Hohm Energy, a South African solar company, has paused operations due to severe cash flow issues, according to a report by Tech Cabal. The company has initiated a “business rescue” process, a legal measure in South Africa designed to assist financially distressed companies. This process, which typically lasts three months, will involve an investigation into the company’s affairs and a meeting with creditors to determine the next steps.
Amid these challenges, Hohm Energy has reportedly laid off several employees, and CEO Tim Ohlsen has stepped down from his role. Franc Gray, CEO of Hohm’s parent company, Spark Energy Services, confirmed to Tech Cabal that the company is currently not trading and is seeking legal guidance on how to move forward.
Hohm Energy secured an $8 million seed round in February, primarily for its solar marketplace platform. This platform enabled customers to assess their solar energy needs digitally and secure loans for rooftop solar installations. The company claimed to have generated over 17,000 custom solar rooftop designs worth $190 million, and facilitated finance applications totaling over $90 million through its retail banking partners.
However, South Africa’s improved grid stability in recent months has diminished demand for solar energy solutions, further exacerbating Hohm Energy’s financial difficulties. The country had previously faced severe power shortages, with daily electricity rationing to prevent a grid collapse, but recent improvements have contributed to the company’s current predicament.
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