1Komma5 Acquires Zewo Energy to Expand Renewable Reach

• 1Komma5 bolsters its solar dominance with the acquisition of Zewo Energy, amplifying its renewable solutions and embracing profitability in Germany's thriving clean tech landscape.

German cleantech unicorn 1Komma5 has acquired Zewo Energy, a renewable energy solutions firm based in Deggendorf, Bavaria. This acquisition enhances 1Komma5's position in Germany's largest market for solar and heat pumps. CEO Philipp Schroeder noted Zewo Energy generated significant revenue and maintained strong profitability despite a cooling solar market.

Founded in 2018, Zewo Energy specializes in the design, installation, and maintenance of photovoltaic systems, energy storage solutions, and PV carports for various clients. This deal comes on the heels of 1Komma5's recent growth following a €215 million financing round in 2023, alongside prior acquisitions in Europe and Australia.

How does 1Komma5's acquisition of Zewo Energy impact Germany's renewable energy market?

The acquisition of Zewo Energy by 1Komma5 is poised to have significant implications for Germany's renewable energy market. Here are the key impacts of this acquisition:

• Market Consolidation: The acquisition strengthens 1Komma5's position as a leading player in the German renewable energy sector, consolidating its market share and potentially increasing competitive barriers for smaller firms.
• Expanded Service Offerings: With Zewo Energy's expertise in photovoltaic systems and energy storage, 1Komma5 can expand its range of services, offering comprehensive energy solutions that address a wider array of consumer needs, particularly in solar energy and energy efficiency.
• Increased Capacity for Innovation: The merger may foster innovation by combining the technological prowess and resources of both companies, potentially leading to the development of new products and services that enhance efficiency and customer satisfaction.
• Economic Boost: As Zewo Energy has maintained strong profitability, its integration into 1Komma5 may enhance the overall economic performance of the combined entity, potentially leading to further investments and job creation within Germany's renewable energy sector.
• Enhanced Customer Reach: Zewo Energy's established client base in Bavaria allows 1Komma5 to extend its geographic reach, enabling better access to both residential and commercial customers and increasing brand visibility across the region.
• Response to Demand for Sustainability: The acquisition aligns with the growing consumer preference for sustainable energy solutions, allowing 1Komma5 to meet rising demand in Germany for solar installations and heat pumps as the country pushes toward carbon neutrality.
• Strengthened Supply Chain: Integrating Zewo's operations may optimize the supply chain for 1Komma5, making it easier to source materials and equipment required for renewable energy projects, thus reducing costs and improving project timelines.
• Potential Influence on Policy and Regulation: As a more significant entity, 1Komma5 may have greater influence in discussions around governmental policies and incentives related to renewable energy, advocating for favorable regulations that could boost the industry further.
• Cross-Selling Opportunities: The merger allows for cross-selling of products and services, enabling customers of each firm to explore new renewable energy options that they may not have previously considered, enhancing customer loyalty and satisfaction.
• Investment Attraction: This acquisition can position 1Komma5 as an attractive opportunity for investors interested in the burgeoning renewable energy market, potentially leading to increased funding and expansion opportunities for future endeavors.

With these impacts in mind, the acquisition of Zewo Energy marks a significant step in shaping the future landscape of Germany's renewable energy market, ensuring it remains competitive and innovative in a rapidly evolving industry.