UK solar company Enecsys has secured £25 million investment in what is being described as the biggest European cleantech private equity deal so far this year.
Cambridge-based
Enecsys has patented a
micro inverter technology that extends the life and increases the energy harvested by
solar photovoltaic (PV) systems for both commercial and domestic application. This second round funding has been led by
Climate Change Capital Private Equity, a €200 million European private equity fund, which is investing £11 million in the company.
The additional financing has come from existing investors Wellington Partners, NES Partners and Good Energies, who previously
invested £8.5 million in the company and this time round have raised a further £14 million.
The capital will enable Enecsys, which recently launched its products in Europe and North America, to grow the company mainly through developing its export business.
"The resources from this financing will be used to execute our growth strategy by accelerating our product
development and cost reduction plan and expanding our global presence in
sales, marketing, customer service and manufacturing to serve every major market," said Henrik Raunkjaer, ceo of Enecsys.
The technology
Solar inverters convert the DC power produced by PV modules into AC power for supply to the electricity grid.
Enecsys’ micro inverter design was first developed at Cambridge University and is recognised as a breakthrough
technology because it eliminates components that limit inverter life, something its investors believe sets the company apart.
"The opportunity the market currently presents to Enecsys is huge," said Bart Markus of Wellington Partners. "As of today Enecsys has the only certified micro inverter solution in
production in the European market, which represents 75 per cent of the world's residential solar market."
According to Enecsys, other benefits its inverter delivers are between five and 20 per cent more energy, easier and safer planning and installation of PV systems due to the elimination of high voltage DC wiring, and enhanced system optimisation.
Cleantech market
Today’s deal is almost double that raised by another European solar firm in what is believed to have been the previously largest European cleantech private equity deal of 2011 so far. According to research company the Cleantech Group this was £15.4 million for Sulfurcell Solartechnik GmbH, a Germany-based solar thin-film manufacturer.
Commenting on today’s deal, Simon Drury, a partner at Climate Change Capital Private Equity, said: "The ability for Enecsys to provide high performance, cost effective micro inverters with the reliability and life expectancy to match that of solar modules fundamentally changes the economic model of solar PV and will play an important role in growing the market for this clean power source."
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