Solar Water Solutions

Company profile

Founded in 2015 and based in Espoo, Finland, Solar Water Solutions (SWS) is dedicated to addressing the global water scarcity crisis with innovative and sustainable technology. As the water demand increasingly outstrips supply, SWS delivers a breakthrough solution through its unique, solar-powered desalination systems that produce high-quality drinking water without the need for fossil fuels, batteries, or grid connections, making them particularly well-suited for remote and off-grid locations. 

Following an extensive R&D and pilot period up until 2023, SWS transitioned to commercial operations with strong momentum. During 2024, the company’s pilots turned into commercial projects and saw a significant revenue growth, with sales increasing by over 130%, and the company achieved break-even profitability after years of development. The growth is set to accelerate further in 2025, with a projected sales increase of over 163%, driven by ongoing projects in Africa, Oceania, and Scandinavia, all contributing to profitable expansion. 

SWS’s modular and scalable systems cater to diverse needs—from private properties to municipal infrastructure—and have garnered trust from industry partners like Danfoss, highlighting the technical excellence of its offerings. The company’s commitment to profitable growth aligned with ESG principles is a top priority, focusing on sustainable and impactful solutions. Delivering safe water already with 12.8 million liters produced daily, our solutions have a direct, positive impact on many underserved communities, increasing health and productivity. End customers include municipalities, food and beverage companies, hotels, and rural water infrastructure projects. 

Looking ahead, SWS aims to expand its market reach into the Mediterranean and Asian regions starting in 2025, positioning itself as a key player in the global push for efficient, sustainable water solutions. SWS's solar-powered projects already save 185,000 liters of diesel each year, equivalent to the fuel consumption of 96 trucks driving around the globe. Additionally, these efforts prevent 495 tons of CO2 emissions annually, comparable to the carbon absorption of a 40-hectare forest—about 40 soccer fields filled with trees. The positive impact is projected to increase by 2.5 times next year. The mission is: decentralized, affordable, and accessible clean drinking water from seawater or any source—powered by a free, nature's giant fusion reactor, the sun. Engineered in Finland to replace some of the planet's largest polluters.

Company Info 

Products and services

Solar Water Solutions can turn seawater, or any undrinkable water into drinking water with direct solar power. The purification works with the reverse osmosis process, which is the most common and efficient way to purify water. Reverse osmosis requires constant pressure, and solar energy has previously been too variable energy source for this. The technology developed and patented by Solar Water Solutions solves the problem: the process can be carried out entirely with solar energy, which enables the production of clean water from seawater with lower life cycle costs than any other solution. No more diesel generators or high electricity bills, no more transporting of water. Water in remote settings is now affordable, local, safe, and sustainable. 

The company solves the energy cost and transportation problems in the most efficient way: 

• A conventional water desalination system (making clean water from sea or contaminated water) needs a lot of electricity which is expensive. In remote locations, such as islands, deserts, and rural areas, the most common source of energy is diesel generators. They have high fuel costs and high CO2 emissions. Solar energy doesn’t cost a penny. 
• Water is costly to transport, and building pipeline network is expensive. With a decentralized solar powered system you can make your own clean water. 

Solar Water Solutions offers a comprehensive range of small- and mid-sized modular, solar-powered desalination systems designed to produce clean drinking water from both seawater and brackish sources, without relying on fossil fuels, grid power, or battery packs. The SolarRO series, powered by SWS’s patented reverse osmosis technology, delivers a sustainable solution to water scarcity with high efficiency, direct solar operation, automatic pressure control, and a simplified design, significantly reducing the complexity compared to traditional desalination systems. SWS’s systems are tailored to meet diverse needs: smaller units provide reliable water for private properties, while larger systems support entire rural communities.

The modular design is infinitely scalable by installing multiple units in parallel to required water needs with a single unit capable of producing up to 500,000 liters of clean quality water per day. This adaptability makes SWS’s solutions ideal for use across a variety of settings, from remote islands to rural areas, and particularly well-suited for decentralized locations where expensive infrastructure development can be avoided. The company's local service and installation network ensures quick and seamless equipment commissioning, as well as efficient after-sales support. 

With increasing demand for off-grid water solutions, especially in emerging markets and arid regions, SWS’s technology offers a significant growth opportunity. Additionally, the resilient, zero-carbon operation enhances preparedness for natural crises, making SWS’s products a strategic choice for ensuring water security in an unpredictable climate landscape.

Three patent families ensure the freedom to operate and help to build distribution partnerships with leading water treatment specialists in the target markets. The patent families are related to the one-of-a-kind mechanical adaptive valve system technology ANVS®. It automatically maintains the pressure constant, even when the feed flow to the reverse osmosis membranes is fluctuating due to the variable power obtained from the solar PV panels. The strong and comprehensive international patent portfolio enables Solar Water Solutions to scale up internationally and keep its competitive edge. 

Business model

The main path to expanding business is a distributor partner path. The objective is to foster current regional partnerships with local water treatment companies and establish new ones with a focus on remote municipal water infra projects, natural disaster response, hotel, food & beverage sector and private properties. Each distribution partner is a water treatment specialist company in the area, with turnkey solutions and O&M services for after-sales support. They are large enough to participate in local tenders with their local reference portfolios. Current key geographical focus areas are the Pacific Islands, Kenya and Scandinavia. In 2025 the objective is to enter the Mediterranean and Asian markets as well. 
 

