Enpal raises €110m as it pushes beyond solar into heat pumps and software

Berlin-based Enpal has raised €110m in growth capital led by TPG Rise Climate, with The Westly Group, the Ontario Power Generation Pension Fund and existing backers also putting in money. The company said the round closed within a week of launch after demand exceeded what it was raising.

The deal is Enpal's third financing led by TPG Rise Climate, following a €215m Series D in January 2023 and a €150m investment from SoftBank Vision Fund 2 in 2021. This round is smaller than either of those, but Enpal frames it as targeted capital rather than a war chest for pure growth: most of the money comes from shareholders increasing their existing stakes, with one new investor, a large European insurer, joining the cap table. The company says its cash balance now stands at more than €250m.

From solar installer to home energy platform

Enpal started in 2017 selling subscription-based solar panels to German homeowners, and has since added battery storage, EV chargers and heat pumps to the package. The new funding is earmarked for three areas: scaling the heat pump and smart metering business, expanding Enpal.pro, a digital platform that lets independent installers manage jobs and parts through Enpal's supply chain, and rolling out its virtual power plant (VPP) technology nationally.

A VPP pools decentralised assets, solar arrays, batteries, heat pumps, sitting in thousands of households and trades their output and flexibility on energy markets. Enpal pairs this with Enpal.One+, its own energy management and trading layer, to let customers sell surplus power back to the grid rather than simply consuming what they generate. That is the bet behind the round: that the money sits less in hardware installs and more in software that squeezes revenue out of assets already in the ground.

A difficult year behind the raise

The timing matters. German solar and heat pump installers went through a rough 2023 and 2024, as subsidy changes, interest rate rises and a stop-start rollout of the country's heating law cooled demand and triggered consolidation among smaller rivals. Enpal says it ploughed more than €100m into new business lines in 2024 despite that backdrop, and that it came out the other side with higher market share across its main segments, including what it describes as the leading position in German heat pumps.

The company also points to February and March 2025 as its strongest revenue months to date, though it has not disclosed the figures behind that claim. Founder and chief executive Mario Kohle tied the funding directly to that shift in strategy.

"After two years of major shifts in the energy market, it's clear that our strategic decisions were the right ones," said Mario Kohle, founder and CEO of Enpal. "The fresh capital enables us to build further sustainable growth."

Why it matters beyond Enpal

Enpal's pitch has always been that a single company can own the whole stack of a household's energy transition, selling the hardware, financing it on a no-down-payment basis, and then monetising the data and flexibility that comes with owning the relationship. That model is harder to copy than a solar install alone, and it is one reason international investors such as TPG and OPG's pension fund have returned for a third round rather than being diluted out by new entrants.

It also signals where European climate-tech investors are putting money in 2025: less into subsidised installation volume, more into platforms, like Enpal.pro, that other installers pay to use, and into trading layers that monetise assets after they are sold. For competitors chasing the same residential energy market, Enpal's claim to heat pump leadership in Germany, if it holds, raises the bar for what a credible challenger now needs to offer beyond solar panels alone.

Enpal has not said when it expects to reach profitability company-wide or whether further funding rounds are planned before any future listing. The company was advised on the deal by Berenberg and White & Case.