Australia’s residential rooftops are a solar success story, with over 30% adoption. However, the vast, empty roofs on commercial and industrial buildings are a massive untapped resource, with adoption rates lagging at less than 5%.

The primary culprit? A classic "split incentive" problem: Landlords don't want to pay the hefty upfront cost for a system that primarily benefits their tenants' power bills, and tenants won't invest in a building they don't own.

Sydney-based startup MetroElectro believes it has cracked the code with a "solar-as-a-service" model and has raised $5 million in a mix of debt and equity to scale its solution.

The funding round consists of a $4 million debt facility from Ecotone Partners’ The Planet Fund and a $1 million equity investment from Singapore-based Wavemaker Impact. Wavemaker, a VC and venture builder, is a fund focused on decarbonisation and is a returning investor, having previously backed the company with a $1 million pre-seed round in early 2024.

Founded in 2024, MetroElectro’s pitch is simple: it designs, finances, installs, and maintains rooftop solar panels and battery storage on commercial properties at zero upfront cost to either the landlord or the tenant.

The company's model removes the central point of friction. MetroElectro makes its money by selling the cheaper, solar-generated electricity directly to the tenants, with contract terms aligned to their leases. Excess power is sold back to the grid.

For tenants, it's an immediate reduction in energy bills and a smaller carbon footprint. For landlords, it's a capital-free building upgrade that is fully maintained.

This model is precisely what attracted its new debt provider.

"Many climate solutions that are available have been slow to be adopted; not because the technology doesn’t work, but because of a lack of business incentive," said Amanda Goodman, Partner at The Planet Fund. "These solutions scale when a novel business model comes along, which releases these pools of value. MetroElectro’s business model makes it a no-brainer for businesses with large commercial or industrial facilities to install rooftop solar and battery storage. Our investment in MetroElectro aligns strongly with the Planet Fund's objective of scaling proven technology to help businesses save money and reduce emissions.”

The Planet Fund, which recently closed a $25 million fund, focuses on commercially-ready, capital-intensive solutions that can cut carbon emissions now.

MetroElectro was founded by Lloyd Heinrich, an engineer and strategist with leadership experience at BCG, Coles, and Redbubble, where he was involved in its ASX IPO.

According to the company, Heinrich spotted the opportunity while running The Wine Collective, noticing vast, sun-drenched industrial roofs on buildings whose managers were under pressure to cut costs.

The market potential is significant. MetroElectro notes that if commercial and industrial roofs reached the same 30% penetration as residential, they could meet upwards of 25% of Australia’s entire electricity needs.

The startup already has a near-term pipeline of more than 50 projects, representing over 20MW of solar and 20MWh of battery potential. Early clients include prominent names like Aramex, Linde Materials Handling, and Bucher Municipal.

Adam Greer, Operations Director at Aramex, confirmed the model's appeal: “To improve our commitment to ESG, we were looking for a solar rooftop solution for our depots. MetroElectro gave us a solution that is cost effective and which didn’t require upfront capital.”

The fresh capital will be used to develop MetroElectro's technology stack and accelerate the deployment of projects already in its pipeline. The company is already looking ahead, targeting an additional $3 million equity raise in early 2026.

"Commercial and industrial rooftops in Australia, Europe, and the US represent enormous untapped potential," said Marie Cheong, Partner at Wavemaker Impact. "If all these rooftops were properly utilised, we could reduce carbon emissions by more than seven times Australia’s annual emissions. Tapping this potential is crucial for developed countries to transition their energy mix to renewables.”