South Africa is facing a severe energy crisis that threatens to disrupt the lives and livelihoods of millions of people.
The country’s power grid is unable to meet the growing demand for electricity, resulting in frequent blackouts and load shedding. According to Eskom, the state-owned utility company, South Africa sometimes experiences a power shortfall of more than 6,000 megawatts, which is equivalent to the output of six large power plants.
The situation is not better in other African countries, where access to reliable and affordable electricity is still a major challenge.
According to the World Bank, only 43% of the population in sub-Saharan Africa has access to electricity, and the region has the lowest per capita electricity consumption in the world.
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The solution: a marketplace for rooftop solar
To address this problem, a South African startup, Hohm Energy, has developed a platform that connects homeowners and businesses with accredited solar installers, product suppliers, and embedded solar finance. The startup aims to make rooftop solar more accessible, affordable, and convenient for customers while also providing solar installers with tools and workflows to streamline their operations and grow their businesses.
Hohm Energy was founded in 2021 by Tim Ohlsen and Emir Gluhbegovic, who has a background in the solar industry and digital utility space. The startup has recently raised $8 million in seed funding, which is the largest seed round for a tech startup in South Africa, according to the company. The round was led by E3 Capital and 4DX Ventures, with participation from Breega, E4E Africa, Musha Ventures, Climate Capital Ventures, TO.org, Tekton Ventures and Sunu Capital.
The startup claims to have a potential market of over 7 million households connected to the national grid in South Africa, where rooftop solar is estimated to be a $51 billion opportunity. Hohm Energy’s platform allows customers to get a personalised quote for their solar system based on their property’s location, roof size, energy consumption, and budget. The platform then matches them with a trusted solar installer, who handles the installation, maintenance, and warranty of the system. Customers can also access credit financing options through Hohm Energy’s partners, making the upfront cost of solar more affordable.
The differentiation: a Home Ranger for quality assurance
One of the key features that sets Hohm Energy apart from other solar platforms is its Home Ranger service. A Home Ranger is a trained and certified professional who supervises every installation initiated through Hohm Energy’s marketplace. The Home Ranger conducts a comprehensive assessment of the property, ensuring that the solar system meets the technical and legal requirements and that the customer is satisfied with the outcome.
Hohm Energy’s CEO Tim Ohlsen said that the Home Ranger service is designed to provide customers with peace of mind and confidence in their solar investment. “Purchasing a solar system can inevitably be a very costly investment. Our average order value ranges between $8,000 [and] $12,000. We have done extensive installations, too, so it is not something people haphazardly decide on,” he said. “It is something they take a lot of interest in, and it’s just a tough place for them to navigate. We do a lot of research so that when they come into the marketplace, we match them with a trusted solar installer, so they don’t have to worry about the quality of the installation.”
The vision: to scale the solar industry in Africa
Hohm Energy’s vision is to scale the adoption of rooftop solar across South Africa and beyond by creating a win-win situation for customers, installers, and finance providers. The startup provides customers with a digital platform that simplifies the process of going solar while also offering them access to credit financing. The startup also provides installers with mobile apps and SaaS tools that help them manage their projects, from design and scheduling to procurement and invoicing. The startup also connects installers with finance providers, who can offer them working capital and inventory financing.
Ohlsen said that by reducing the friction and inefficiencies in the solar value chain, Hohm Energy is unlocking new growth potential for the solar industry in Africa. “We walk the client through the journey and also work very closely with our trusted solar partners, providing them mobile apps and SaaS tools and workflows to streamline how they work with us and get access to quality jobs that originate and finance through our marketplace,” he said. “Inevitably, we’re reducing friction for the homeowner, the solar installer, and finance providers and unlocking new growth potential that makes this, in our minds, the model to scale the solar industry.”
The startup plans to use its seed funding to expand its team, improve its product, and grow its customer base. The startup also aims to enter new markets in Africa, where the demand for clean and reliable energy is high. Ohlsen said that Hohm Energy’s mission is to empower people to harness the power of the sun and contribute to a sustainable and prosperous future for the continent. “We believe that solar is the future of energy, and we want to make it accessible and affordable for everyone,” he said. “We want to be the leading platform for rooftop solar in Africa and help millions of people switch to clean and renewable energy.”
