In 2019, Solfácil was founded with the goal of becoming the enabler of the distributed solar market in Brazil. The company’s founder, Fabio Carrara, built a seven-year career at BCG and, after his MBA at Wharton, founded a solar installer – Responsible for integrating solar kits directly into customers’ homes. This first entrepreneurial experience offered him insights into the potential for scaling the solar market by leveraging the power of distribution through local installers.
Even though the Brazilian solar market had experienced significant growth over the previous years, in 2019, financing remained a critical barrier to mass adoption, with many potential users lacking the upfront capital to invest in solar energy systems. Solfácil was created to bridge this gap, entering the market as a specialized financier for solar projects. The company’s unique value proposition offered a B2B2C model, partnering with solar installers to facilitate the adoption process.
As the market evolved, so did Solfácil. From 2019 to 2020, the company launched initial residential credit lines, later introducing offerings for SMBs and rural areas. Recognizing the need for an integrated approach, Solfácil launched its proprietary IoT solution, Ampera, in 2021, which allows for remote monitoring and energy management. By 2022, the company further expanded by acquiring Solar Inove, and completing a full ecosystem with distribution capabilities. Finally, by 2023 Solfácil launched insurance products for its final users, completing a sequence of product releases to build a full ecosystem for distributed solar energy generation.
Market evolution since Solfácil’s inception:
The Brazilian distributed solar energy market generated ~$430M USD in revenue in 2018, with solar users accounting for less than 0.06% of total electricity consumers. However, Brazil’s unique characteristics signaled a strong growth potential: Compared to the United States, Brazil offers 75% lower installation costs for solar kits and faces much higher electricity tariffs—electricity costs represent 10% of household income in Brazil versus just 3% in the U.S. This combination results in one of the world’s shortest payback periods for residential solar equipment.
Despite these favorable conditions, until 2020, Brazil’s distributed energy generation remained underdeveloped, with less than 1% decentralization compared to 7% in the U.S. in 2019. This untapped potential began to materialize as the market grew at over 35% CAGR in installed capacity from 2019 to 2023, reaching $4.7 billion in total revenue after peaking at over $8 billion in 2022.
While credit options were already available for consumers before Solfacil joined the market, the only financiers were incumbent banks, offering limited products with high interest rates and slow processes. Solfácil recognized the opportunity to disrupt this model by offering a fully digital, user-friendly, and integrated financing experience specifically tailored for the solar market.
Building an Integrated Ecosystem for Solar Adoption:
Solfácil’s journey from a financier to a comprehensive platform is marked by strategic expansions into new product verticals. Today, Solfácil’s value proposition serves both to installers and end-customers, including
(i) Loan Financing solution;
(ii) Solar equipment sales – Following the acquisition of Solar Inove in 2022, Solfácil expanded into the distribution of solar equipment, being one of the only player to offer both Equipment and Financing to installers;
(iii) IoT Monitoring, with a proprietary solution for energy management, allowing customers to remotely monitor their solar energy production and consumption;
(iv) Insurance Products, offering protection in solar investments.
With a complete product offering, in just under 4 years since starting its operations, Solfácil became the main player of the Brazilian ecosystem, with over 1 GW installed and 88 tons of CO2 emissions avoided.
Fueling Growth: Valor Capital’s Role in Scaling Solfácil:
Valor recognized Solfácil’s potential early on. We partnered with the company in early 2020, becoming Solfacil’s first institutional investor. Valor has proudly invested in subsequent rounds alongside Fifth-wall, QED, Softbank and VEF. As a key partner and board member, Valor has facilitated the hiring of key personnel, connected Solfácil with capital market institutions, and supported fundraising efforts with connections with Solfácil’s current investors.
Valor is proud to be a part of Solfácil’s journey and remarkable growth trajectory. However, we have full clarity that this is just the beginning – We are excited about Solfácil’s future as it continues to revolutionize the distributed solar energy market in Brazil, building the most complete ecosystem in the market.
