Successful growth despite market challenges: 1Komma5° sets new standards in the energy transition

Increased sales despite market decline: The success strategy of 1Komma5°

The Hamburg-based company 1Komma5° reaffirmed its position as a leading player in the new energy sector in 2024. Despite a challenging economic environment with declining demand for photovoltaic systems and heat pumps, the company achieved remarkable revenue growth. Total revenue increased from €450 million in 2023 to €520 million in 2024, a new record. Even more impressive is the organic growth, which, after adjusting for acquisitions, increased by 36% from €360 million to €490 million.

This development underlines the innovative strength and strategic foresight of the company, which has consciously decided against a growth-driven acquisition strategy and instead focuses on technological innovations, international expansion and digital business models.

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Strategies for sustainable growth

1. Organic growth as a success strategy

1Komma5° has strengthened its market position not through aggressive acquisitions, but through targeted internal growth. This approach has enabled the company to streamline its business processes, focus on its own technologies, and ensure sustainable, profitable business development.

2. International Expansion – from Helsinki to Adelaide

1Komma5° has further expanded its global presence: 80 locations and 26 showrooms worldwide offer customers the opportunity to learn directly about the latest energy solutions. Expansion into Scandinavia, Australia, and the Benelux countries has significantly contributed to increasing revenue despite weak demand in the German market.

3. Technology and software investments as growth drivers

The company has invested heavily in the development of innovative energy management technologies, particularly in Heartbeat AI and the smart meter rollout. These technologies enable the intelligent control of energy systems, reduce costs for consumers, and increase grid stability.

“With Heartbeat AI, we are creating Europe’s largest virtual power plant and making decentralized energy systems profitably usable.” – Philipp Schröder, CEO of 1Komma5°

4. New business models: Dynamic electricity prices and software services

Instead of relying solely on hardware sales, 1Komma5° offers dynamic, personalized electricity prices in real time – based on a flat software fee. This strategy strengthens the company's recurring revenue model and makes it less dependent on the demand for solar panels and heat pumps.

5. Focus on quality and sustainable production

While many competitors rely on inexpensive Asian products, 1Komma5° deliberately uses high-quality polysilicon from Germany. This decision not only ensures higher product quality but also strengthens the European value chain.

Heartbeat AI: The technological heart of 1.5°

One of the company's most important innovations is the AI-powered energy management software Heartbeat AI, which plays a key role in its future strategy. 40,000 decentralized energy systems are already networked, creating a virtual power plant that optimizes electricity consumption, storage, and feed-in.

Features and benefits of Heartbeat AI

• Virtual power plant: The AI ​​connects thousands of households, optimizes energy flow and reduces grid loads.
• Intraday trading: Customers benefit from additional revenues of up to €1,000 annually, especially with larger battery systems.
• SaaS revenue potential: 1Komma5° expects Software-as-a-Service revenue in the mid-double-digit millions for 2025.
• Future investments: The company plans to invest a further 100 million euros in Heartbeat AI over the next three years to establish the platform as the largest virtual power plant in Europe.
• Compatibility with existing systems: Heartbeat AI is run as an independent subsidiary in order to also reach customers with existing PV systems from other manufacturers.
• International expansion: The AI ​​business is being actively expanded in Sweden, Denmark and the Netherlands.

Market environment and differentiation of 1.5°

While many companies are struggling with declining demand for solar panels and heat pumps, 1Komma5° stands out from the competition through its clear positioning and strategic focus:

• Diversification instead of dependence: The company focuses not only on hardware, but also on software services, energy management and electricity trading.
• Energy supply of the future: Through intelligent pricing and dynamic tariffs, customers can reduce their electricity costs.
• Debt-free growth: Despite high investments, 1Komma5° remains operationally profitable and debt-free.
• Technology as a competitive advantage: With its AI-powered platform Heartbeat AI, the company offers a decisive added value compared to traditional providers.

Future growth plans

1Komma5° has ambitious goals for the coming years:

• Scaling the software business with a further 100 million euro investment in Heartbeat AI.
• International expansion into other European markets and North America.
• Expansion of the virtual power plant to include more than 100,000 connected households by 2027.
• Expansion of showrooms and locations to strengthen physical presence.

CEO Philipp Schröder is optimistic: “We want to accelerate the energy transition for private households and companies by combining innovative technologies with sustainable business models.”

Technological innovations and sustainable energy solutions

Despite a challenging market environment, 1Komma5° impressively demonstrated in 2024 that successful growth is possible with the right strategy. Through technological innovations, smart market expansion, and a strong focus on software and digital business models, the company further solidified its position as one of the leading players in the renewable energy sector.

With its combination of Heartbeat AI, virtual power plant, dynamic pricing and sustainable production, 1Komma5° sets new standards in the energy industry – and impressively demonstrates that the future of energy supply can be not only sustainable, but also economically attractive.

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