Hometree, the London based energy firm, has secured funding from BlackRock to buy up renewable energy and heat pump installers.
Funds managed by BlackRock, the US investment giant run by Larry Fink, have committed £7.5 million to the project, an amount that could rise far higher, sources say, if the scheme is a success.
Hometree says it aims to make heat pump installation, boiler care and replacement as easy as booking an Uber.
With more than 5000 installers it claims it can challenge Homeserve and British Gas in an expanding market.
The UK has a target of installing 600,000 heatpumps a year by 2028 but just 18,900 were installed between May 22 and December 23, according to the National Audit Office.
Today Hometree said it has just bought up energy installers a North Shields-based Geowarmth and Kent-based The Little Green Energy Company.
Those deals take the number of installers it owns to seven – a third deal could come as soon as this week.
Between them, Geowarmth and the Little Green Energy Company have installed around 12,500 renewable systems into homes across the UK over the last 10 years, employ 55 people and have a combined £15 million in revenues.
The companies will gain access to Hometree’s customer base, its financing products and insurance services.
Hometree Founder & CEO Simon Phelan said: “Our mission has always been to support homeowners to decarbonise their homes, and this funding from BlackRock gives us the capacity to increase our scale at pace through M&A.
“If the UK is to achieve its net zero ambition, we will need an army of installers right across the country and we’re committed to bringing together these skills, supported by financing and in-life repair and maintenance services, to make Hometree the first choice for homeowners who want to do the right thing by the planet.”
Tim Fenwick, Director at BlackRock Venture & Growth Lending, said: “This new debt facility will support the company in scaling up its plan to manage all aspects of sustainable homeownership and give our clients exposure to an innovative, growing business.”
