Hohm Energy, a pioneering South African startup dedicated to facilitating the adoption of solar energy for homeowners and businesses, has successfully secured US$8 million in seed funding to fuel its expansion efforts. Founded in 2021 by Tim Ohlsen and Emir Gluhbegovic, Hohm Energy has developed an innovative software platform and marketplace that seamlessly connects all stakeholders in the solar energy ecosystem.
The company is at the forefront of addressing the unique challenges within South Africa’s rooftop solar market. By leveraging advanced technology, Hohm Energy simplifies the solar installation process, from design and scheduling to procurement, for installers. It also improves the buying experience for consumers, effectively overcoming common hurdles such as project delays, installation errors, regulatory compliance issues, and financing barriers.
The recent seed funding round, amounting to US$8 million, was spearheaded by E3 Capital and 4DX Ventures. The round also saw participation from a diverse group of investors, including Breega, E4E Africa, TO.org, Tekton Ventures, Sunu Capital, Musha Ventures, and Climate Capital Ventures, showcasing strong confidence in Hohm Energy’s mission and its potential to revolutionize the solar energy market in South Africa and beyond.
Hohm Energy is set to utilize its recent US$8 million seed funding to drive the expansion of rooftop solar across the region, focusing on a novel climate fintech approach. This strategic move aims to enhance its technology, foster product innovation, and improve solar installer training, ultimately making rooftop solar energy solutions more accessible, reliable, and affordable for a broader audience. The startup has already made significant strides, creating over 17,000 tailored solar rooftop designs valued at US$190 million through its solar proposal engine and facilitating over US$90 million in finance applications with its retail banking partners.
For solar installers, Hohm Energy offers a platform that builds trust and streamlines the entire process of designing, managing, financing, and procuring solar projects. Customers benefit from a digital assessment of their solar energy needs, coupled with access to credit financing and a comprehensive order and fulfillment process that includes post-installation services like repair and maintenance.
Hohm Energy has established partnerships with the majority of South Africa’s leading retail financial institutions, including Investec, Nedbank, MFC, FNB, Wesbank, and Capitec. These collaborations ensure that customers can utilize the platform’s finance and credit scoring processes to obtain structured financing options from these banks. Additionally, Hohm has introduced a solar subscription service for South African households in collaboration with Glint. This service democratizes access to solar energy, offering a seamless digital purchasing experience and making solar adoption more feasible and straightforward for everyone.
“The energy infrastructure in South Africa is currently facing significant challenges. Climate technology emerges as a crucial solution, offering scalable and sustainable alternatives. Our comprehensive software platform and fintech marketplace play a critical role in improving the efficiency of rooftop solar installations, thus contributing to alleviating the current load-shedding crisis. We are privileged to partner with distinguished global investors who align with our vision and passion, supporting our goal to scale our impact,” stated Tim Ohlsen, CEO of Hohm Energy.
Vladimir Dugin, a senior partner at E3 Capital, expressed his excitement about investing in Hohm Energy, stating, “Hohm’s technology-driven approach places it at the forefront of South Africa’s transition to green energy. The team’s unique capability to serve as a comprehensive solution provider for green energy needs of residential customers is instrumental in tackling the ongoing energy supply challenges.”
Peter Orth, managing partner at 4DX, shared his strong conviction in Hohm Energy’s mission to expand rooftop solar adoption across South Africa and potentially further afield. He noted, “Having observed the success of similar initiatives in various global markets, we are confident in Hohm’s potential to address the critical needs of South Africa’s electrical grid. We are excited to support Tim and his team at this pivotal moment in their journey.”
In the wake of this investment, Hohm Energy is set to introduce the Hohm School program, aimed at training and empowering local solar installers. This initiative will be guided by the Hohm Energy Standard for Solar Systems Installations (HESSSI), promoting excellence and consistency in solar installations throughout the nation.
