Residential battery, solar PV and heat pump commercial due diligence

A leading global venture capital firm with over £10bn in funds under management partnered with LCP Delta to assess a strategic investment opportunity in a residential energy technology provider operating in Germany and Austria. The company offered a bundled solution of battery storage, solar PV, and heat pumps for residential customers. The investor sought to validate the company’s market potential and competitive positioning to inform their investment decision.

Client needs and key question(s)

The client required an independent, data-driven review of the target’s business plan and market outlook. Key questions included:

• What is the current and projected market size for residential batteries, solar PV, and heat pumps in core markets?
• How does the target’s solution compare against competitors?
• What is the policy and regulatory outlook for these technologies, and how might it impact growth?
• Where are the short-term deployment opportunities across core markets?

What we did

LCP Delta conducted a commercial due diligence focused on four core areas:

• Market sizing and forecasts: Delivered annual technology sales projections, split by country and technology.
• Installed base analysis: Assessed historical deployment to identify regions and customer segments with high uptake and potential for accelerated adoption.
• Regulatory and policy review: Analysed national and regional policy frameworks supporting residential energy technologies, including subsidies and incentive schemes.
• Competitive landscape: Evaluated the target’s proposition relative to market incumbents and challengers, including distribution models and product bundling strategies.

The results

The insight we provided enabled the client to take a clear-eyed view of the risks and opportunities associated with the investment, ultimately leading to the decision not to proceed with the opportunity.