Germany’s largest heat pump installer, thermondo, has secured €50 million in initial loan volume from an unnamed international partner bank to support its new installment purchase offering, thermondo flex.
The financing will enable approximately 1,600 households across the country to install heat pumps without facing steep upfront costs, a move aimed at accelerating Germany’s residential energy transition. Thermondo’s investors include Brookfield, Future Energy Ventures, HV Capital, Vorwerk, Rocket Internet and 10x.
“For the energy transition, we need financing solutions that work for everyone,” comments Jason Goldstein, VP Strategic Finance at thermondo, “Our banking partner has recognised the future potential of the heat pump and supports us in offering homeowners an affordable switch in installments. The potential of such financing models will help direct consumer behavior towards decarbonised heating solutions. Because the heating replacement is not only a question of technology, but also of financial feasibility.” (Translated)
Founded in 2013, thermondo has grown into a central player in retrofitting heating systems for Germany’s single- and two-family homes. With a workforce of over 1,000 – more than 600 of whom are permanent tradespeople – the company has installed more than 50,000 systems to date, including over 9,000 heat pumps. This latest financing arrangement will allow the CleanTech company to offer flexible, customer-centric heating upgrades at scale.
In April 2024, thermondo acquired photovoltaic provider FEBESOL, expanding its reach into solar solutions.
Under the thermondo flex model, homeowners can opt for a 15-year installment plan to pay for a heat pump system, rather than making a large upfront investment. The offer features a fixed annual effective interest rate of 6%, with monthly payments averaging under €300 before state subsidies.
Homeowners eligible for the highest level of funding – up to 70% – can reduce monthly costs to under €100 if they use the subsidy for early repayment.
The full financing process, including consultation, contracts and customer service, is handled in-house by thermondo, with customers retaining ownership of the installed equipment from day one.
The €50 million facility is provided by an unnamed large international partner bank and structured through thermondo’s Special Purpose Vehicles (SPVs), keeping the loan liabilities separate from the company’s core business.
These SPVs receive advance payments from the bank based on the customer’s financing agreement, while customer payments are used to repay the bank loan over time. thermondo says this approach allows them to manage cash flow more efficiently and scale its service offering without balance sheet strain.
The timing is opportune. According to the Federal Association of the German Heating Industry (BDH), heat pump sales in Germany rose by 35% in Q1 2025 compared to the previous year. Despite this demand surge, affordability remains a critical bottleneck. A recent DENEFF survey indicated that up to 30% of German homeowners lack the financial means to transition to cleaner heating technology.
With this financing model, thermondo aims to fill the gap. The initiative not only aligns with governmental goals to decarbonise residential heating but also extends access to climate-friendly technology for lower-income households.
Read the orginal article: https://www.eu-startups.com/2025/07/berlins-thermondo-raises-e50-million-to-heat-up-germanys-homes-and-bridge-affordability-gap/
