Investing in a niche market

Jan-Jaap van Os (co-founder and CTO of Exasun) and Kristie Dekkers (Investment Associate at Invest-NL) talk about a challenging niche market.

Since its founding in 2015, Exasun has played a leading role in the BIPV solutions market. Jan-Jaap passionately discusses a great product: “Exasun makes building-integrated solar panels for residential construction. These are used in new builds and renovation projects. With Exasun's solutions, a roof is made watertight and capable of generating energy without the use of roof tiles. It is aesthetically superior to the conventional panels that are often mounted on a roof. By using a smaller panel, it becomes possible to work optimally around roof windows and dormers, maximising the entire roof surface for energy generation.” Kristie adds: “Exasun's product initially appeals to a niche market, a segment of consumers who prefer not to have solar panels on their roofs for aesthetic reasons. Additionally, it is attractive to both private individuals and the construction sector, given that – especially due to the strict requirements for energy-neutral houses – much more power can be extracted from a roof because more surface area can be utilised. And more power from a roof is urgently needed, considering the increasing electricity demand per household.”

Intensive Collaboration

The relationship between Exasun and Invest-NL is relatively young. Kristie: “We had been talking with Exasun for some time before we officially started the investment process because we were still looking for a suitable private co-investor. Eventually, ABN AMRO Sustainable Investment Fund showed interest, and we took on the deal together. Jan-Jaap: “From the very first conversation, we got a very clear picture of Invest-NL's agenda: making an impact is central. This was obvious in the process leading to the investment but is also the focus after the investment. There is a clear drive to get things done and a positive critical perspective to sharpen us as management. Collaborating on that ambition is very welcome.”

It is no easy task that Exasun stands for. The world has changed significantly recently; inflation, high energy prices, and a rush for solar panels. Kristie: “While we are obviously pleased about the latter from an impact perspective, it also puts the necessary pressure on producers like Exasun to keep the supply chain in order. All in all, there is a lot of urgency and ambition to work on this together.”

As mentioned, the collaboration is intensive. What Exasun perceives as particularly valuable in the partnership is the available resources supporting current topics. There is also consultation with Business Development from Invest-NL on matters such as solar technology and ESG (Environmental, Social, and Governance). Jan-Jaap: “The focus on the ESG agenda and providing a framework to map and improve ESG performance is a distinguishing aspect of our collaboration. Invest-NL shows a very proactive attitude in supporting Exasun with knowledge and costs where needed. This has taken our company three steps forward.”

What makes Exasun unique is that the products are made in the Netherlands. Producing solar modules has not many success stories in Europe due to the intense competition from Asia. This discourages investors from entering quickly. Kristie: “We dare to indeed take the plunge. Conviction: once one (successful) sheep crosses the river, more will follow. Fortunately, the European Commission is now also strongly committed to ‘reshoring of PV production’ as they want to be less dependent on the rest of the world. This creates opportunities for a strong solar industry in the Netherlands.”