(Bloomberg) – The US residential solar market is in turmoil following the high-profile bankruptcy this year. One of these bankrupt companies has a new venture that believes that by leveraging artificial intelligence to help homeowners manage their energy needs, they can turn the industry around.
John Berger, former head of Sunnova Energy International, said he raised more than $4 million to form Otovo USA. The new company has a license agreement with Norway-based home solar company Otovo ASA, where Berger also serves as the board of directors.
The new company will be offering real-time monitoring and subscriptions to AI software that can provide rapid service, Berger said. The platform helps users manage solar panels, batteries, backup generators, electric vehicle chargers and other household energy devices. Otovo USA will be launched in Texas and will be able to sell electricity directly to the home, along with plans to expand to other markets.
“What we really have to do is not focus on providing the initial installation of equipment, but on providing that power service,” Berger said. “As an industry, we don't do any good work on that.”
Burgers are not used to the plight of the residential solar business. He left Sunnova before applying for Chapter 11 in June after struggling with increased debt and reduced sales prospects. Berger said he learned many lessons from Sunnova's downfall, including the value of having a business with a simple fundraising structure that is not exposed to policy whiplash. (Several national residential solar companies have encountered trouble by resorting to complex financial engineering to help grow fuel.)
The solar industry has been hit hard by high interest rates that made homeowners more expensive to fund solar panels. The industry is facing even more significant headwinds with the passage of President Donald Trump's tax bill, ending tax cuts for residential solar panel purchases from this year onwards. Analysis by Bloombergnef shows that residential solar equipment is projected to decline by 35% in 2026.
Still, businesses are keeping their eye on fertile ground in Texas as the number of homeowners with solar systems and batteries is growing, and the state's deregulated electricity market is creating, allowing businesses to compete for electricity production and retail. These include base power that provides low-cost battery facilities and synchronizes as a virtual power plant. The company was co-founded by Zach Dell, the son of billionaire Michael Dell, and raised $200 million earlier this year.
Burger said the rooftop solar industry is not focusing adequately on the services of panels and other household energy equipment and is seeing market opportunities that meet their needs. Additionally, he sees artificial intelligence as a tool that helps the US residential solar business reduce costs and improve customer service.
“Residential solar is not dead,” he said. “It's at a turning point and the AI is going to save it.”
More stories like this are available at bloomberg.com
