A new electricity retailer that encourages consumers to reduce their power usage and use more renewable energy has opened for business.

Mojo Power promises to “shake up the energy market” by offering access to low wholesale energy prices via a subscription model with a flat monthly fee.

The company has been given a $5 million head-start by the Southern Cross Renewable Energy Fund, an investment fund jointly created by The Australian Renewable Energy Agency (ARENA) and Softbank China Venture Capital.

ARENA CEO Ivor Frischknecht said Mojo was a homegrown Australian business and the world’s first energy retailer which doesn’t rely on selling more power for more profit.

“Mojo supplies electricity to its customers at cost and charges a fixed monthly fee. This allows Mojo to focus on working with customers to unlock cheaper energy bills through solar, storage and energy efficiency,” Mr Frischknecht said.

Mojo provides every customer with a smart meter to help them monitor and manage their energy usage. Mojo says it will use this information to recommend solar and energy storage solutions, with a view to reducing its customers’ reliance on the grid and increasing the penetration of renewable energy generation. It also plans to offer its own solar and battery storage products.

Mr Frischknecht said: “Customers will be readily able to access more information about their energy usage and will be better placed to take the steps needed to run smarter homes.

“If Mojo successfully taps into the Australian market, it could encourage even more households to invest in solar, which in turn will help drive down costs. It also has the potential to accelerate the growth of Australia’s emerging battery storage industry as consumers look for more value from their rooftop systems.”

ARENA says the funding will help Mojo with market-entry and business expansion activities.