Hohm Energy has reportedly filed for voluntary liquidation with the CIPC in South Africa
As South Africa cuts down on load shedding for grid-connected electricity, demand for solar is coming down
Since March 26, 2024, there has been uninterrupted power supply from Eskom
A leading name in the South African renewables market, online solar software platform and marketplace Hohm Energy has filed for voluntary liquidation with the country’s Companies and Intellectual Property Commission (CIPC).
According to local media reports, its problems started soon after Hohm raised $8 million in seed funding to scale up its rooftop solar business in February 2024. By the end of July 2024, it reportedly halted operations and laid off employees.
Launched in 2013, the fall in Hohm’s business is being attributed as a response to the shift in South Africa’s energy market that has been pulling down demand for solar.
A country where long hours of load shedding used to be an everyday affair mainly due to its aging power stations, South Africa’s sole utility Eskom has seemingly turned the situation around. On September 13, 2024, it announced having achieved 170 consecutive days of uninterrupted power supply since March 26, 2024, thanks to the ongoing structural improvements in its generation fleet.
Eskom is also diversifying into renewables, and adding clean energy sources such as solar PV to its coal-fired power plant sites (see South Africa’s Eskom Seeking Bidders For 30 MW Solar Power Plant).
The lack of rooftop solar demand due to low rates for conventional electricity supply is bothering solar PV companies even outside of South Africa. This was one of the reasons for leading US residential solar installers Lumio and SunPower filing for relief under Chapter 11 recently (see US Residential Solar Installer Lumio Files For Chapter 11 Relief).
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