Aira raises €150 Million to accelerate Europe’s shift from gas to clean home heating

Image Credit: Aira

Swedish direct-to-consumer clean energy company Aira has raised €150 million ($175 million) in equity financing to speed up the electrification of residential heating across Europe.

The investment, announced on Monday, comes from Aira’s existing backers: Altor, Kallskär¹, Kinnevik, Lingotto, and Temasek. With this new round of capital, Aira plans to scale its operations and broaden its intelligent clean energy offerings.

A portion of the funding will be allocated to strengthening Aira’s research and development centre in Sweden, where the company is developing an integrated portfolio of products. At the same time, it will increase production capacity at its manufacturing facility in Wroclaw, Poland.

Beyond production, Aira intends to deepen its presence in existing European markets and build stronger partnerships with major players in both the home and energy sectors. The company’s strategy is not only to expand its market reach but also to deliver meaningful cost savings to customers.

Since its launch in June 2023, Aira has entered Germany, Italy, and the United Kingdom, quickly establishing itself as one of Europe’s leading clean energy companies. The firm already reports an annual sales run rate of €200 million ($233.71 million).

Aira’s customer-focused approach is central to its growth. It offers households a simple monthly payment plan, full end-to-end service, and a 15-year Aira Guarantee, which makes adoption of heat pumps more accessible and less risky.

Today, Aira employs around 1,200 people and operates 18 local hubs as well as four training academies dedicated to producing highly skilled heat pump installers. The need for this workforce is pressing. Across Europe, roughly 130 million gas boilers remain in use, making residential heating the third-largest source of carbon dioxide emissions on the continent. These boilers alone account for approximately 10 percent of Europe’s total emissions.

“This investment reflects the strong, long-term support of our investors and enables us to build on the substantial foundation we’ve established as we transition from a start-up to scale-up,

“It empowers us to double down on our mission to take Europe off gas by expanding with operational excellence, launching innovations, and accelerating our growth to bring clean energy-tech to millions of homes,” said Peter Prem, Aira Group Chief Executive Officer.

By replacing a gas boiler with an air-source heat pump, households can reduce their heating costs by up to 40 percent. When paired with clean energy tariffs, carbon emissions from heating can be reduced by up to 100 percent. Aira believes this combination of affordability, innovation, and sustainability puts it at the forefront of Europe’s energy transition.

“The European heat pump market is expected to reach more than €150 billion ($175 million) by 2030, and with our vertically integrated model and world-class products, Aira is uniquely positioned to transform home energy across Europe,” said Prem.

“Backed by world-class investors, we’re building a clean energy-tech leader with expert teams and a clear mission to decarbonize residential heating, all while lowering energy bills and increasing household comfort for millions,

“We’re just getting started. Aira is ready to lead the clean energy transition – one home at a time,” he added.