UrbanVolt in "transformational" debt raise17 May 2022
UrbanVolt, the Dublin-headquartered clean energy company, has secured a €36 million term loan facility. This comprises a €30 million, asset-backed, seven-year loan from Swedish-based credit fund PCP and €6 million from existing funding partners, BVP and Beach Point Capital.
The loan facility will be used to fund the installation of solar panels and related equipment on UrbanVolt’s primary target of commercial and industrial client sites in both Ireland and the UK.
UrbanVolt finances and installs solar panels on the rooftops of businesses and sells the solar generated electricity to those same businesses at up to 30% below prices charged by traditional electricity suppliers. UrbanVolt will also guarantee the price for up to 30 years, protecting businesses against rising energy costs for decades to come. There is no minimum amount payable and no standing charges, with customers only paying for the power they use.
Speaking today, Kevin Maughan, co-founder and CEO of UrbanVolt, said: “This is a transformational deal, which will allow us to scale at pace to meet the significant demand in the market while also streamlining the process of installing solar panels for our customers’ benefit. This first funding facility from PCP will see our project output grow by 20x over the coming years. It is also happening at a time when the demand for renewable energy is rising significantly given climate and geopolitical crises.
“There is simply no compelling reason for commercial and industrial operators to opt for traditional energy sources any more. UrbanVolt offers unparalleled price security and clean energy you can always rely on. By incorporating an ‘as a Service’ business model, our customers only pay for the energy they use without a standing charge, and the cost of our equipment and its maintenance is kept off their balance sheet.”
Henrik Bjerklin, Managing Director at PCP, said: “We are proud to partner up with a team of passionate entrepreneurs who drive the transition towards a more sustainable energy consumption.”
UrbanVolt launched its solar offering to Irish businesses last year. UV has agreed contracts with over 60 companies and it has seven installations completed to date. The energy generated from these agreed contracts will be the equivalent of taking 4,000 homes off the grid.
The business is capital intensive as UrbanVolt finances all the costs of buying and installing the solar panels on to the roofs of its client companies. The new facility will allow the company to significantly increase the number of installations completed over the next 24 months.
Urbanvolt was established in 2015 by Kevin Maughan, Graham Deane and Declan Barrett. In addition to solar energy, the company also finances, installs and maintains energy efficient LED lighting systems in large commercial and industrial sites such as car parks and warehouses.
In 2020, UrbanVolt raised €7 million from investors including the Ireland Strategic Investment Fund (ISIF) and businessman Stephen Vernon who is Chairman of the company.
Swedish-based PCP is a multi-billion euro credit fund which acts as a financial partner to family businesses and entrepreneurs. It was founded in 2002 and has been active in Ireland since 2012, where it has lent money to companies operating in a variety of sectors including renewable energy, telecom/data centres, hospitality, agriculture and healthcare.
Editors’ note – Manhattan Peanuts case study
Manhattan signed a contract with UrbanVolt in 2021 which means they will pay UrbanVolt for the energy generated by their new solar array at a fixed cost for the next 10 years. With the solar energy the panels create, their company is protected against rising energy costs. They will only pay for the energy they consume.
By generating their own clean energy, Manhattan will save 152 metric tonnes of CO2 annually, equivalent to driving around the world 15 times.
Don O’Neill, Managing Director of Manhattan Peanuts, says: "There is a moral obligation on companies to try and reduce their carbon footprint. The great thing about UrbanVolt is that there's not only environmental benefits, but there's also financial benefit. It's a great choice to make."
Editors’ note – UrbanVolt background
UrbanVolt was founded in Dublin in 2015 by Kevin Maughan (CEO), Declan Barrett (Chief Commercial Officer) and Graham Deane (Chief Operating Officer). It has operations in Ireland, UK, the United States and eight continental European markets.
Clients include brewing company Heineken, pharmaceutical company Pfizer, medical device manufacturer Zimmer Biomet, and global supply chain solution-provider Syncreon.
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