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German startup Enpal raises €215 million in funding
Enpal, which operates in the field of green energy, conducted a round of financing. As a result, it was able to get 215 million euros of investment, thanks to which the business valuation reached 2.2 billion euros. The main investor was the TPG Rise Climate fund. Prior to that, the company received €855 million in refinancing funds at the end of 2022. The money was allocated by a number of investors, including Blackrock, ING, UniCredit, and others.
Enpal leases systems for solar generation, and the company takes care of their maintenance and technical advice. Per month Enpal installs 2 thousand photovoltaic systems, the total number of customers in Germany is more than 30 thousand. Despite the good prospects for development, the management is not yet considering an IPO.
The company was founded in 2017 and only reached profitability in 2022. Last period’s profit was about 400 million euros, helped by the crisis in the traditional energy market. Sanctions on the largest supplier of gas and oil forced Germany and other European countries to look for new options to provide energy, and renewables were one of them. In addition, hydrocarbon prices remain extremely high, and the German government is doing all it can to accelerate the energy transition.
According to recent surveys, about 75 percent of homeowners are considering installing rooftop solar panels to meet their family’s needs. One in five German citizens plan to do the installation during 2023. Such changes have increased demand for photovoltaic systems, of which Enpal is a supplier. The number of applications for PV installation has increased noticeably, and many investors have taken notice of the promising niche.
It should be noted that Enpal is one of the first companies in Germany, which operates in the renewable energy sector. Taking into account the growing demand, the company plans to invest the received funds in the purchase of 30 thousand solar systems and energy storage stations. Enpal itself does not manufacture products but is only engaged in supply and service.
In the future, Enpal plans to enter the international market, but for now, it wants to focus its efforts on providing German customers with quality service. The company offers favorable conditions of cooperation. The system’s service life is about 40 years, for customers who have been using the complex from Enpal for 20 years, there is an opportunity to buy it back for 1 euro. At the same time, a number of experts believe that the photovoltaic cell rental model is not profitable for customers, as maintenance costs increase over time.