Good Energy Group has acquired solar, battery and electric vehicle charger installation company Wessex EcoEnergy for an initial consideration of £2.5 million.
Good Energy said it had established itself as a solar installer since acquiring Igloo Works in December 2022 and it was now positioned to offer premium solar installs, benefiting from a market it expects to grow by 9.9% annually to 2030.
Wessex will be retained as a brand but will offer a full energy service package including solar, storage, heat and export tariffs for its customers. Services will be marketed to both Good Energy’s existing 270,000 customers and new prospects focused in the South West of England, doubling Wessex’s capacity and targeting 600 panel installations per month within 18 months.
Deferred consideration of up to £1.5m is payable in cash by Good Energy dependent on the achievement of certain financial and non-financial milestones, over an 18-month transition period to 31 December 2024. These are split broadly equally across service quality, management transition, increased installation capacity and earnings run rate.
Meanwhile Good Energy said its profit in the first half of the year will be higher than expected driven by falling and less volatile wholesale commodity costs, but it expected, the second half will be loss making given the interplay between hedged prices of power and gas and current falling market prices.