Hohm Energy, a South Africa-based solar energy startup, is making significant strides in combating the nation’s persistent load shedding issues with its recent success in securing an impressive $8 million seed round. This substantial funding, reported as the largest ever raised by a South African tech startup at this stage, marks a pivotal moment for Hohm Energy’s ambitious expansion plans. Spearheaded by prominent investors E3 Capital and 4DX Ventures, the investment aims to fuel the company’s efforts in scaling up its innovative rooftop solar installation product.
Hohm Energy was founded in 2021 by Tim Ohlsen and Emir Gluhbegovic and has quickly emerged as a frontrunner in South Africa’s renewable energy landscape. The company’s innovative platform boasts two distinct offerings tailored to address the pressing needs of consumers and solar installers alike.
Firstly, it provides customers with a seamless digital solution for assessing their properties’ solar energy needs, streamlining the process with intelligent technology. Additionally, Hohm Energy offers access to credit financing options specifically designed for rooftop solar installation, making sustainable energy solutions more accessible to a broader demographic.
Moreover, the platform aids solar installers in efficiently designing, managing, financing, and procuring solar projects, thereby revolutionizing the renewable energy market with its novel approach.
According to the company’s data, with 17,000 custom solar rooftop designs valued at a staggering $190 million and financing applications totalling $90 million for the implementation of these designs, the company has solidified its position as a key player in the renewable energy market.
To facilitate financing for these designs, Hohm Energy has forged strategic partnerships with several prominent South African finance institutions. Through these collaborations, Hohm’s customers can leverage the platform’s finance and credit scoring capabilities to integrate the financing application process.
Tim Ohlsen, co-founder of Hohm Energy, highlighted the importance of addressing financing barriers in the renewable energy space. He noted, “We realised that although there is a demand for solar energy in South Africa, sometimes financing is a hurdle.” By integrating fintech solutions into its platform, Hohm Energy aims to activate even more rooftop solar installations, driving sustainable energy adoption across the country.
With the recent $8 million seed funding, Hohm Energy is positive to enhance product offering and expand its reach. The company plans to invest in technology advancements, product innovation and skills development for solar installers. With ambitious goals in sight, Hohm Energy aims to facilitate rooftop solar installations for 7.7 million homes in South Africa, setting a course toward profitability by the end of the year.