Why we invested in Volter
by Ari Helgason
Today we’re announcing Transition’s 15th investment, leading the seed round of London-based Volter.
Back in 2016 I had the pleasure of working with Luke Buhl-Nielsen when we were both investors at Index Ventures in London. We stayed in touch as Luke went into an operating role at KRY/LIVI, building one of the most impactful healthtech companies in Europe where he oversaw rapid international expansion and fundraising. He teamed up with Alex Joss who has spent most of his career working on sustainability at McKinsey and on Systems Transformation at COP26-28.
After he left his previous role, Luke and I brainstormed about the opportunities that are opened up by the large-scale deployment of renewables. What do we need to get the most value out of these assets? What does it take to speed up their deployment?
The cost of solar power has dropped faster than anyone predicted over the past five years. Panels cost 40-60% less today than in 2019, driven by economies of scale, gradual manufacturing efficiency gains and technological breakthroughs. In many parts of the world, solar now represents the cheapest way to generate a megawatt of power.
Driven by this, European solar grew 40% year-over-year between 2022 and 2023 with capacity expected to triple in the coming years. If fully deployed, rooftop solar could fulfill 25% of all European energy needs. The speed of deployment has confounded even energy experts, and is opening up a wealth of new electrification opportunities and strengthening energy resilience across the continent.
In May, the European Rooftop Solar Standard under the EU Performance Building Directive (EPBD) came into effect, mandating that all new buildings be solar ready. It will apply to all new commercial buildings from 2027. Importantly it will unlock the potential of large rooftops such as those of offices, commercial buildings and car parks. If successfully implemented, this could lead to new solar installations powering the equivalent of 56m European homes. This could lead to 150-200m GW of new rooftop solar installed in the next few years. Total rooftop solar capacity in Europe was at 170GW in 2023 and set to grow to 355GW by the end of 2027.
In the UK alone, we estimate that somewhere between £10-£20bn is being billed per year for solar in the commercial and industrial sectors. This is set to grow to £40-£60bn over the next ten years. The potential value of better billing and operations is massive.
That’s where Volter comes in. The company is building the operating system that helps real estate owners, managers and solar installers to deploy, manage and optimise solar portfolios across sites. They do this through automated billing, payments and customised insights and reporting, streamlined installation proposals, along with real-time operational performance monitoring, enabling users to maximise revenue, speed up planning and new deployments.
Beyond the commercial opportunity, the climate impact of speeding up solar deployment and making renewable energy assets more productive is massive: 40% of global CO2 emissions come from the real estate sector. The shift not only makes economic sense for landlords and tenants, but also plays a crucial role in building a more sustainable and resilient energy future for our planet.
The company launched in August 2024 and they’re already working with some of the largest real estate owners and managers in the UK, and are seeing huge demand from customers. We’re excited to support the company on their mission to speed up solar deployment and make those assets more productive, building a more resilient energy system in the process.
Volter joins portfolio companies like Reel, Unigrid and Heat Geek in reshaping how we power our cities and industry. Welcome to the Transition family Luke and Alex!