Hometree, the fast-growing residential energy services company, has acquired North East-based renewable energy installer Geowarmth to support the home decarbonisation revolution.
Founded in 2015, Hometree has become a leading UK challenger brand in residential energy services. With an initial focus on home emergency breakdown and insurance, Hometree has since expanded into renewable installations and financing, positioning itself to become a key partner for homeowners looking for low-carbon home energy solutions. It now has over 100,000 customers who rely on Hometree to keep their homes running smoothly with emergency heating, plumbing, electrical repairs and maintenance plans, which are delivered by its nationwide network of over 5,000 multi-trade engineers and installers. In addition, through its Hometree Finance division, Hometree has the largest portfolio of residential heat, solar and battery leases in the UK which it finances and owns the assets for homeowners, so they can benefit from the lower energy bills, without the upfront cost of installation.
Leading the domestic renewable energy charge
With demand set to surge for renewable energy installations, Hometree is in a prime position to accelerate the change from gas boilers to heat pumps and other renewable forms of technology across the UK. As the UK phases out gas boilers in new homes by 2035, many consumers are investing in renewable energy sources to power their homes including heat pumps, solar panels and electric batteries. With targets to have 600,000 heat pumps installed by 2028, Hometree is capitalising on this switch to renewables by acquiring Geowarmth, which has pioneered renewable energy solutions across the North East and North West of England since 2004.
Geowarmth will gain access to Hometree’s customer base and its suite of financing products and insurance services, so it can deliver even more value to its customers. Meanwhile, the acquisition will enable Hometree to bolster its engineering force and re-train more of its 5,000 engineers to be able to install, repair and maintain renewables – a key consideration given that reports have suggested that the country needs 30,000 heat pump installers to meet its ambitious targets.
Hometree Founder & CEO Simon Phelan said: “I’m incredibly excited to be partnering with John Withers and the Geowarmth team look forward to helping them scale the company significantly. If the UK is to achieve its net zero ambition, we will need an army of installers right across the country and we’re committed to bringing together these skills, supported by financing and in-life repair and maintenance services, to make Hometree the first choice for homeowners who want to do the right thing by the planet.”
John Withers, CEO of Geowarmth said: “I’m immensely proud of the progress we have made in the past 20 years to become a recognised installer of low-carbon energy solutions. I am delighted we are now part of Hometree, which will allow us to reach more people and help more homes transition to renewable energy.”
Hometree was advised by Interpath Advisory, providing financial and tax due diligence with legal advice from CMS. Advising John Withers and Geowarmth was Newcastle-based RG Corporate Finance, led by Corporate Finance Partner Nick Johnson, CF Manager Sam Shield and CF Executive Ben Kain. Legal advice was provided by Newcastle-based Clarke Mairs, led by Managing Partner Tim Clarke, Associate Solicitor Alex Robson, Corporate Solicitor Charlotte Smyth, and Corporate Solicitor Tyler Easton.
Nick Johnson, CF Partner at RGCF, said: “The domestic and commercial renewable energy markets have seen strong growth as we, as a society, increase our commitment to addressing climate change, while also looking for solutions that manage energy bills. Geowarmth is proving to be well-placed to support these ambitions and will benefit from being part of Hometree’s growing presence in this market. It was great to work with John and we are excited to see Geowarmth fulfil its potential with Hometree.”
Since it was founded, Hometree has raised >£85 million in funding and recently secured its first debt facility from funds and accounts managed by BlackRock to support its acquisition strategy. Hometree is also backed by one of Europe’s largest asset managers in Legal & General Capital, alongside a range of leading specialist energy investors including Energy Impact Partners, Inven Capital and 2150.