Dealflow | February 27, 2024

South Africa’s Hohm Energy nets $8 million to meet demand for solar power

Lucy Ngige
Guest Author

Lucy Ngige

ImpactAlpha, Feb. 27 – South Africans have endured years of rolling blackouts as the country’s aging coal plants falter. The outages have shaved as much as 2% off the country’s GDP.

That’s leading businesses and households to add rooftop solar at an unprecedented clip: solar power generation surged 350% in just over a year.

Sandton-based Hohm Energy offers solar system design, cost analysis, installment and maintenance services on a platform that connects customers to suppliers and credit options through Hohm’s partnerships with local financial institutions. Early stage investors E3 Capital and 4DX Ventures led the $8 million seed investment.

Backing clean energy entrepreneurs

E3 Capital, formerly Energy Access Ventures, cuts checks of between $250,000 to $10 million for low-carbon energy and connectivity providers across Africa via its Energy Access Ventures Fund 1.

Through a joint venture with Lion’s Head Global Partners, E3 has launched E3 Low Carbon Economy Fund for Africa. The early-stage climate fund closed on the first $48 million of a targeted $100 million raise. E3’s portfolio includes d.light, Nuru, Sunculture and InspiraFarms and other metro-grid companies, solar product providers and solar cold-storage solutions.