The Powerhouse Company started as a crowdfunding startup with the idea of helping new solar companies handle difficult business challenges. It is one of the few companies that focus on launching and growing solar companies to the main stream. They run an accelerator and incubator program. Under the accelerator program, upcoming solar companies are given a small amount of funding, free or low-coat office space, and networking opportunities with investors and customers. These companies are typically still in their early years with developing technology and business plans.

Powerhouse has invested into 15 startups since their launch in 2013, and they plan to continue to grow as the need of solar power also increases. The incubator part of the program rents the office space to the more established solar and energy startups. It now hosts 15 companies and over 100 people. Powerhouse’s goal is to foster a new wave of technology innovation in the deprived market of solar energy. Many companies under Powerhouse are using software, data, and the web for easier designs and selling at a lower cost solar system.

Before the time of Powerhouse, solar startups experimented with different materials and designs of solar cells and panels which led many to their demise. The dropping of price in solar panel has attracted new entrepreneurs and startups that want to shorten the time it takes to get a permit and get more homeowners on the idea of solar power. There remain challenges for the startups: utilities and power companies have little to no experience working with the new technology; and funding from the federal government to make improvements is at a minimal. As the prices continue to decrease, startups hope there will be more investors to help with the transition.

Powerhouse makes its money by taking a small equity stake in its accelerator companies when they get acquired or go public. Much of their investment money comes from a combination of grants, corporate sponsors, and office space rental fees. However, none of the companies have actually been bought or have gone public yet. But some of them have attracted funding since going through the accelerator program and increased their value.