Berlin-based green energy unicorn Enpal wants to give its heat pump segment, which was launched in 2023, a major boost, and is confident of success in this area. „We believe that we will be the largest heat pump installer in Germany in two to three months at the latest,“ said CFO Jochen Cassel on the occasion of the publication of key earnings figures from the past financial year. While the start-up sold 1,000 units of the low-CO2 heating alternatives in 2023, the target for this year is already 4,000 to 5,000. According to Cassel, the company is well on the way to achieving this target.

However, the ramp-up of the heat pump business, together with the entry into the Italian market and higher customer acquisition costs, had a negative impact on operating profit last year. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) stagnated at the previous year's level of around 21 million euros. At the same time, sales more than doubled to 905 million euros compared to 2022. While the operating cash flow was positive in 2023, the net profit for the year was slightly negative, according to the CFO of the start-up, which was founded in 2017.

2024 will now be the „year of transformation for Enpal“, says Cassel. The solar system rental company not only wants to continue investing in the heat pump sector, for which it had budgeted a three-digit million sum in April. Money will also be spent on ramping up the Italian business, and strengthening the partner business, in which Enpal also sells its products via partners such as insurance companies. The platform business, in which the start-up sells hardware and services to external installers, is also to be boosted.

„All of this will probably ultimately be reflected in the results“ says Cassel. „However, it is crucial for us to implement the measures this year, as the core market for small roof systems has slumped sharply this year.“

Regulatory uncertainties such as the debate surrounding the Building Energy Act, and the controversial subsidy programme for solar charging, have recently caused the industry to struggle. There is already a strong consolidation trend in the market, said Cassel. There are many competitors who are fighting for survival, or some who have not made it. However, following the measures planned this year, Enpal is expected to be able to „grow strongly“ again in 2025, said the CFO.

Enpal provides private customers with energy systems consisting of solar systems, battery storage, electric car charging stations, heat pumps and corresponding operating software for rent or hire purchase. The start-up takes care of installation as well as maintenance and repair. The business model is based on debt-financed growth, in which special purpose vehicles (SPVs) finance the sale of solar systems with asset-backed securities (ABS). In May, the Berlin-based company raised 1.1 billion euros in fresh debt capital.