Renewable electricity provider Good Energy has made another strategic acquisition as it looks to move into complementary markets.
The Chippenham-headquartered group is paying £2.5m for Wessex EcoEnergy, an established UK-based solar installation business.
Good Energy said the acquisition represented a further milestone in delivering on its strategy to expand its capability in decentralised energy services while boosting its established energy supply business and heat pump installation capability.
The move also supports the firm’s ambition to help 1m customers cut carbon by 2025.
It follows last December’s £1.75m acquisition of heat pump installation firm Igloo. As a result of that deal, Good Energy now offers affordable heat pump installations, positioning it to benefit from the rapid growth in demand for them.
Acquiring Dorchester-based Wessex EcoEnergy broadened Good Energy’s ability to install green energy infrastructure and provide the best tariffs for the energy produced by its customers, it said.
Wessex EcoEnergy, which will continue to operate under its own brand, will benefit from now being able to offer a full energy service package including solar, storage, heat and export tariffs for its customers, Good Energy said.
Its services will be marketed to both Good Energy’s existing 270,000 customers and new prospects focused in the South West.
In the financial year ended 31 October 2022, Wessex EcoEnergy made a net profit of £300,000 on sales of £2.2m. Its gross assets on 31 October 2022 were £800,000.
Good Energy, which also part owns electric vehicle charge point mapping app Zap-Map, said the acquisition was expected to marginally benefit it earnings in the first full year of ownership but materially benefit them in the year ending 31 December 2025.
Good Energy chief executive officer Nigel Pocklington said the business was fast becoming the UK’s go-to all-in-one solar service company.
“We have the second-largest solar generating customer base, paid out a record amount for solar power last year and have launched market leading smart export tariffs,” he added.
“Bringing Wessex EcoEnergy into the business accelerates our solar and storage installations business, as the solar surge which saw installs grow 125% in 2022 continues.
“Not only does Wessex EcoEnergy’s purpose align with Good Energy’s, its premium, trusted positioning in the South West aligns with Good Energy too.”
He said there was a £5bn to £10bn growth opportunity in clean energy technology installations among climate conscious consumers.
