South African solar marketplace, Hohm Energy, is set to accelerate the adoption of rooftop solar with a significant funding injection of R153.8 million. The company, co-founded by Tim Ohlsen, successfully concluded its seed funding round, raising a total of $8 million.
Funding Boost and Growth Plans
This substantial seed round, considered the largest for a tech start-up in South Africa, was led by E3 Capital and 4DX Ventures. Notable participation came from investors including Breega, E4E Africa, TO.org, Tekton Ventures, Sunu Capital, Musha Ventures, and Climate Capital Ventures.
Tim Ohlsen revealed that the funds will play a pivotal role in scaling Hohm’s model. The focus is on enhancing technology, fostering product innovation, and providing skill development for solar installers. The ultimate goal is to make rooftop solar more accessible, trusted, and affordable for a broader audience.
Bridging the Finance Gap
Hohm aims to address the crucial issue of access to finance, a significant hurdle for both homeowners and installers. The company plans to digitize and automate the financing process, making it more affordable. This strategic move aligns with the growing demand for solar installations, driven in part by increased load-shedding in 2023.
Evolution of Solar Market in South Africa
Last year witnessed a surge in South Africa’s solar market, responding to prolonged power cuts that hindered economic growth. Hohm Energy, established in July 2021, positions itself as a climate fintech company. It facilitates solar adoption by connecting homeowners and businesses with accredited solar installers, suppliers, and embedded solar finance.
Future Outlook and Global Expansion
As solar becomes more affordable, Hohm envisions a future where clean energy includes electric vehicles, insulation, energy-efficient lighting, smart home devices, and green appliances. The company, poised for sustainable profitability in the current year, plans to expand its platform and business model to serve South African households.
Vladimir Dugin, senior partner at E3 Capital, expressed excitement about investing in Hohm Energy, recognizing its tech-driven approach in advancing South Africa’s green energy revolution. The company plans to launch the Hohm School program to train and empower local solar installers, marking a strategic move towards broader renewable energy adoption. Hohm Energy’s mission is to drive rooftop solar adoption in South Africa and beyond, addressing challenges around energy supply and contributing to the global energy transition.
Source：http://www.itweb.co.za
