TESVOLT AG has strengthened its financial position by converting €18.6 million worth of convertible bonds into equity, a move aimed at enhancing its balance sheet and expanding financing flexibility.
The conversion, carried out among key existing investors, comes on the back of strong business performance, with the company reporting a 50% revenue growth in 2025. The development reflects growing investor confidence in the rapidly evolving energy storage sector, which is benefiting from declining battery costs and increasing demand for grid flexibility.
According to CEO and Co-founder Daniel Hannemann, falling component prices—particularly for lithium batteries—and the rising importance of flexible energy solutions are accelerating the profitability and deployment of storage systems in Germany. He added that TESVOLT is well-positioned due to its integrated approach, offering battery storage, system integration, operation, and energy trading services under one umbrella.
The strengthened equity base follows significant investments by the company in new product development, the expansion of its subsidiary TESVOLT ENERGY for energy trading, and infrastructure upgrades at its headquarters in Wittenberg.
The broader market environment also remains highly favorable. Germany’s total installed energy storage capacity reached approximately 24 GWh by the end of 2025. New installations grew sharply, with a 47% increase in the industrial segment and an 81% rise in utility-scale deployments compared to 2024, according to data from RWTH Aachen University.
Looking ahead, TESVOLT expects accelerated growth in energy storage demand, driven by rising electricity consumption from AI applications, data centers, and the ongoing electrification of multiple sectors. The company believes that mid-sized and large-scale storage projects will see exponential growth in the coming years.
With improved financial strength and a supportive market environment, TESVOLT aims to capitalize on the next wave of energy storage expansion, positioning itself as a key player in Europe’s transition toward a more flexible and sustainable energy system.
