Porsche Invests in Carbon Neutral Home Startup

Porsche Ventures Invests in 1Komma5°, a Green Home Solutions Startup

Porsche’s corporate investment division has acquired a minority ownership position in 1Komma5°, a German company established just five months ago. This startup focuses on providing comprehensive solutions for households aiming to achieve carbon neutrality, encompassing energy storage systems, electric vehicle charging infrastructure, and solar energy solutions.

Recent Investments by Porsche Ventures

The financial details of this investment remain undisclosed. This move represents the latest in a series of investments made by Porsche Ventures over the past two years.

Previous investments include TriEye, an Israeli sensing technology firm.
RidePanda, an online dealership specializing in electric micromobility solutions, also received funding.
Tactile Mobility, a virtual sensing startup, is another portfolio company.

A Shift in Investment Focus

This particular investment signifies a slight divergence from Porsche Ventures’ usual concentration on mobility technology.

Patrick Huke, head of Porsche Ventures Europe and Israel, explained that the investment underscores Porsche’s commitment to smart city initiatives and sustainability.

The Founding of 1Komma5°

1Komma5° was founded by Micha Grueber, who serves as the company’s CFO, and Philipp Schröder. Schröder previously held positions at Tesla and Sonnen, a prominent energy storage systems company.

Addressing a Gap in the Market

The company’s name references the Paris Climate Agreement’s goal of limiting global temperature increases to 1.5°C. 1Komma5° is pursuing a unique strategy to become a one-stop shop for sustainable home energy solutions.

Schröder highlighted that current market players primarily focus on selling individual components like solar panels or energy storage. A key issue is the lack of integration between these decentralized energy assets.

The Importance of Interconnectivity

Schröder argues that a decentralized energy system, where every home has heat pumps, charging stations, and storage, will encounter challenges if these systems cannot communicate effectively at both the grid level and with each other.

Software and Acquisitions as Key Strategies

1Komma5° intends to integrate these components through both its proprietary software and strategic acquisitions.

The company is actively seeking to acquire leading electrical installation companies in Germany, with plans to expand into Austria and Switzerland. These companies specialize in renewable energies, including solar, heat pumps, and energy storage.

1Komma5° will provide these acquired companies with enterprise software for administrative tasks, customer relationship management, and energy management software to connect charging, solar, and storage systems.

Interconnecting Energy Components

A core aspect of 1Komma5°’s business model is the interconnection of these components at both the home and grid levels, as stated by Schröder.

Acquisition Progress and Future Plans

To date, the startup has completed five acquisitions using a combination of cash and stock.

Over the next two years, 1Komma5° plans to utilize €100 million in cash and stock to acquire additional renewable energy-focused installation companies.

The company is targeting businesses with revenues between €5 million and €20 million, prioritizing those with skilled labor forces rather than sales-focused organizations that rely on outsourcing.

Retail Expansion and Brand Experience

The funding from Porsche will support 1Komma5°’s expansion plans, including the opening of retail locations designed with a premium aesthetic reminiscent of Apple stores.

These showrooms will serve as educational hubs, showcasing the essential components of a carbon-neutral home. Customers might encounter a Porsche Taycan alongside home chargers, energy storage solutions, and solar panels.

The first showrooms are scheduled to open in Hamburg’s Binnenalster area and in Lingen an der Ems during the first quarter of 2022.