Business Growth Fund backs sustainable energy firm Ecovision with £3.6m
Eco-friendly infrastructure installer to scale up ‘Hassle Free Boilers’ offering
The Business Growth Fund (BGF) marked its latest backing this week, after it invested £3.6m in sustainable energy products installer Ecovision.
Founded in 2005, Ecovision installs heat pumps, solar panels, biomass and gas boilers in homes, businesses and community buildings across the UK.
Since launch it has grown into one of the UK’s leading providers of sustainable energy systems, having installed its systems in more than 5,000 premises and predicting revenues of more than £20m this year.
In May 2013, the business sold its Free Photovoltaic solar system business to insurer Aviva, which it said represented a substantial return for its existing investors.
Ecovision recently switched its emphasis to its Hassle Free Boilers (HFB) product, an eco-friendly boiler launched in 2013 which claims to save consumers around £330 a year from reduced energy bills. The units have no upfront cost, with consumers paying for a monthly service and maintenance plan instead.
BGF’s growth capital investment is set to initially scale up Ecovision’s HFB offering to create a large installed base of boilers, driving increased contractual revenues. There are also additional plans to scale up the business’ Air Source Heat Pumps (ASHP) product, which the company claims can replace energy from traditional heaters and save on fuel bills.
Ecovision was founded by serial entrepreneur Peter Randall, previously one of the founders of Telco-ISP Telinco, sold in 2000 for $250m prior to merging with Tiscali. Ecovision CEO Randall said: “We are delighted to be working with Business Growth Fund who are not only providing Ecovision with growth capital but also access to their networks and expertise.
“Businesses like Hassle Free Boilers need capital to grow rapidly which then means that customers can access much more cost effective energy by buying heating in a smarter way. We are constantly reminded that gas prices are increasing, Hassle Free Boilers makes a step change in reducing energy bills whilst gas prices continue to rise.”