Geothermal specialist Dandelion Energy this week announced its closure of a $70 million B1 funding round co-led by LENX, the corporate venture arm of Lennar, one of the nation’s leading homebuilders, and NGP ETP, the energy transition investing platform of NGP. The funding round included participation from Breakthrough Energy Ventures, NEA, GV, Collaborative Fund, and Building Ventures.
Dandelion Energy is bringing modern, ultra efficient heat pumps to residential structures with its geothermal heating and cooling system, allowing residential building stakeholders and homeowners to replace their existing HVAC or for new builds and renovations to incorporate this technology with ease.
For most homes, heating is both a significant cost and the majority of the carbon footprint. By switching to geothermal with Dandelion, the company says that these homes have dramatically reduced their footprint while securing long term energy affordability for themselves.
The company recently celebrated its 1,000th geothermal installation. The new fundraising reflects the size of Dandelion’s opportunity, as well as its tremendous growth, the company contends.
Dandelion notes it has more than tripled its commercial operations in 2022, and the funding will continue that expansion in retrofit and new construction markets. In addition, as heat pumps move into the mainstream, Dandelion said it will use the capital to invest in a broader range of products capable of serving more customers and geographies.
A press release adds:
With home heating and cooling accounting for more than half of a home’s energy consumption, heat pumps are increasingly considered a compelling alternative to traditional gas-powered furnaces. This decades-old technology is stable, cost-effective, and reliable. The passing of the Inflation Reduction Act of 2022 has made geothermal heating and cooling more affordable and accessible than ever, providing tax credits and other financial incentives for homeowners embracing heat pump technology.
Dandelion says its products "sit at the intersection of sustainability and affordability."
“We are thrilled to welcome these incredible investors to our board. Together, LENX and NGP ETP bring unparalleled expertise in consumer behavior, new construction, and energy economics -- all of which are driving the transition to sustainable heating. Our goal is to be the Tesla of heating and cooling, and with this capital, we expect to make great strides down that path.” -- Michael Sachse, CEO of Dandelion Energy
“Lennar is passionate about the exploration of technology to create solutions that make homes more energy efficient and more affordable for customers. We are eager to continue our engagement with the Dandelion team, working together to lower the cost of geothermal heating and cooling and provide homebuyers with options for a more energy-efficient home.” -- Eric Feder, president of LENX
“The building sector is a significant contributor to global greenhouse gas emissions, and electrified heat pumps are a cost-effective and well-tested method of meaningfully reducing building sector emissions. Ground source heat pumps have among the lowest carbon emissions and lowest operating costs of all heating systems. Dandelion provides a full suite of services from design through installation of a high-quality system, simplifying the process for homeowners, and we are pleased to partner with this outstanding team.” -- Maritza Liaw, partner at NGP