The founder of the startup Neoom, Walter Kreisel, plans to expand into Germany despite the strong competition in the German solar market with companies such as Enpal, 1Komma5° and Zolar, as reported by Business Insider. For the market entry in Europe’s largest market, the scale-up recently increased the Series B financing round by a further 16 million to a total of 41 million euros. In order to work the German market, neoom is already working with 70 local installation companies. neoom sells PV systems, power storage and charging stations for e-cars via sales partners based on the car dealership concept.
The company has its headquarters in Freistadt and a branch in Zurich and is now opening another office in Nuremberg. Neoom generally works with electrical companies that install the solar equipment for end customers and earn a ten percent surcharge on the purchase price. The business model differs significantly from those of 1Komma5° or Enpal. 1Komma5°, for example, buys dozens of PV companies in different countries and brings them together under one roof, and Enpal also has its own teams to install the solar systems. By starting in the large German market, neoom plans to more than quadruple sales by 2026.
neoom expands Series B round by 16 million euros
Pioneers for energy communities
In Germany, Neoom wants to score with the possibility for its customers to set up energy communities. In Austria this is already possible; the Renewable Energy Sources Expansion Act (EAG) passed in 2021 provides the legal basis for renewable energy communities (EEGs) in Austria. Interested parties can use the neoom KLUUB app to join EEGs and then benefit from cheap solar power. “In Germany and Switzerland, the legal framework is still outstanding to make renewable energy communities quickly and unbureaucratically accessible to everyone through the neoom KLUUB,” neoom says about the expansion markets.
In contrast to Enpal and 1Momma5°, neoom is also geared towards commercial customers in order to implement larger solar power projects. But they all have one goal: They want to set up decentralized solar power plants in which several households or companies can join forces and sell excess electricity. As reported, Enpal and 1 Komma5° are already in the process of developing into new types of solar power traders who buy cheap solar power from their customers and then trade on energy exchanges in order to make a profit from it.
Enpal & 1Komma5° are developing into new types of solar power traders