Photo: Timon Schneider / Zoonar / IMAGO

The German Solart start-up Enpal has secured a fresh chapter to continue its rapid growth trajectory: A total of 430 million euros from old and new investors have been raised to refinance existing loans, the company announced. The company plans to use the capital to install more than 13,000 new renewable energy solutions, such as solar systems and charging stations for electric vehicles.

According to the report, existing investors ING Germany with 230 million euros and Blackrock with 100 million euros have increased their financing commitments. In addition, there are 100 million euros from the Frankfurt-based asset management company DWS. According to Enpal, its total obligations now amount to a total of 1.9 billion euros.

The company specialises in the rental of solar systems. During the rental period, Enpal takes care of the operation of the facilities. If, for example, the inverter or storage system breaks down, the company replaces the components. Enpal finances the investments with the help of major banks, and the difference between rent and interest costs remains with the company as profit. Recently, the company has also expanded its product range to include heat pumps.

Most recently, there had been criticism of Enpal's rental model from consumer advocates and competitors. After 20 years, customers would have paid more than if they had simply bought the system. The comparison portal Verivox, for example, came to the conclusion that a purchase is always cheaper than renting – provided that customers do not have to take out a loan. In the meantime, Enpal also offers solar systems for sale.