SWS’s customer segments in priority order: 

1. Municipal and other institutional customers that need clean water for general population in decentralized,
   off-grid remote areas 
2. Natural disaster preparedness and response 
3. Hotels & resorts and residentials in remote locations 
4. Agriculture and food & beverage industry customers 
5. Private properties in areas of dispersed settlements 

SWS’s competitive positioning is strengthened by its unique technology and industry expertise, which create high barriers for new entrants. Patented technology, extensive field experience with local service partners, and a proven product in challenging environments give SWS an advantage over competitors. By leveraging its robust partner network and focusing on regions with high water scarcity, SWS is well-positioned for growth in the global desalination market. 

Market

The desalination market is rapidly expanding, driven by increasing global water scarcity, population growth, and climate change. Many highly populated communities and islands, for example in Asia and Oceania, lack municipal water infrastructure and grid connections. SWS’s stand-alone systems enable to build decentralized water infrastructure in a most sustainable way. Overall, the industry is shifting toward smaller, decentralized systems that provide localized, off-grid solutions to avoid costly water transportation.

This trend is especially prominent in emerging and developing regions, where financial resources and infrastructure for large-scale plants are often lacking. Solar-powered systems are gaining traction as an economical and sustainable alternative to high-operational-cost fossil fuel systems. In addition, the world's largest water companies are focusing on sustainability, decentralized water purification, and renewable energy sources in their strategies.   

Solar Water Solutions operates at the forefront of this shift, uniquely positioned with its patented SolarRO technology. By eliminating the need for fossil fuels, batteries or grid connections, SWS provides cost-efficient, modular solutions that produce clean water. Lifecycle costs are as low as €0.6 per 1,000 liters, offering lower operational and life-cycle costs compared to other decentralized desalination systems. 

SWS has demonstrated proven reliability and scalability through successful use cases in regions like Kenya, Kiribati, Madagascar, Namibia and Tuvalu. Strong barriers to entry, patented technology and extensive experience, further cement its competitive edge. As water scarcity becomes a critical global issue, SWS is well-positioned to capture significant market share and drive sustainable growth. 

Management

Distribution of company shares

Company structure

Solar Water Solutions is a single entity without subsidiaries owned directly by its shareholders. Solar Water Solutions has two share classes, A shares and B shares. The A shares are founder shares while the B shares are investor shares. The B shares have a 2x liquidation preference over the A shares.

Investors in this funding round are offered B shares of Solar Water Solutions.

Use of funds

• Strengthening Production Capacity (40%): Component stock management for faster delivery capability for current large projects in Kenya and Scandinavia. New positions (engineering and electrician) for manufacturing process enabling SWS to meet the new order pipeline. 
• Expanding Sales Team (20%): To support scaling efforts, SWS will invest in growing its technical sales team, focusing on building regional expertise, securing new distribution partners and fostering sales in target markets. 
• Market Expansion into Mediterranean and Asia (20%): Funds will support SWS’s entry into the Mediterranean and Asian markets, starting in 2025. 
• Strategic Partnerships (20%): By securing funding, SWS will enhance its position to negotiate partnerships with larger water companies with a stronger balance sheet, expanding access to better sales channels and unlocking new customer bases. 

Actual and planned figures

Get an insight into SWS's financial figures, such as turnover and earnings development. Learn more about the growth forecast.

Profitability is in sight

The company expects to be profitable in 2024. The revenue estimate for 2024 is €1.4M and €3.8M for 2025; mostly from the on-going large government projects. In addition, the company sees additional sales growth opportunity for 2025 from the current order pipeline (municipalities, food&beverage and hospitality sector).

Rapidly growing market and a global megatrend

By 2030, the global demand for fresh water is expected to exceed supply by 40%, making sustainable energy solutions more critical than ever. Over $1.4 trillion will be invested in expanding and improving global water infrastructure in the next four years (by Morgan Stanley). The market spend on small to mid-sized decentralized desalination systems is estimated with a compound annual growth rate (CAGR) of 30.5%.

A key challenge is that desalination is a very energy intensive process and currently rely on expensive fossil fuels. Solar as a power source will be the future trend with zero energy costs and emissions. Solar Water Solutions technology enables the lowest life-cycle costs in the small to mid-sized decentralized desalination market.

Scale-up opportunity through global partners

Due to the strong patent portfolio, the company’s technology is very attractive to large water treatment companies who can offer the technology to their existing and new clients.  SWS has now on-going active discussions with large water companies for a strategic partnership, they could offer their clients decentralized solar powered systems, enabling SWS to scale up the technology efficiently. With right strategic partners and double-digit sales growth Solar Water Solutions objective is to become the leader in decentralized solar desalination and become over €100M company by 2030. 

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In this update section you will find new, project-relevant information that we receive.

Invesdor does not conduct a separate review of information received after the start of the financing phase.

UPDATE 05.12.2024: Update to KIIS

It has come to our knowledge that some information contained in the KIIS of Solar Water Solutions Oy was erroneous.

The errors related to financials for the years 2022 and 2023, which were represented in a reverse order. Further, the EBITDAs for the years 2021, 2022 and 2023 have been recalculated. The information has now been rectified by the project owner and the updated KIIS has been uploaded on the platform. Please note that you have the right to revoke the subscription offer you have made to this project.