Berlin, March 24th, 2023 - Enpal, Germany’s fastest growing renewable energy company, has partnered with Citi, a global investment bank and one of the leading players on the US residential solar ABS market, as well as M&G Investments, a UK-based leading asset manager with c. € 391billion assets under management, to launch a new asset class in Europe.
For the new ABS warehousing facility, Enpal has secured senior debt commitments of € 300 million from Citi and € 56 million secured mezzanine debt commitments from funds managed by M&G. The commitments will be used to finance more than 12,500 new solar systems for Enpal’s customers, including energy storage and electric vehicle charging systems. This transaction increases Enpal’s overall refinancing commitments to more than € 1.6 billion.
"We are excited to be joined by Citi and M&G on our path to set new standards for the renewable energy industry in Europe”, said Mario Kohle, CEO and founder of Enpal. "To successfully enable German homeowners to become energy independent, the commitment of the financial industry is mandatory”, he added.
“The global energy transition, in line with international climate and development objectives, will require a massive re-allocation of capital toward renewables and the mobilization of all available capital sources”, the International Renewable Energy Agency (IRENA) recently concluded. 1 Unlike the US, where the growth of the residential solar market has been successfully supported by the securitization market for many years, the European residential solar market has so far not utilized asset-backed securitizations.
“We look forward to launching the first securitized financing product for residential solar in Germany”, said Viktor Wingert, Chief Investment Officer and Co-founder of Enpal, adding “This commitment enables us to offer our customers a uniquely flexible and affordable solution that otherwise would not be available in the German market”.
“Citi is thrilled to support one of Europe’s leading Greentech companies. Citi has extensive experience financing photovoltaic energy solutions in the US market and is excited to bring this expertise to Europe. Asset-backed securities will play an important role in financing the energy transition across Europe,” said Sebastian Walf, Head of EMEA Asset Backed Securities at Citi.
Jerome Henrion, Head of Specialty Finance, M&G, said: “We are pleased to have participated in the first German solar securitization and established a long-term partnership with a high growth company with a sustainable business model. Enpal has demonstrated in recent years that it can efficiently and effectively roll-out PV systems at scale – this deal will enable the company to do more.”
Enpal aims to make renewable energy accessible for everybody. The last years have shown a market trend towards larger, highly integrated solar systems. However, due to rising living costs, more and more home owners are struggling to pay the complete purchase price of a PV system upfront. “Enpal is committed to help everyone to get a solar energy system on their roof, an electric car in front of their house and a storage unit in their home – this goal can only be achieved by providing a compelling financing solution together with the PV system," explained Mario Kohle.
Enpal was founded in 2017 with the vision of connecting humanity to become a renewable community. The Berlin-based Greentech offers the first integrated package for a climateneutral home including PV systems, energy storage, EV chargers, green electricity tariffs and smart energy management. Its solar energy solution is easy, affordable, and smart, making private households independent from fossil fuels and reducing carbon emissions. Customers have no upfront investment and benefit from the all-inclusive care-free rental-package, including service and maintenance. Since March 2023, clients can choose between renting the all-in-one package or purchasing the integrated PV system. All PV systems are connected to form an intelligent renewable network. With 40,000 customers in Germany to date and 3,000 additional solar energy systems being installed per month, Enpal is the #1 fastest growing energy company in Germany (FT1000 Ranking 2022 & 2023 by Financial Times & Statista).