This Detroit startup is turning to utilities to make home efficiency upgrades cheaper

Home renovation can often be a daunting task for many, filled with uncertainties from contractor selection to pricing. However, a Detroit-based startup, Pearl Edison, is aiming to change that narrative by collaborating with utilities to make home efficiency upgrades more affordable. With the rise of electrification initiatives, such as solar panel installations and the transition from gas furnaces to heat pumps, numerous startups are emerging to assist homeowners. Yet, the challenge of customer acquisition remains a significant hurdle. Evan Anderson, co-founder and CEO of Pearl Edison, believes that leveraging utility companies' brand trust is key to overcoming this barrier. "As much as anything, we are leveraging their brand equity and trust," he explained in an interview. The innovative approach has attracted attention from investors, leading Pearl Edison to secure a $3.3 million seed funding round, supported by New System Ventures and Commonweal Ventures, among others. The startup collaborates with utilities to pinpoint customers who would benefit most from energy efficiency projects, such as heat pumps and enhanced insulation. Pearl Edison creates a custom-branded website for the utility and assists in running campaigns to enroll customers in energy upgrades. Utilizing a variety of data sources, the company designs tailored job plans and guarantees prices for the customers. After generating initial plans through its software, field workers verify details before finalizing designs, which are then handed over to vetted contractors for installation. Anderson emphasizes that Pearl Edison aims to provide cost savings to homeowners as well. The startup estimates that the majority of installation jobs will be less expensive than quoted, as contractors save time by not having to hunt for clients. Currently, Pearl Edison has established partnerships with two utilities: DT Energy in Michigan and Duquesne Light in Pennsylvania, alongside collaboration with the city of Ann Arbor. Plans are underway to onboard two additional utilities this year, which Anderson describes as valuable partners in this transformative initiative.