Innovation

Enpal is introducing an innovative business model which aims to make solar panels affordable for a higher percentage of the population. The problem that most people have with green solar energy is the high initial investment costs which usually range between 30,000€ and 40,000€. In addition to that a potential client has to take into account the eventual maintenance costs and a return on investment of at least twenty years (Zamorano, 2023). These financial factors make solar panels very unattractive for the average household and it is exactly for these new possible customers that Enpal introduced its new business model which guarantees the installation and maintenance of solar panels over twenty years for its clients (Zamorano, 2023). Most important of all is the fact that purchasers are able to pay for this service through loans over the same period of time, eliminating the obstacle of the high initial costs, and at the same, they don’t have to worry about anything concerning the solar panels since Enpal is fully responsible for them. Furthermore, the client can also decide to pay back the full amount at any point in time during these twenty years (Zamorano, 2023).

The goal of this business model has always been to make green energy more affordable in order to be able to not only help the population but also effectively fight against climate change on a broader scale (Zamorano, 2023). Did it work? Well, the proof is in the putting with Enpal being founded as a start-up in 2017 and having more than two thousand workers in 2023. It is clear that its mission is being accomplished and that the company is satisfying preexisting market needs.

Inspiration

In the year 2015, approximately one to two years before the sale of his former company Käuferportal, Mario Kohle, the CEO and Founder of Enpal, engaged in an extensive exploration of solar energy systems. This period marked the genesis of his inspiration for Enpal which he founded in 2017 with Viktor Wingert and Jochen Ziervogel. For instance, he found out in a survey that only 10% of all house owners with suitable rooftops bought solar panels. However, 90% of people declared themselves as being ready to install them.

This awareness led to two pivotal realizations: Firstly, climate change is considerably more severe than he previously assumed, resulting in shortages of food for so many individuals and not as presumed by him, that the weather will be only slightly hotter. Secondly, the technology to harness energy from the sun already exists. These insights served as the foundation for the establishment of Enpal, whose objective was to transition to renewable energy through the leasing of solar power as a means to combat climate change.

Overall impact

Enpal's innovative strides have ushered in a new era marked by heightened competition that leads to an increase in innovation. As Enpal expands its market presence and offers comprehensive renewable energy solutions, competitors are compelled to elevate their offerings, fostering a culture of continuous innovation.

Enpal's influence extends to the social sphere, notably in the recruitment of local craftsmen who play a pivotal role in the installation of the products. In addition, Enpal fosters independence among craftsmen, which contributes to the resilience and autonomy of the skilled workers. Moreover, in response to the prevailing energy crisis, individuals are increasingly seeking independence from traditional energy sources. Enpal's solutions provide a compelling avenue for clients to achieve this autonomy, resulting in a surge in clientele.

The further impact of Enpal can be recognized in correlation with the Sustainable Development Goals (SDGs) – SDG 7 “Clean energy”, SDG 9 “Industry, innovation & infrastructure”, SDG 11 “Sustainable cities and communities” and SDG 13 “Climate action” – because the new business model promotes affordable green-energy for everyone.

In the short term, Enpal's initiatives have led to a significant increase in new customers, indicating a swift adoption of renewable energy solutions. The long-term effects are reflected in the establishment of almost 50,000 households forming a climate-friendly energy community in Germany, showcasing sustained growth and continued environmental contributions.

Business benefit

Enpal positions itself as a trailblazer in sustainable energy supply by providing green and cost-effective energy for homes worldwide. The option to purchase or lease solar installations offers homeowners long-term cost savings and establishes a reliable revenue stream, as evidenced by Enpal's remarkable 2022 growth of 277%, achieving a revenue of 415 million euros. The integration of solar panels, energy storage systems, wallboxes, and the proprietary Enpal app creates smart, connected homes, and allows Enpal to position itself as a comprehensive provider of green energy solutions. The long-term profit potential resulting from reduced electricity costs and independence from rising energy prices not only enhances the financial well-being of homeowners but also solidifies Enpal's position as a forward-looking company in the renewable energy sector (Zamorano, 2023).

Social and environmental benefit

Enpal's commitment to providing green and affordable energy holds significant societal and environmental benefits. By offering the option to purchase or lease solar installations at a fixed price, Enpal empowers homeowners worldwide to contribute to a more sustainable future (Zamorano, 2023). This not only reduces reliance on conventional energy sources but also mitigates the environmental impact associated with fossil fuel-based power generation, such as coal-fired plants. The promotion of solar energy not only addresses rising electricity costs but also plays a crucial role in combating climate change by decreasing carbon emissions (Zamorano, 2023). Enpal's innovative and comprehensive solution, including solar panels, energy storage, wallboxes, and a dedicated app, not only enhances individual households' energy efficiency but fosters the creation of a renewable community. This collective effort towards green energy usage aligns with a broader societal and environmental goal of building a cleaner and more ecologically responsible world for current and future generations.

Interview

Daniel Zamorano, COO Office