Good Energy sees H1 2023 revenue increase by 45.6% YoY

Renewable energy company Good Energy has seen its H1 2023 revenue increase by 45.6% year-on-year (YoY) driven by higher tariffs due to high wholesale power and gas costs.

These rising wholesale costs led to price rises throughout the year leaving Good Energy on £156.1 million for revenue in H1 2023. In H1 2022, the firm’s revenue stood at £107.6 million.

Good Energy also reported a staggering 168% YoY increase in reported gross profit to £32.7 million whereas 2022’s figure stood at £12.2 million. The energy company explained that this increase reflected a recovery from a loss made in H1 2022 as well as a strong H1 2023 performance.

It is important to note that this increase is not expected to be maintained into H2 2023 due to the way power purchase agreements (PPAs) have been formed.

On this, the firm stated that “electricity PPAs, which are typically contracted over a 12 to 18 month period, provided a cost advantage over the H1 period, although this will reverse in H2 as commodity costs have fallen steadily since September 2022 and tariffs have significantly reduced from April 2023 onwards following those wholesale cost reductions”.

Last year, Good Energy stated that 2022 saw “near record levels” of installations with an increase of over 125% year-on-year to 132,000. This momentum has been carried into H1 2023 with the firm noting that UK solar sales in the first six months rose to over 90,000 installs and forecast to increase over 18% YoY.

H1 2023 saw the company acquire solar installation business Wessex EcoEnergy in a deal worth £2.5 million in a bid to cater for the growing interest around solar. This was touched upon within the results with Good Energy outlining that Wessex is “on track” for 200 installs in 2023. The business plan will look to double capacity by the end of 2024.

Commenting on the H1 financial results, Nigel Pocklington, CEO of Good Energy, said: “We have made great strides through acquisitions to offer new hardware services and launching new services whilst delivering a positive performance for the first half of the year as we continue to navigate a volatile energy market.

“Our robust cash position serves dual purposes: enabling strategic growth initiatives and providing a buffer against market uncertainties. Whilst we expect some of the energy trading factors which have bolstered profit to unwind through the remainder of the year, we are in a very positive financial position for Good Energy to continue to grow and capitalise on its untapped potential.

“With its legacy as a truly renewable supplier serving one of the UK's largest solar microgenerator customer bases, Good Energy is uniquely positioned to continue to launch and grow services that make it easy for customers to go green. Our goal is to be a one-stop solution for green-minded customers, offering a suite of products that help them reduce carbon, save money, and stay with us longer. By focusing on multiple product areas that function harmoniously, we aim to lower churn rates, cut acquisition costs, cross-sell services and boost the overall lifetime value of our growing number of customers.”

Good Energy has been expanding into the heat industry via the acquisition of heat pump installer Igloo Works for an initial sum of around £1.75 million, as reported by sister publication Current± in December 2022.

It is also worth noting that electric vehicle (EV) mapping service Zapmap saw its registered users increase by 52% YoY to 683,000. Monthly active users also increased to a record figure of 285,000 for the platform and is on track to “more than double” revenue in 2023.