South Africa is facing a worsening energy crisis that has led to severe power shortages. To prevent a nationwide grid collapse, daily electricity rationing has become necessary. According to Eskom, the state-owned power generator, the country is experiencing significant power deficits, at times surpassing 6,000 megawatts.
Similar energy challenges are prevalent in most African countries, creating a demand for solutions provided by clean tech startups. A three-year-old startup, Hohm Energy, which connects homeowners and businesses with accredited solar installers, product suppliers, and embedded solar finance in South Africa, has secured an $8 million seed investment, the largest of its kind for a tech startup in South Africa.
The investment, led by E3 Capital and 4DX Ventures, marks a significant milestone for Hohm Energy. The startup aims to provide an alternative and sustainable energy source for over 7 million households connected to South Africa’s national grid.
Hohm Energy offers a software and marketplace model that connects stakeholders in the rooftop solar market value chain, streamlining design, scheduling, and procurement for installers while improving accessibility for buyers. The startup’s ultimate goal is to empower homeowners to harness clean, renewable energy despite the complexities of the industry.
One of Hohm Energy’s unique features is its “Home Ranger” supervision for each installation, ensuring technical and legal compliance. The platform also provides solar installers with tools and workflows to streamline their work, and access to quality jobs that originate and finance through the marketplace.
Before launching Hohm Energy, CEO Tim Ohlsen recognized the scalability challenges of vertically-integrated solar service provider models and pivoted to an asset-light platform that automates processes and connects stakeholders. The startup has facilitated thousands of tailored solar rooftop designs and significant finance applications to retail banking partners, resulting in a 4x to 5x increase in GMV and revenue since its launch.
As Hohm Energy deepens its presence in South Africa, the startup remains committed to its climate fintech strategy, tech development, and training local solar installers. The investor community is also optimistic about the startup’s potential to address energy supply challenges and create a one-stop shop for green solutions for residential customers.
Image Credits: Hohm Energy
