Renovation projects are rarely enjoyable for homeowners. From finding a reliable contractor to negotiating a fair price, the process is filled with uncertainty. Many startups have emerged to assist with electrification projects, such as solar panel installations and gas furnace replacements with heat pumps. However, they still face challenges with costs, as customer acquisition often consumes more than half their resources.
Pearl Edison believes the solution lies in partnering with utilities. “We are leveraging their brand equity and trust,” said Evan Anderson, co-founder and CEO of Pearl Edison. Investors have shown confidence in this approach, with the Detroit-based startup securing a $3.3 million seed round from New System Ventures and Commonweal Ventures. Lightbank and Newlab also participated in the funding.
Pearl Edison collaborates with utilities to identify customers who would benefit most from energy retrofit projects, including heat pumps and additional insulation. The company creates white-labeled websites for utilities and assists in running campaigns to encourage homeowners to sign up for energy efficiency upgrades.
Using various data sources, Pearl Edison designs projects and provides guaranteed pricing for customers. After generating initial plans, the company sends workers to verify details before finalizing the design. The jobs are then assigned to vetted contractors for installation.
Pearl Edison earns revenue from the installations, expecting most projects to cost less than quoted. Homeowners also benefit from lower costs, as installers save time and resources by avoiding customer acquisition efforts.
Currently, Pearl Edison has partnerships with two utilities—DT Energy in Michigan and Duquesne Light in Pittsburgh—as well as the city of Ann Arbor, Michigan. The company plans to add two more utility partners this year. “We’ve found them to be good partners,” Anderson noted.