According to EU-Startups, London-based Fuse Energy has raised an additional €59 million, led by Lowercarbon and Balderton Capital, pushing its valuation to a hefty €4.2 billion. Founded in 2022 by ex-Revolut execs Alan Chang and Charles Orr, the company has achieved €341 million in annual recurring revenue as of December 2025, growing 8x year-on-year and becoming cash flow positive. It already supplies power to over 200,000 UK households and claims to save them about €228 a year. The new cash will fuel expansion into Ireland, Spain, and the US. Furthermore, Fuse is preparing to launch its first consumer hardware—a micro solar and battery solution—and will publicly roll out a demand-shifting rewards program called The Energy Network in January 2026.
The vertical integration playbook
Here’s the thing: Fuse’s entire thesis is about owning the whole stack. From building renewable sites to generation, trading, supply, and now even consumer hardware, they want to cut out every middleman. It’s the same “vertical integration for efficiency” playbook we’ve seen in tech, but applied to one of the world’s oldest and most fragmented industries: energy. They’re basically arguing that the traditional model—with separate generators, traders, and suppliers—is inherently bloated. By controlling it all, they say they can operate with “relentless focus on efficiency” and deliver power about 10% cheaper. It’s a massive bet, and this funding round is a huge vote of confidence that the model works at scale.
A broader European EnergyTech wave
This isn’t happening in a vacuum. The article points out nearly €390 million in disclosed funding into European energy startups just this year. You’ve got everything from Spark Cleantech’s industrial solutions in France to PowerUP’s hydrogen generators in Estonia. The activity spans software, hardware, and big infrastructure bets like Return’s €300 million for battery storage in the Netherlands. It shows a continent-wide scramble to rebuild the energy system. Fuse’s model sits at the ambitious, capital-intensive end of that spectrum. They’re not just optimizing part of the grid; they’re trying to be the grid, or at least a major new vertically integrated player on it. That requires serious war chests, hence the billion-euro valuation.
The hardware and grid balancing gambit
Now, the move into “micro solar and battery” hardware is fascinating. It’s one thing to sell cheaper power, but it’s another to put a physical product in someone’s home. This is where they start looking less like a pure utility and more like a tech-enabled energy ecosystem. The hardware helps them balance the grid—by storing excess solar or shifting usage—which in turn lowers system costs. Paired with The Energy Network rewards program, they’re creating a two-way relationship with customers. It’s smart. It turns passive bill-payers into active grid participants. But it’s also a massive operational leap. Manufacturing, logistics, installation, support—it’s a whole new world of complexity. If they can pull it off, the competitive moat gets a lot deeper.
What’s next and the big question
So, with this cash, they’re pushing into new markets like the US and Spain. International expansion in energy is brutally hard, with different regulations, grids, and competitors in every market. But their Revolut pedigree suggests they’re no strangers to navigating complex, regulated landscapes quickly. The real question is: can this vertical integration model maintain its efficiency advantages as it scales globally? Sometimes, owning everything can make you slower, not faster. But with €341 million in ARR and profitability already, they’ve got a formidable head start. They’re not just selling a vision anymore; they’re selling results. And in an era of rising AI-driven energy demand, as investor Daniel Waterhouse noted, building a “resilient” new system from scratch looks more prescient than ever. It’s a bet on a completely different energy future, and a lot of smart money is saying it’s a bet worth making.
