Otovo breaks solar installations records

Otovo has announced outstanding financial results for the second quarter of 2023, and this period marked a remarkable milestone for the company, achieving record-breaking numbers in installations and revenue.  

Otovo breaks installation record

Moreover, Otovo foresees a promising future, as it anticipates a continued decline in the cost of solar hardware in the coming months. With its dedication to providing cost-effective and sustainable energy solutions, Otovo remains at the forefront of the European solar industry. 

This was again a record quarter for Otovo for installations as the run rate grew to thirteen thousand installed units per year. 

Record units per year

“With another set of record installation numbers and more revenue per customer, good things came together this quarter for all time high revenues. With barriers removed in installations and value chains, and a seeming start to a rebound in sales, our view is rather hopeful for the autumn”, says Otovo founder and CEO, Andreas Thorsheim. 

UK general manager Jina Kwon comments: “In the UK, Otovo has just had one of our best periods for sales. Hardware, labour, and cost per watt are all down versus this time three years ago – to the benefit of consumers, as these savings are passed directly onto them.

“Consumers will continue to benefit from these cost reductions, which will not just save money on the installation itself, but then create a bigger saving in the long run.” 

Q2 was also a strong quarter in terms of margin, with a substantial improvement to IFRS reported margins, back up to 21%. The gross margin generated, which also accounts for the value creation in the subscription segment, came in at 24%.  

Otovo also experienced its highest-ever addition to the subscription portfolio, with total portfolio value having more than three-folded in a year. 

Otovo builds European tech-hub in Madrid 

This quarter, Otovo centralised its operations and marketing resources in Madrid to harness the pan-European position built over the last few years, leveraging a flexible, cost-effective, and highly skilled central team. Being active in 13 different European markets with varying customer acquisition costs enables Otovo to grow where it is most cost-effective and value accretive.  

“The added focus on shared resources in Madrid, which complements our capital light marketplace model gives us a lot of flexibility. This strategy gives us a cost advantage over competitors with more resource-intensive models, strengthening our competitive position”, Thorsheim comments. 

With Otovo’s European exposure, currency was a major topic this quarter as the NOK weakened relative to all other market currencies. This had a strong positive effect on reported revenues, ticket sizes, gross profits, as well as portfolio value.  

“Moreover, throughout the quarter, the cost of solar hardware continued to fall, rendering solar more affordable for consumers, as did installer labour. I see this trend continuing in the near future and substantially benefiting our unit economics and ultimately our ability to compete and create demand”, says Thorsheim.  

In addition, Otovo reduced installation time for consumers in the second quarter significantly. While the overall solar market situation was tense due to the skyrocketing demand for solar energy in 2022, Otovo succeeded in reducing installation times to an average of 2.6 months across all 13 markets (in 2022 this was over seven months at peak times).