Green Software Startup Secures $1.2 Billion to Expand Solar in EU
(Bloomberg) -- Berlin-based climate technology company Cloover has raised more than $1.2 billion to help European households cut emissions.
The company provides software to help installers of rooftop solar, home batteries, heat pumps and other green residential technologies manage their business, while helping homeowners finance their purchases and optimize energy usage. Currently operating in Germany and four other European countries, Cloover says it will use the fresh round of debt and equity funding to expand into new markets such as France and Italy. It will also add new services to its software, such as helping installers with product procurement.
Improving financing is “the only way to make the energy transition a reality,” said Jodok Betschart, Cloover’s co-founder and co-chief executive officer. In Europe, small companies handle the bulk of residential renewable installations, yet they often lack the ability to offer financing at a time when many homeowners are hesitant to make lump-sum payments, Betschart said.
The announcement comes as demand for residential solar has softened in the European Union due to reduced subsidies, economic uncertainty and high interest rates. Fewer than 10 gigawatts of solar home systems were added in 2025, down almost 30% from the prior year, according to a December report published by SolarPower Europe. That slowdown contributed to the bloc’s first year-on-year annual decline in new solar installations since 2016, the industry group said, adding that the EU is likely on track to miss its target of installing 750 gigawatts of capacity by 2030.
Despite the recent dip in residential solar installations, people’s desire for lower utility bills hasn’t gone away, said Shawn Xu, a partner at Lowercarbon Capital. By offering financing, Cloover can work as “an accelerant” to enable more people to decarbonize their homes, Xu said.
Cloover’s latest funding round includes $22 million of equity from venture capital firms, including Lowercarbon Capital and Bosch Ventures, alongside $1.2 billion of debt from an unnamed European bank.
The company has financed roughly $100 million worth of green assets for European homes since its founding in 2023, Betschart said. Cloover, which charges installers for its services and also sells insurance to homeowners, became profitable last year. It aims to increase revenue fivefold to about $500 million in 2026.
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