An energy technology firm aiming to support the transition to net zero in the residential housing sector has raised £5.5 million investment.
Cardiff-based Sero Technologies has developed digital tools for landlords, mortgage lenders and housebuilders to design and deliver cost-effective low carbon solutions for both newbuild and existing homes.
With over 10,000 homes within its identified pipeline, Sero has forged strong relationships within the housing sector. It says it has created tailored net-zero energy retrofit plans for homes, assuring them using building passports and managing them using its smart home energy management system The BEE (Building Energy Engine).
Legal & General and Hodge’s investment will support Sero in its next stage of growth, as well as its aims to support the delivery of net-zero financial products with institutional partners.
Legal & General’s clean energy portfolio includes offshore wind, onshore wind, solar PV, EV-charging and ground-source heat pumps. It is one of the UK’s largest housebuilders by volume and has committed to deliver net-zero operational emissions from 2030 across its residential portfolio.
Hodge, which is 79% owned by the Hodge Foundation, is a specialist in mortgages, commercial finance and savings.
“Housing is a major contributor to carbon emissions, requiring some of the most challenging and immediate overhauls of any sector. We are delighted, therefore, to be investing in a business that will play a major role in putting UK housing on a pathway to net zero, whilst providing significant job creation in the clean energy sector and supporting the UK’s SMEs,” John Bromley, head of clean energy at Legal & General Capital, said.
“As an energy transition investor, we are aiming to support the scale up of innovative businesses capable of delivering the solutions needed to reduce emissions throughout the economy, and Sero represents another perfect partner for us in this space.
“We look forward to working with the Sero team to grow their innovative business as well as utilising their expertise across our own housing platform.”
David Landen, CEO at Hodge, said: “I’m delighted to be able to announce Hodge’s investment in Sero. Our homes are one of the largest contributors to the UK’s carbon emissions and all new and existing homes will need to evolve to enable us to meet our 2050 net zero carbon target.
“Sero seamlessly guides people through understanding their own path to net zero as well as supporting them in the steps required to meet that goal.
“Apart from both being proud Welsh businesses, our organisations share a common purpose of making lives and society a better place. We can build a strong partnership to help all customers with this vital part of the UK’s carbon transition.
“The investment is part of our strategy to invest in exciting technology businesses that have close alignment to both our business and our purpose.”