Ten years ago, Solnet Group co-founders Kaj Kangasmäki and Arttur Kulvik joined together to start a company with some common goals in mind: meet future energy needs, reduce the effects of fossil fuels on the climate, and offer high-quality digital solar solutions to companies across Europe.
Since then, Solnet Group has become one of Europe's fastest-growing energy companies and the biggest Finnish-origin PV company. On average we have grown organically 85% annually for 10 years. The guiding principles have been making an impact, customer benefit, flexibility, courage, and inspiration, the unique “Solnet Spirit” has guided the company since the very beginning. We sat down with Kaj and Arttur to find out what insights 10 years of working in the solar industry have brought, and where he sees Solnet Group heading in the future.
What’s changed the most in the solar industry since you started Solnet Group in 2014?
“When we first started the business, we got questions about whether it was even feasible, many even doubted if there were enough sun hours in Finland for solar to be taken seriously. Nowadays nobody questions the business case or us. We are servicing large global customers across Europe and focusing on customer customers, not the market in our approach. Solar energy is going to be the largest source of energy by 2050. It is seen as an integral part of the energy transition and is a key element for solving the climate crisis. In most parts of the world, solar has become the cheapest means for producing electricity. There has been a great shift in peoples people’s mindset to solar and renewables in general“, says Arttur Kulvik, Chairman of the Board.
“When we started, we had a goal for making a meaningful impact in battling climate change and great passion to do so. We wanted to create a company with a purpose; to change the world one solar utility at a time to reduce carbon emissions. And to do this together with our customers by helping them to reduce their carbon footprint. From the beginning, we understood the value of remote management, accurate data, and automation so that solar utilities can be managed as a fleet. This has been a very successful strategy as digitalization has changed the energy industry rapidly”, tells Solnet Group’s CEO Kaj Kangasmäki about the start of the company.
What are some of the challenges Solnet Group has faced since its inception, and how have you overcome them?
“Things change when the company grows, so the way we do things also needs to change. We need more processes and the right people. There is a big difference when there are 10 people in the company versus 100 people. We need to ensure we have the needed competencies, customer focus, and the same direction. We must take care of our employees and customers.
Thankfully, we have been able to find the right talents who are enthusiastic about the business and the field. They have the passion to make things happen. The team is the most important thing and a good driver for our main focus, which is the customer”, explains Kangasmäki.
What predictions do you have for the commercial & industrial solar market in the next 10 years?
Kulvik predicts that the market will continue to diversify. “In the future electrical networks will become more like our current data infrastructure. All energy assets, not just solar but anything that produces or consumes electricity will be connected and controlled as a fleet. Energy storage will play a critical role in building a Future-proof electricity grid that can manage the volatile and changing demand as the world moves forward electrifying everything. In the future, we have to be able to generate, distribute, and consume energy more efficiently, just like we do with our data already. This all provides great investment opportunities while creating a more stable energy market on long term.”
Since the beginning, Solnet Group has had a strong focus on digitalization. How has this model kept pace with technological development?
“The energy industry is very traditional and very much hardware-driven. We do have a background in IT. Therefore, we have seen the benefits of digitalization from the beginning, and we have tried to educate our customers to perceive the benefits of modern technology.
We have had the vision for further development to build a decentralized energy system with a virtual power plant. After the funding round in 2022 Solnet Group has started to develop our IPR and software for energy management, and put more investments into R&D. The benefits of AI will also help in many areas”, tells Kangasmäki.
PPAs, another key feature of Solnet Group’s business model, have also grown in popularity in the past few years. What advantages have PPAs offered for your customers thus far? How do you foresee the PPA market developing in the near future?
"Customers are looking for price protection and cost savings. With a PPA, they do not need to invest, so it is a sensible way to protect a part of their energy procurement. The market will grow as the amount of installations grows. Customers can save their money to use for their investments", says Kangasmäki.
How do you see the next 10 years?
"We launched the smart solar concept 10 years ago. Many market players tried to copy, without really understanding the smartness element. Now we have launched a future-proof solar -concept to tackle changing energy market conditions and volatility. It means that we will leverage AI, energy storage, and smart solar in the first phase. By doing that we can increase our customer returns and decrease the risk for the future. We need solutions that can adapt to the changing market conditions. More flexibility and new solutions are needed to stabilize energy markets", tells Kangasmäki.
Any last words
"I am very grateful for everything that has happened. It is amazing that we have built a company in 10 years that delivers nowadays projects for leading global companies in Europe. I am grateful that people in companies like Kesko, Ilmarinen, and IKEA believed in us in the early days and let us show that we can.
The other critical element to our success is personnel. We have been able to attract very passionate and talented people. The company and the personnel have grown with major steps in the last decade. Solnet Spirit has guided us on a very exceptional track towards one of the few pan-European players. A huge thanks to our personnel, clients, partners, and advisors. Without these great people, this would not have been possible", says Kaj Kangasmäki.
Solnet Group’s 10-year milestones
2014 Solnet was founded in Finland and delivered its first 10-year rooftop Solar PPA, achieving profitable growth starting in the first year of operation.
2015 Became the first company to offer Solar as a Service in Finland with the first commercial offering for PPAs (Power Purchase Agreements).
2016 Delivered two of Finland’s largest rooftop solar utilities. Solnet Group was Awarded WWF’s Climate Solver prize.
2017 Solnet Group B.V. was established in the Netherlands.
2018 New Solnet Group strategy to reflect growth – from a country-based to an organization-based approach.
2019 Solnet Group was chosen by Sitra as a European circular economy forerunner in the energy sector.
2020 First agreements in Germany. Solnet Group was featured in the Financial Times as #59 on the FT1000 Fastest Growing Companies in Europe and #3 for the energy sector on the list. Focus on helping large corporate customers meet their RE100/sustainability targets.
2021 First deliveries done for customers in Germany. Solnet Group was selected as a global leader in smart solar by Fortune Business Insight
2022 15-million-euro investment from EAB Private Equity and TESI (Finnish Industry Investment) to accelerate Solnet Group’s international growth. Pan-European onsite solar deliveries. Solnet office was opened in Frankfurt, Germany.
2023 Planning for the largest solar park in Southern Finland begins. We achieved the ISO 9001 quality certification. The first delivery to Italy.
2024 Launch of Solnet Manager volatility services. Expansion into utility-scale solar. First project delivery outside of the EU
Solnet Group has been proud to grow alongside our customers over the last 10 years. Our goal for the next decade is to continue to provide reliable and long-lasting solar solutions to make solar installation as easy as possible for companies and utilities throughout Europe. And to make an impact on the climate with cost-effective clean power generation!
