Hometree receives funding from Blackrock for further renewable energy acquisitions

London-founded Hometree has raised a debt facility from BlackRock, enabling them to buy renewable energy installers across the UK for the installation of energy-efficient boilers and other infrastructure in British homes.

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. Energy inefficient homes are prevalent throughout the country, and Hometree covers over 100,000 homes nationally. The company has raised more than $83m from investors including Legal & General and LocalGlobe.

Hometree aims to expand its capabilities by acquiring renewable energy installers across the country including North Shields-based Geowarmth and Kent-based The Little Green Energy Company. The North-East deals have been completed with competition of the Kent acquisition expected later this week, bringing Hometree’s total of acquired companies to seven.

The companies will gain access to Hometree’s customer base, its suite of financing products and insurance services, as Hometree bolsters its engineering force and re-train more of its 5,000 engineers to be able to install, repair and maintain renewables.

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.”