Despite a downturn in the U.S. residential solar market, venture capital firms are backing a new startup aiming to reshape how homeowners access solar energy. Daylight Energy has secured $75 million to expand its solar and battery subscription service, offering customers a way to lower electricity costs while contributing to grid stability.

The funding round includes $15 million in equity led by Framework Ventures, with backing from major investors such as Andreessen Horowitz, Lerer Hippeau, M13, Room40 Ventures, and EV3. An additional $60 million, led by Turtle Hill Capital, is earmarked for project deployment. The company plans to begin installations on roughly 1,200 homes in Illinois and Massachusetts, according to CEO Jason Badeaux.

Through Daylight’s model, customers subscribe to solar and battery systems without large upfront costs. Participants can save about 20% on their utility bills and sell surplus energy back to the grid, helping to stabilize power supply during periods of high demand or extreme weather.

This investment push comes at a challenging time for the U.S. residential solar industry, which has seen slowing growth due to rising interest rates and diminished incentives — especially in California, the nation’s largest solar market. These pressures have led to restructurings across the industry, and some companies, including Sunnova Energy International Inc., have filed for bankruptcy.

According to a September report from the Solar Energy Industries Association and Wood Mackenzie, solar installations are expected to decline by 13% next year as key federal tax credits begin to phase out.

Despite the tough climate, Daylight Energy and its backers are betting that their innovative subscription approach and decentralized energy model can offer a new path forward for home solar adoption.