South African solar energy startup Hohm Energy has raised an $8 million seed round to scale its rooftop solar installation product. The funding, the largest seed round ever raised by a South African tech startup, was led by E3 Capital and 4DX Ventures.
Founded in 2021 by Tim Ohlsen and Emir Gluhbegovic Hohm Energy’s platform comprises two offerings; a way for customers to have their properties’ solar energy requirements determined digitally and a way to get access to credit financing for rooftop solar installation. The platform also allows solar installers to design, manage, finance and procure solar projects.
Hohm Energy claims to have generated over 17,000 custom solar rooftop designs worth $190M and $90M in financing applications for the implementation of the designs.
To facilitate financing for the designs, Hohm Energy has partnerships with several South African finance institutions for customers to secure structured financing.
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Through the partnerships, Hohm customers can use the platform’s finance and credit scoring to apply for financing. “We realised that although there is an appetite for solar energy in SA, sometimes financing is a hurdle,” Ohlsen told TechCabal. “The fintech aspect will help to drive even more rooftop solar installations.”
The company will use the funding to scale its product offering across the board. This will include its tech, product innovation and solar installer skills development. Ohm Energy aims to facilitate rooftop solar installations for 7.7 million homes in South Africa and claims to be on track to reach profitability by the end of the year.
