Berlin's thermondo gets €50M for heat pump financing
With over 50,000 installed systems and more than 1,000 employees thermondo is a major enabler of Germany's residential energy transition. © thermondo
Berlin-based thermondo, Germany's largest heat pump installer, has secured an initial credit volume of €50 million for its installment payment offering "thermondo flex." This funding enables the company to provide approximately 1,600 heat pumps on installment plans to homeowners across Germany.
According to the company's press release, the financing solution addresses a critical barrier in Germany's energy transition. "For the energy transition, we need financing solutions that work for everyone," comments Jason Goldstein, VP Strategic Finance at thermondo. "Our banking partner has recognized the future potential of heat pumps and supports us in offering homeowners an affordable switch through installments."
The thermondo flex model eliminates the need for substantial upfront investments typically required for heat pump installations. Instead, costs are spread over 15 years in fixed monthly payments at a market-standard effective annual interest rate of 6.00 percent. Average monthly rates before government subsidies are under €300, but homeowners receiving the maximum 70 percent state subsidy can reduce payments to below €100 per month when using subsidies for partial early repayment.
The financing structure utilizes Special Purpose Vehicles (SPVs) – entities legally separated from thermondo's operational business – minimizing financial risks while stabilizing cash flow. An international partner bank initially finances the offering, with customer payments flowing back through these specialized entities.
Market data supports the timing of this initiative. Heat pump sales surged 35 percent in Q1 2025 compared to the previous year, according to the German Heating Industry Association (BDH). However, a survey by the German Corporate Initiative for Energy Efficiency (DENEFF) reveals that up to 30 percent of German homeowners lack sufficient financial resources for heat pump transitions.
thermondo's solution directly addresses this financing gap, making efficient, cost-effective, and climate-friendly heating accessible to households with limited budgets. The digital application and processing system integrates seamlessly into thermondo's customer journey, maintaining simplicity while expanding access to sustainable heating technology.
Founded in Berlin in 2013, thermondo has grown into a major enabler of Germany's residential energy transition, with over 50,000 installed systems and more than 1,000 employees following its acquisition of photovoltaic company FEBESOL in April 2024.
