We have made a follow-on investment in the Series B round of Monochrome Inc. (Headquarters: Yokosuka, Kanagawa; CEO: Yusuke Umeda; hereinafter “Monochrome”), a company engaged in the development and sale of building-integrated photovoltaic (BIPV) panels and energy services. With this investment, the company’s total fundraising in this round has reached ¥1.7 billion, bringing its cumulative equity funding to ¥3.3 billion.
Under its mission of “Creating landscapes we want to preserve for the future,” Monochrome offers the “Roof-1” series of roof-integrated solar panels that combine aesthetic design with power generation performance, the “Wall-1” wall-integrated panels, “Energy-1” — a home energy management system (HEMS) that optimally controls household electricity — and “Monochrome Denryoku,” a retail electricity service. The company’s defining strength is its evolution beyond a mere panel manufacturer into an “energy integrator” that seamlessly handles everything from energy generation to control and distribution.
The funds raised in this round will be used to establish mass production capabilities for “Roof-1e,” a strategically priced product that achieves approximately 30% cost reduction from the current lineup for homebuilders and construction firms. The funding will also support the development of an energy control system utilizing Eco-Cute (CO₂ heat pump water heaters), and accelerate the nationwide rollout of a regional energy circulation model already proven in Hakuba Village, Nagano Prefecture.
Japan’s energy self-sufficiency rate remains at approximately 15%, and amid rising geopolitical risks, establishing decentralized energy systems at the household and community level is an urgent matter of economic security. However, many homeowners and municipalities have been reluctant to adopt conventional solar panels because they compromise building aesthetics and harmony with surrounding streetscapes. Monochrome is a rare company that has squarely tackled the challenge of “advancing decarbonization while preserving landscapes” — previously considered a contradiction — transforming design quality itself into a driver of adoption.
The real-world implementation of the regional energy circulation model in Hakuba Village — a system in which public facilities generate electricity that is consumed by surrounding commercial establishments — is also an extremely significant achievement. Now that local energy production and consumption has been demonstrated in a single municipality, expansion to other regions including Niseko Town and Yokosuka City is already underway. Increasing energy self-sufficiency at the regional level directly enhances resilience during disasters and holds great potential as a social model that simultaneously achieves decarbonization and regional revitalization.
At the same time, from a business perspective, the company’s structure — using hardware sales as an entry point while building a recurring revenue base through the integration of retail electricity and HEMS — creates long-term customer relationships and constitutes a robust business model that supports sustainable growth.
Since our previous investment, the team led by CEO Umeda has demonstrated outstanding execution, including a shift to a highly profitable structure through supply chain reform and a track record of social implementation involving local governments. We will continue to provide strong support to Monochrome as it achieves step-change growth while simultaneously addressing multiple social challenges: decarbonization and landscape preservation, energy security and regional revitalization. (Author: Kawano)