Europe’s adoption of heat pumps skyrocketed in 2022, as soaring gas prices had households and businesses seeking alternative ways to heat and cool. Demand has since slowed, with too few installers, high upfront costs and inadequate financing options.
Thermondo helps homeowners avoid large upfront payments with installment-based financing plans of up to 15 years. Payments average about €300 per month and, with state subsidies, can be as low as €100 per month, the company says.
Thermondo has installed more than 9,000 heat pumps (out of 50,000 total heating and cooling systems) since 2013.
Thermondo secured €50 million ($58.2 million) in debt financing from an unnamed bank. It set up a special purpose vehicle to house its installment financing business, which “minimizes financial risks and decouples them from Thermondo’s core business,” the company said. “The structure stabilizes Thermondo’s cash flow and creates a basis for efficiently scaling the installment.”
Policy push
The European Union’s €86.7 billion Social Climate Fund comes into effect next year to help member countries decarbonize heating and cooling systems in buildings. A Heat Pump Accelerator program will identify barriers and promising policies for heat pump deployment. For example, the EU estimates that the bloc needs 750,000 more trained heat pump installers to achieve its 2030 climate goals. Half of existing heat system installers need to be retrained.
