Germany’s Enpal Achieves 118 Percent YoY Revenue Growth In FY 2023

German rooftop solar installation company Enpal has reported achieving record revenues of €905 million for FY2023, representing a year-over-year (YoY) growth of 118%. Last year, it installed over 100,000 new distributed energy resources (DER), integrating these into its system, taking its total to around 160,000 DERs.   

The company also achieved a positive operating cash flow and an adjusted EBITDA of close to €21 million in the ‘politically turbulent year.’ 

It lists regulatory challenges, such as the debate on the German Buildings Energy Act, the controversial subsidy program for solar charging, and the decline in demand for solar installations, in the second half of the year as areas of concern. 

Enpal’s business model was traditionally based on renting out solar systems to residential consumers. The year 2023 saw this SoftBank-backed company introducing a purchase option for renters of solar systems.  

It also announced a flexible loan model called Enpal EasyFlex which it sees as making it easy and affordable for German homeowners to switch to renewable energy.    

In terms of heat pumps, Enpal commissioned 31,000 new PV systems and heat pumps, representing a growth of over 100% in portfolio growth, and an increase of 72% compared to the 18,000 new customers it added in 2022.  

“In 2024, we will continue our investment strategy, focusing on the sale and installation of heat pumps and our proprietary energy management platform, Enpal.One,” explained Enpal CFO Jochen Cassel. “In parallel, we are proactively addressing Germany's shortage of skilled workers with our recently launched Heat Pump Academy, thus continuing to invest in the overall robustness of our business model.” 

Earlier this year in February 2024, Enpal announced plans to venture into solar production and was looking at different locations in Germany and elsewhere in Europe (see German Solar Manufacturing Industry Bracing For A Change?).