Detroit Startup Collaborates with Utilities to Reduce Costs of Home Efficiency Upgrades

Every homeowner knows that renovation projects can be daunting. From choosing the right contractor to negotiating a reasonable price, the entire process is often fraught with uncertainty.

A wave of startups has emerged to support homeowners with electrification projects, such as installing solar panels and replacing gas furnaces with heat pumps. Nonetheless, they frequently encounter challenges related to expenses: acquiring customers can often be more than half the battle.

Pearl Edison is convinced that utilities are the solution.

“We leverage their brand trust and recognition as one of our greatest assets,” shared Evan Anderson, co-founder and CEO of Pearl Edison, in an interview with TechCrunch.

The investment community is aligning with this vision. The Detroit-based startup has successfully raised a $3.3 million seed round from New System Ventures and Commonweal Ventures, as reported exclusively by TechCrunch. Lightbank and Newlab also contributed to the funding.

Pearl Edison works alongside utilities to identify customers who stand to gain the most from energy retrofit initiatives, which encompass heat pumps and enhanced insulation. The company develops a white-labeled website for the utility and aids in executing campaigns aimed at enrolling customers for energy efficiency upgrades.

Utilizing various data sources, Pearl Edison designs projects and assures customers a guaranteed price. After the software creates initial plans, it dispatches workers to verify everything on-site before the final design is completed.

The jobs are then forwarded to carefully vetted contractors for installation. Pearl Edison stands to gain from these installations, expecting that most will ultimately cost less than the estimated prices. Homeowners are likely to benefit too, as Anderson pointed out that Pearl Edison is able to negotiate lower rates since contractors need to spend less time on customer acquisition.

At present, the company has established collaborations with two utilities: DT Energy in Michigan and Duquesne Light in the Pittsburgh region, along with one government entity, the city of Ann Arbor, Michigan. Anderson mentioned that they plan to partner with two additional utilities this year.

“We’ve found them to be dependable partners,” Anderson observed.