HalloStroom

Company profile

Solar surge sparks grid imbalance and soaring costs, hindering energy transition

2.5 million homes with solar panels in the Netherlands cause “over-production” of solar power, contributing to grid imbalance. The cost to compensate this has increased more than 6 times since 2020. Adding new renewable energy sources like wind and solar to the grid is getting more difficult and the transition to a sustainable and independent energy supply is being slowed down.

Furthermore, homeowners that own solar panels cannot use all of the energy that their solar panels produce, since it is often produced when the household demand for energy is low. The current subsidy in the Netherlands with regards to balancing production with consumption over a whole year is under constant scrutiny by the government as it is expensive and seen as favouring homeowners over renters. It is expected that this subsidy will eventually be reduced and abolished. Energy providers are also starting to charge penalties for solar power export, which has slowed the solar adoption rate from extremely high levels in 2022.

HalloStroom: affordable solar and home battery lease empower homes

HalloStroom is a Dutch company founded in 2016, situated in Gouda. It provides an affordable and hassle-free solution for homeowners to generate and store their own sustainable energy. HalloStroom already leases solar panels to some 13.000 private homeowners and has now started to lease out home battery systems to their customers, making the switch to renewable energy accessible to a wide audience. Thanks to the lease proposition offered, customers get the benefits of (trading with) self-stored energy without having to make a big investment upfront.

Company Info 

How does it work?

Business model

Accessible leasing model leads to high demand

HalloStroom´s lease model removes the barrier of upfront cost, making energy savings accessible to everyone. HalloStroom installs, operates and maintains the batteries. Due to the full service offer HalloStroom profits across the entire value chain.

Extensive screening process of customers prior to lease reduces probability of default

Prior to issuing the leasing contracts, a comprehensive credit screening is applied to all potential tenants based on Experian's credit information. Afterwards, the company leases its home battery systems to its customers on a 15-year term. The customer thus directly saves on their monthly energy costs and pays a fixed monthly lease amount to HalloStroom in return.

Existing customer base of 13 thousand users creates cross-sales potential

The existing customer base of 13 thousand users opens up significant cross-sales potential without additional marketing spends. With established trust and relationships, HalloStroom can seamlessly introduce additional products or services to meet their customer evolving needs.

Zero risk cooperating thanks to dedicated installation partner

HalloStroom Duurzaam Installeren B.V., as the in-house Engineering, Procurement & Construction ("EPC") contractor, assumes the development, installation and construction risk. Lease contracts are considered completed and deemed billable as soon as the systems have been successfully installed and are in full operating condition.

Suppliers' product warranties are (re)insured

HalloStroom's suppliers provide solid product warranties, ensuring reliable operation. This includes a minimum of 96% efficiency and at least 89% roundtrip efficiency. Installation errors are covered by the warranty, supported by CAR and liability insurance. (Re-)insured supplier warranties add an extra layer of security.

Market

Surging demand: home battery market thrives amid solar subsidy changes and growing storage needs

The market for home batteries and larger-scale electricity storage is experiencing rapid growth. The demand is increasing due to the anticipated reduction in governmental subsidies for solar electricity production in the Netherlands (Salderingsregeling) as well as due to the growing trend of energy companies charging for electricity production. Simultaneously, there is a need for measures to alleviate net congestion, enhance peak-shaving capabilities, and facilitate larger-scale storage options. The market is projected to reach 3.2 GWh in the Netherlands by 2030, signifying a doubling in size every two years. However, short-term projections are less certain due to market uncertainties.

Source: Smart Storage Trend Report, DNE Research 2022, page 50.

Market Opportunity for HalloStroom

Households will need to continue to ensure their houses are sustainable to lower costs. The solar panel market is no longer an early adopter market, but now in majority lifecycle. In the Netherlands, gas as a main energy source is being phased out, opening the way for the One-Stop-Shop offering energy production through solar panels, battery storage and heat pumps.

Popularity of renewable energy is creating an imbalance which is now stirring up discussions about cost allocations between traditional and self-sufficient consumers. This offers an opportunity to voice the need to become fully self-sustainable by investing in batteries, heat pumps and EVs while looking to enter into just and fair energy contracts (one-stop-shop).

The shift from internal combustion engine (“ICE”) cars to fully electrical cars will increase the need for electricity and EV-chargers even more.

These developments all pave the way for HalloStroom to tap into the many opportunities to become the go-to One-Stop-Shop for all energy-related products and services and to work towards a full Energy-as-a-Service model: energy, heating and EV-charging for one fixed amount per month.

On a global scale, The Netherlands has advanced far ahead in the energy transition allowing HalloStroom to establish best practices with a clear blueprint for further deployment cross-border. This will open up new markets giving HalloStroom the potential to become a major, global player in the field of sustainable energy.

Company structure

The founders own the majority of the company structure and manage the company on a daily basis. 

Use of funds

Investment related documents

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