EAB Private Equity and Tesi (Finnish Industry Investment) have made a 15 million euro investment in the Finnish solar energy company Solnet Green Energy.
The investment will enable Solnet to accelerate its growth in the fast-growing markets in Europe. The founders Arttur Kulvik and Kaj Kangasmäki will remain largest shareholders in the company. The company was founded in 2014, and its investors and advisors include photovoltaic industry pioneers and former presidents of the European industry association SolarPower Europe Dr. Tapio Alvesalo, Dr. Winfried Hoffman and Philip Wolfe.
Solnet has tripled its turnover in the last four years, and the company is now the fastest growing Finnish company providing renewable energy services in the European market. Solnet helps large and medium-sized companies in achieving their sustainability goals in Europe. The company’s largest markets are currently Germany, Finland, the Netherlands and Poland, but more and more customers are showing interest in the services offered by Solnet throughout Europe.
The cost of photovoltaic systems has dropped about 90% in the past ten years, making solar energy the cheapest and cleanest way to generate electricity. Solnet has so far delivered more than 400 solar utilities to customers such as IKEA, DHL, Lidl and Kesko, as well as several large asset managers, insurers and logistics companies. The investment will also help build out the scope of ancillary services offered to customers, such as energy storage and energy management systems.
The solar market development is driven by the unique potential of solar energy to replace the energy deficit resulting from Europe’s energy transformation, and its positive impact on the environment in terms of reducing CO2 emissions. Europe’s goal of becoming more energy independent is accelerating market development and the recent increases in the price of electricity have further improved the profitability of photovoltaic investments.
“The market potential of solar energy is huge and growing fast. Solnet aims to become a leading provider of solar power solutions to corporations in Europe by 2024. We want to accelerate the development of an energy independent Europe, and with additional capital, we can help more and more companies reach a carbon-neutral future. We are delighted that EAB Private Equity and Tesi want to be involved in this development,” says Kaj Kangasmäki, CEO of Solnet Green Energy.
“Solnet is a great fit with our sustainability driven investment strategy. Strong megatrends such as zero emissions, investments in renewable energy and energy independence combined with Solnet’s competitive advantages create an excellent platform for growth. In Europe, the share of solar as an energy source is set to double in just a few years. As an active owner, we look forward to supporting Solnet’s management team in implementing the ambitious growth plan,” says Kalle Kekkonen, Managing Partner at EAB Private Equity.
“Our investment in Solnet promotes both Tesi’s ‘Renewable energy and energy efficiency’ impact theme as well as sustainable development goals. It also supports the pursuit for carbon neutrality and energy independence in Finland and Europe. We want to be on board in further accelerating Solnet’s strong growth and internationalisation in the European key markets,” says Heli Kerminen, Investment Director at Tesi.