Amber Electric, a new energy company which is unlocking the value of renewable energy with an entirely new way for customers to buy electricity, has raised $2.5 million in an investment round led by Square Peg.

The Aussie startup wants to kickstart a smart energy revolution by empowering customers with direct access to wholesale electricity prices, as well as enabling them to shift their energy use to times when cheap wind and solar energy are generating. Where traditional energy companies sell electricity at a fixed rate with a retail markup, Amber just charges a $10/month subscription and then passes on real-time wholesale prices. The result is customers save hundreds of dollars each year, while also building demand for more renewables.

Square Peg led the seed round with a $2 million investment, followed by a reinvestment from one of Amber’s earliest investors, Black Sheep Capital. The remainder came from Giant Leap – Impact Investment Group and angel investors passionate about renewable energy, including Simon Sheikh (Founder of FutureSuper), Anna Rose (Author and Environmentalist), Eytan Lenko (Chair of Beyond Zero Emissions) and James and Geraldine Chin Moody (5H Values Capital).

Amber Electric was founded in 2017 by Chris Thompson (previously Boston Consulting Group and Goldman Sachs) and Dan Adams (previously Tesla and Boston Consulting Group) and is already backed by some of Australia’s best accelerators and investors, including EnergyLab (Australia’s leading energy accelerator) and Startmate (Australia’s leading tech accelerator).

Already available to customers in South Australia and Sydney, Amber Electric is using the funding announced today to drive business growth, with a nationwide launch to be announced soon.

The seed funding announcement coincides with co-founder Dan Adams speaking at the Australian Investment conference this Thursday in Melbourne.

Dan Adams, Co-founder, Amber said:

“The existing electricity model was not designed for a world powered by renewable energy. Currently, we are paying too much for electricity and we aren’t moving fast enough towards 100% renewable energy. At Amber, we’re building a smart energy revolution that’s both cheaper and greener.”

“We are fortunate to have the support of a remarkable group of investors who are excited about the future we are building. This capital raise is another step closer to our vision of unlocking the value of renewable energy for everyone.

“By shifting some of their energy use to times when cheap renewables are generating, our first customers in South Australia and Sydney have been saving hundreds of dollars while building demand for renewable energy. We also pay customers with rooftop solar the real-time wholesale energy price for power they export to the grid – the same price that large power stations get for the energy they produce. We’ve even paid customers for using power when wholesale energy prices were negative, due to surplus renewable energy in the grid.”

Tushar Roy, Partner, Square Peg, said:

“Amber is building a technology-enabled energy company the likes of which the world has never seen before, and we’re delighted to have led its seed round. Amber aims to drive down energy bills in a way that also shifts energy use towards more renewables – it’s a win-win. It also brings transparency to an opaque industry and puts in its customers’ hands the power to make a positive impact on the environment.”

“We have known Chris and Dan for several years. They embody the traits we look for: exceptionally bright, ambitious and motivated to have a positive impact on the world. We are excited to be on this journey with them.”

Will Richardson, Managing Director, Giant Leap Fund, said:

“In just two years, Amber has already built an incredibly loyal customer base. But unlike other energy companies, it won’t stop at just having happy customers. Amber’s goal is to empower its customers to help shift Australia to be 100 per cent powered through renewables.

“The founders of Amber are triple threats. Their time in consulting and investment banking gives them knowledge of the complex energy market, while their time at Tesla puts them at the edge on renewable energy and they know how to create a movement to drive change through their activist campaign days. Chris and Dan are uniquely placed to make this goal a reality.”

Amber Electric is a new kind of electricity retail product, designed to unlock the value of renewables for everyone. It is the cheapest way to buy electricity and the fastest way for Australia to reach 100% renewables.

Amber was founded in 2017 by Chris Thompson (previously BCG and Goldman Sachs) and Dan Adams (BCG and Tesla) and is backed by some of Australia’s best accelerators and investors, including EnergyLab (Australia’s leading energy accelerator), Startmate (Australia’s leading tech accelerator), Square Peg, and Black Sheep Capital.

Amber has partnered with licensed electricity retailer Energy Locals to bring its product to market.