Despite having sunny regions, Mexico has a relatively low solar power capacity compared to Germany. With just over 10 gigawatts of solar capacity, Mexico falls far behind Germany, a country with less sunlight and fewer people.
Government incentives in Germany have driven solar adoption, but Mexico’s solar market is still in its early stages. Customers are unfamiliar with the technology, leading to a fragmented market.
Seeing an opportunity, entrepreneurs Edoardo Dellepaine and Raffaele Sertorio decided to venture into the solar industry in Mexico. They founded Niko, a solar installation company based in Mexico City.
Niko operated in stealth mode until recently when it raised a $3.3 million seed round at a $16 million post-money valuation. The startup aims to focus on residential and small commercial solar panel sales and installations.
Niko’s unique selling proposition includes no upfront costs for customers, guaranteed savings on utility bills, and a free removal offer if customers are not satisfied with the panels.
Although solar adoption has been slow in Mexico, Niko’s investors draw parallels to successful German solar installers like Enpal. Niko aims to navigate the long sales cycles in Mexico by nurturing customer relationships throughout the decision-making process.
Niko provides in-house financing due to limited options from Mexican banks for small-scale solar installations. Residential customers can save 20-40% on utility bills, while small commercial customers can save up to 20%.
Looking ahead, Niko plans to expand its offerings to include home electrification projects such as batteries, EV chargers, and water heaters. The company targets large corporations, banks, and property managers for potential partnerships.
By addressing challenges faced by the solar industry in Mexico, Niko aims to establish itself as a leading player and drive solar adoption in the country.
