Arysun, a climate-tech startup from Indonesia, has raised $575,000 in pre-seed funding. The round was led by Wavemaker Impact, with extra support from the First Move Fund.
Arysun said in a statement on Wednesday that the funding will help speed up its work to offer affordable and easy-to-use solar energy solutions for middle-income families in Southeast Asia.
The pre-seed funding will help the company grow its team, speed up solar panel installations in Indonesia (its primary market), and build partnerships with local banks, installers, and suppliers.
Shortly, Arysun will also create and test a digital platform to help more people start using solar energy.
Arysun said that with energy costs increasing, more people caring about the climate, and cheaper solar equipment, the company is putting itself in a strong position to lead the shift to renewable energy in the region. The startup wants to make solar power more accessible for middle-class homeowners by offering affordable solar solutions.
“We believe solar energy should be available to everyone — and the key is offering the right-sized solution for our customers to keep costs down.”
“Every green electron generated must not be wasted. Anything that is over-specced adds a barrier to adoption,” said Ng Aik-Phong, Founder and Chief Executive Officer of Arysun.
“With this funding, we’re building an affordable, smarter, and scalable way to bring clean energy to millions of Southeast Asians in a way that makes financial sense for middle-income households and, at the same time, enables us to achieve our long-term environmental impact of 100 million tons carbon abatement annually,”
With a fast-growing middle class, Southeast Asia is one of the world’s fastest-growing economic and population regions. It is expected to become the fourth-largest economy in the world.
In Indonesia, middle-class households are expected to grow from 32 million to 54 million by 2035.
This population change is causing a significant rise in energy needs, and by 2040, homes in the region are expected to use twice as much electricity as they did in 2017.
According to the 8th ASEAN Energy Outlook, solar power in ASEAN is expected to grow a lot—from 7.7% (25 GW) of total energy capacity in 2022 to about 27% (200 GW) by 2040. That’s an increase of eight times.
Given this growth, Arysun said the company is focused on creating local, tech-driven models that make it easier, more affordable, and more beneficial for middle-class households to adopt solar energy.
By solving everyday problems and focusing on what matters most to families, the company aims to speed up Southeast Asia’s move to a cleaner and brighter energy future.
Early users of Arysun’s solar starter kits in Indonesia have saved more than 50% on their electricity bills. This shows that as solar energy costs keep falling, it’s becoming affordable and exciting for Arysun’s target customers.
In Indonesia, the average cost of electricity is about Rp 1,600 per kWh (around $0.11). Since mid-2022, residential energy costs for customers without subsidies have increased by about 5%.
For middle-income households, electricity expenses can account for 10 percent of monthly household income — an increasing burden as utility costs may continue to rise.
For middle-income households, electricity costs can take up 10% of their monthly income. This burden is growing as utility costs are likely to keep increasing.
“As panel prices continue to fall, rooftop solar is fast becoming one of the highest value-returning assets for Southeast Asia middle-class families, with the potential to increase monthly savings by 15 percent to 20 percent,” said Guillem Segarra, Principal at Wavemaker Impact.
“With the rising demand for affordable energy options, Arysun’s range of solar products, priced for the mass market, is well-suited to serve this large, underserved group of customers.”
“We’re excited to back the team in its mission to create a consumer company that provides renewable and energy-efficient products designed for the everyday man on the street,”
Read more- Singapore based 1982 Ventures leads funding in AI ITFM firm YäRKEN
