Hohm Energy secures $8 million in seed funding to help scale the adoption of rooftop solar in South Africa. former backers, E3 Capital and 4DX Ventures as you should know led the round with participation from Breega, E4E Africa, TOrg, Tekton Ventures, Sunu Capital, Musha Ventures, and Climate Capital Ventures.
Hohm Energy Secures $8 Million in Seed Funding
As per a statement that is obtained by Techpoint Africa, the firm will utilize the said funding to speed its work on its “new cutting-edge climate Fintech strategy,” which will in question help promote technological advancement, product innovation, and solar installer skill development.
The energy platform ensures that the latest development will enhance the reliability, affordability, and accessibility of rooftop solar installations, paving the way for widespread adoption throughout the region and representing a significant milestone for South Africa’s technology and solar sectors.
Founded in 2021 by Tim Ohlsen and Emir Gluhbegovic, Hohm Energy empowers homeowners and businesses in South Africa to embrace solar solutions by offering accredited solar installers, product suppliers, and integrated solar financing.
Hohm Energy Connects All Stakeholders in the Solar Value Chain
Utilizing its proprietary software platform and marketplace, the startup connects all stakeholders in the solar value chain. This platform enables solar installers to design, manage, finance, and procure solar projects, while also allowing customers to digitally evaluate their properties’ solar energy needs and access credit financing for rooftop solar installation.
Recognizing the financing barrier to solar energy adoption in the country, Hohm Energy has established ongoing partnerships with major South African retail finance institutions, including Investec, Nedbank, MFC, FNB, Wesbank, and Capitec, to expand access to secure structured financing for its customers.
The Company Have Generated Over 17,000 Customized Solar Rooftop Designs
To date, the company claims to have generated over 17,000 customized solar rooftop designs using its solar proposal engine valued at $190 million, with $90 million in finance applications submitted to its retail financial partners.
With ambitions to facilitate rooftop solar installations for up to 7.7 million homes in South Africa, Hohm Energy also aims to achieve profitability by the end of 2024.
The Need for Scalable and Sustainable Alternatives in South Africa’s Energy Landscape
Commenting on the investment, Tim Ohlsen, CEO of Hohm Energy, emphasized the urgent need for scalable and sustainable alternatives in South Africa’s energy landscape, given the current challenges facing the country’s energy system, exemplified by the struggles of state-owned Eskom in providing reliable electricity.
South Africa’s Escalating Energy Crisis
This investment comes at a critical time for South Africa, amidst an escalating energy crisis, positioning Hohm Energy to offer alternative energy solutions to individuals and businesses in the region. Similarly, Teraco’s recent announcement of its plan to construct a $106 million solar plant reflects the growing recognition of renewable energy’s role in addressing South Africa’s power challenges.
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