In a positive development for Europe’s renewable energy sector, Otovo, the leading marketplace for residential solar and battery systems, has announced robust sales growth and record margins for the first quarter of 2024. Despite facing challenges in recent quarters, CEO Andreas Thorsheim remains optimistic about the company’s performance, citing a successful business model and improved market conditions.
Total income from operations reached 14 million euros (167 million NOK), while the operating profit stood at minus 9 million euros (108 million NOK). Notably, the platform’s expanded gross margin increased to 21%, resulting in a remarkable 28% generation margin.
Andreas Thorsheim, CEO and founder of Otovo, expressed confidence in the company’s resilience, stating, “The last few quarters have been challenging, but Otovo’s business model has worked. Margins have increased, and revenue per customer is stable. Solar technologies are getting better and cheaper. This makes me more confident than ever that one day there will be PV systems on every roof.”
Looking ahead to 2024, Otovo anticipates stable growth rates driven by improved technologies, lower costs, and the growing trend of homeowners seeking to reduce home energy expenses. Despite regional variations in market dynamics, the company expects a stronger financial performance compared to the previous year.
Furthermore, Otovo is expanding its product offerings to include a range of hardware such as solar and battery storage systems, electric vehicle chargers, and heat pumps. The demand for battery storage in Europe has been particularly high, with over 40% of all installations in the last quarter including battery storage components.
Andreas Thorsheim emphasized the significance of battery storage, stating, “The development in battery storage is phenomenal. I believe that in two to three years, we will see that battery storage will be purchased for every solar system.”
Additionally, Otovo’s savings program remains on track, with increased automation, the integration of artificial intelligence in customer and project processing, digital tools, and strategic team restructuring contributing to operational efficiency and cost savings.
Otovo’s strong financial performance and strategic initiatives underscore its position as a key player in Europe’s renewable energy market, poised for further growth and innovation in the coming quarters.
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