Investment Notes: National Renewable Network

Jelix is proud to back National Renewable Network (NRN), the rapidly growing business on a mission to provide solar energy for all.

Read the raise announcement here. 

In November 2024, Jelix Fund 1 participated in NRN’s oversubscribed AUD $4.3 million pre-Series A round led by the Club Investible syndicate, and alongside Electrifi Ventures and Ecotone Partners. This capital is designed to set NRN up for their upcoming Series A rounds and continue their stellar market traction.

Why Jelix is excited to back NRN

NRN addresses three critical challenges in the solar energy market: high upfront costs for consumers, volatile energy prices for retailers, and customer engagement issues for solar installers. Consumers often face significant initial expenses, exceeding $20,000, which limits access to solar and battery solutions. Energy retailers must navigate the increasing volatility of energy prices driven by solar energy's contribution to the grid, further squeezing their margins. Meanwhile, solar installers often find themselves with a transactional relationship with customers post-installation, resulting in lost opportunities for recurring revenue and fostering a price war amongst installers.

NRN's comprehensive solution effectively addresses these challenges. By enabling customers to install solar and battery systems with no upfront costs, NRN eliminates financial barriers and promotes greater adoption rates. For energy retailers, managing Distributed Energy Resources (DER) allows them to improve margins while differentiating their services, retaining customers and encouraging the green transition. NRN also strengthens ongoing relationships between solar installers and consumers, shifting focus from one-time transactions to sustainable, recurring revenue streams. This collaborative approach empowers installers to deliver quality installations while benefiting from NRN’s innovative financing methods. By bridging gaps between these stakeholders, NRN positions itself as a pivotal player in the solar energy landscape, driving growth and sustainability for all parties involved.

Super fast growing business with multiple revenue streams 

In September 2023, NRN generated c. $13.4k in revenue, and by August 2024 it had achieved c. $215k of revenue - a 16x increase! ARR has grown from $120k to $600k over the same time period. In addition, September has been another record month for the business, with a record number of new sites installed, meaning that NRN has broken even for the first time. NRN operates under three primary revenue models: owning and licensing Distributed Energy Resources (DER), collecting deployment fees from solar installations, and offering ancillary services. The company licenses DER assets—such as solar and battery systems—to energy retailers, enabling them to create energy plans that provide cheaper electricity bills to consumers without upfront costs. Additionally, NRN earns a ‘clip of the ticket’ on each solar installation financed through its debt facility. Furthermore, NRN has identified a promising revenue stream through ancillary services, generating $20,000 in its first month by helping solar installers procure assets at scale.

Visionary founder with proven entrepreneurial experience

The NRN team is led by visionary founder and CEO Alan Hunter, whose entrepreneurial spirit drives the company's mission to provide accessible renewable energy for all. Alan's previous experience as co-founder of Splend, where he scaled operations to over 150 employees, highlights his ability to identify opportunities. 

A massive opportunity

The size of the market is very significant and rapidly expanding too; The Australian Energy Market Operator (AEMO) projects $130 billion in investment for Distributed Energy Resources (DER) by 2050. With 23,000 solar installations occurring monthly in Australian homes, NRN’s goal of capturing 8% of this market—22,000 installations annually—generates $55 million in annual recurring revenue. NRN has also identified key markets in Europe and the US as being fertile grounds for international expansion.

Jelix is excited to invest in NRN due to the company’s innovative solutions addressing key challenges in the large solar energy market. NRN has demonstrated significant traction in recent months, achieving remarkable revenue growth. The market is very large and is likely to only grow further with the cost of living crisis, the transition to renewable energy and energy retailers being able to generate more money. Led by CEO Alan Hunter, NRN boasts a motivated team that is eager to drive the company forward. While acknowledging potential challenges, Jelix believes NRN’s rapid growth and expansion plans present a compelling investment opportunity in the burgeoning renewable energy sector.