Exclusive: TPG Rise Climate invests $150M into solar company Palmetto

Solar company Palmetto has secured $150 million in equity financing from TPG's Rise Climate fund, the company exclusively tells Axios.

Why it matters: TPG Rise Climate is an influential investor that counts former U.S. Treasury Secretary Hank Paulson as its chairman. The fund's infusion of money into Palmetto is a major endorsement for the company's plan to expand beyond residential solar into other forms of electrification.

Details: TPG's Steven Mandel will join Palmetto's board as part of the deal along with former Facebook executive Molly Graham and former FERC chairman Neil Chatterjee.

• The round closed in February, Palmetto CEO Chris Kemper tells Axios. He declined to share the round's valuation.

State of play: Palmetto started as a pure residential solar play, Kemper says, but has evolved to meet rising home-owner demand for other ways to electrify their homes.

• The Charleston, South Carolina, company has also rolled out a loan product for customers to finance cleantech home upgrades.
• With the Rise Climate funding, it is adding energy storage, EV charging and smart home features to its offerings.

The bottom line: It's not enough for companies to operate as pure play installers or operators in the growing market for residential electrification.