thermondo secures 50 million euros

Berlin-based heating installer thermondo, market leader in the heat pump sector, has secured an initial loan volume of 50 million euros for its thermondo flex financing program. The aim of the program is to make the switch to climate-friendly heating solutions much easier and more widely accessible through affordable instalment payments.

Heat pump in installments

With the thermondo flex financing model, homeowners can finance the installation of a heat pump over 15 years in fixed monthly installments at a standard market APR of 6.00 percent. Before state subsidies are deducted, the monthly installments average less than 300 euros. If the state subsidy of up to 70 percent is utilized and used for a partial repayment, the installment can even fall to less than 100 euros per month.

Customers retain ownership of the system and benefit from permanently low heating costs in addition to the state subsidy. Special repayments or a complete redemption are possible at any time free of charge. The entire process, from advice and application to contract management, is handled directly by thermondo.

Financing structure via special purpose vehicles ensures scalability

The financing is carried out in cooperation with a British bank and is processed via special purpose vehicles (SPVs). These special purpose vehicles, which are legally separate from the operating business, take out loans, which in turn are used to pre-finance the installations. Repayment is made via monthly customer payments.

This structure allows thermondo to decouple the risk from the core business, secure liquidity and make installment purchasing scalable. At the same time, the process remains streamlined for customers: financing is handled entirely via thermondo, with no need for separate bank contact. The check is carried out digitally using standardized criteria such as income, age and creditworthiness.

High demand meets financing gap

The market for heat pumps is growing significantly: according to the Federal Association of the German Heating Industry (BDH), sales figures rose by 35% year-on-year in the first quarter of 2025. Despite growing interest, the high initial investment remains an obstacle for many households: according to a study by DENEFF, around a third of homeowners lack the necessary capital to replace their heating system.

Replacing a heating system is not just a question of technology, but also of affordability. Our partner recognizes the potential of the heat pump - and is helping us to make it accessible to broad target groups.

Jason Goldstein, VP Strategic Finance at thermondo

Climate-friendly heating accessible to more households

With thermondo flex, the Berlin-based company is closing a key gap in the heating transition: affordability. The new financing solution significantly lowers the barriers to entry for many homeowners and could therefore become a catalyst for the widespread decarbonization of the heating market in Germany. Most recently, in spring spring 2024 about the acquisition of Febesol by thermondo in the spring of 2024.