News 05.03.2025

PAUL Tech concludes project financing with Solas Capital

Klaus Schmidtke

Presseinformation: PAUL Tech schließt mit Solas Capital Projektfinanzierung ab. PAUL Net Zero sorgt bis Jahresmitte 2025 für erste 5.000 emissionsfreie Wohnungen in Bestandsgebäuden

Mannheim/Munich, March 4, 2025 – PAUL Tech AG has concluded a project financing arranged by Solas Capital to equip the first 5,000 or so residential units with PAUL Net Zero as a technology solution for local building heating. The installations in the buildings will take place in the first half of 2025. Agreements with customers for a total of 26,000 units were already announced last year. A further 30,000 units are already planned for 2025.

Following the financing of the “PAUL Performance” product by the Solas Sustainable Energy Funds (SSEF) advised by Solas Capital, the successful financing partnership between Solas Capital and PAUL Tech AG is being continued with the financing for PAUL Net Zero.

PAUL Net Zero combines AI-supported energy management systems in the boiler room with heat pumps and photovoltaic systems. The technology significantly improves the energy efficiency of residential buildings up to class A and makes them future-proof for owners and tenants on the way to the heating transition. Equipping properties with heat pumps is subsidized by the Federal Office of Economics and Export Control (BAFA) as part of the Federal Subsidy for Efficient Buildings (BEG).

Let's talk about PAUL Net Zero – get in touch now

We are very pleased about the successful completion of the project financing and the innovative collaboration with Solas Capital and all partners involved. This financing is an important step on our way to realizing sustainable and emission-free solutions for existing properties. We will now implement PAUL Net Zero on a large scale and thus make our contribution to a successful heating transition. Owners and tenants alike will benefit from this.

Sascha Müller, CEO PAUL Tech AG

The positive results of the systems already installed in recent months confirm the success of PAUL Net Zero: the heat supply to the houses, most of which were built between 1950 and 1980, runs smoothly after the changeover, even in harsh winter conditions. The outstanding efficiency values - which result in a third of the primary energy requirement - have been further increased through the use of artificial intelligence and deep integration of the heat pump cascade control system.

With the installation of PAUL Net Zero, the direct CO₂ emissions of the buildings are reduced to almost zero. In the CRREM (Carbon Risk Real Estate Monitor) assessment, the degree of decarbonization improves considerably, as the use of heat pumps eliminates dependence on fossil fuels and significantly reduces the specific emissions per kWh of heat provided.

PAUL Tech AG has invested tens of millions in the development of this pioneering technology in the past year alone.

Let's talk about PAUL Net Zero – get in touch now

We are very happy to be able to support PAUL Tech AG in its next step towards becoming a supplier of decarbonized heat. The financing for PAUL Net Zero is in line with our corporate goal of saving CO₂ and energy with every investment.

Sven Degens, Partner and Managing Director of Solas Capital

The investor advised by Solas Capital – a large German insurance company – benefits from long-term stable cash flows and receives a fundamentally green investment with an attractive return that leads to tangible, measurable CO₂ savings. This pioneering project demonstrates an economically viable solution for capital-intensive energy-efficient refurbishment in the building sector and will lead to further projects.

Further information on project financing:

PAUL Net Zero 1 GmbH, a subsidiary of PAUL Tech AG, took out a subordinated loan of EUR 2.3 million from a family office at the end of December 2024. This loan serves as mezzanine financing for a credit volume of EUR 13.2 million. The financing instrument was issued on February 14, 2025 to a fund of a large German insurance company advised by Solas Capital.

About PAUL Tech AG

PAUL Tech AG, based in Mannheim, Germany, makes existing properties green and valuable. With our AI-supported PAUL Net Zero technology, we transform buildings into energy-efficient, climate-friendly investments - and increase their returns in the process. Through the intelligent combination of heat pumps, photovoltaics and digital control, our customers achieve the highest energy efficiency classes and meet future ESG requirements. As a partner to leading real estate companies, we are already supporting 160,000 residential units on their way to a sustainable future.

About Solas Capital

Solas Capital is an investment advisor specializing in energy efficiency projects, shaping the transformation to a climate-neutral economy through innovative financing solutions. Solas Capital offers institutional investors access to the fast-growing asset class of energy efficiency infrastructure and enables technology partners and project initiators to complete and scale their energy efficiency service business models through customized financing. Founded and managed by investment experts with many years of experience, Solas Capital works with clients across Europe, particularly in the sectors of energy efficiency in buildings and industry as well as solar power for self-consumption. Solas Capital advises the Solas Sustainable Energy Fund, which is supported by the European Investment Bank and the European Union's LIFE program.

www.solas.capital

Let's talk about PAUL Net Zero – get in touch now