South African solar energy company Hohm Energy has entered business rescue due to cash flow challenges and its inability to service existing debts, SurgeZirc SA has learned.
As a result, the company has terminated the contracts of an undisclosed number of employees and halted all operations. A business rescue practitioner will investigate Hohm Energy’s affairs to determine the appropriate action.
In a statement, Franc Gray, CEO of the parent company Spark Energy Services, confirmed that Hohm Energy is no longer trading. Gray explained that the company is working closely with legal counsel to understand its future better.
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According to CIPC records, Hohm Energy entered business rescue on 31 July. Franc Gray was added as a director on 2 August. Calls to Hohm Energy and Glint, a subscription service launched by the company, were directed to an answering bot that subsequently drops the call.
This development may not come as a surprise to some customers who have expressed frustration over recent service issues. For example, someone described difficulties getting warranty services after experiencing problems with their solar power system’s Wi-Fi dongle.
Their attempts to follow up with Hohm Energy were met with repeated delays and unfulfilled promises, suggesting deeper operational issues within the company.
Hohm Energy’s abrupt financial troubles come only months after it successfully raised $8 million in a record seed-funding round. The company had previously touted a favorable shift in the market, making solar installations more accessible to middle-income households.
Co-founder and CEO Tim Ohlsen noted a significant reduction in the cost of solar installations, making the technology viable for a broader audience.
However, these financial difficulties cast doubt on the company’s ability to capitalize on these market opportunities and uphold customer trust.
