The Future of Employee Ownership in Clean Energy Installation
Imagine the workers installing your home’s heat pump or electric vehicle (EV) charger having a stake in the company they work for. This vision is driving Celsius Companies, a new venture in the Philadelphia region, which is aiming to transform small HVAC, electrical, and clean energy contractors into employee-owned enterprises.
Celsius Companies, backed by Spring Point Partners, aims to combine an “entrepreneurship through acquisition” strategy with an employee stock ownership plan (ESOP). The ESOP will allow workers to own shares in Celsius, which controls the operating companies under its umbrella.
“The bottom line of this is, how do you create wealth for the folks who are doing the work?” comments Matt Bergheiser, the founder of Celsius. After leading University City District in workforce and economic development for 16 years, Bergheiser was inspired to launch Celsius to offer stable, well-paying jobs to frontline workers.
Initially, Celsius acquired two contractors in southern New Jersey: D&L Custom Services, specializing in geothermal heating and cooling, and Spotlight Energy Solutions, which focuses on EV charger installations. These companies now share clients across Philadelphia, New Jersey, and Delaware.
Bergheiser’s commitment to keeping businesses locally rooted and beneficial to employees attracted the previous owners of D&L and Spotlight, who favored Celsius over private equity buyers. The capital from Spring Point will aid Celsius in acquiring more companies and establishing the ESOP.
“We created insurance plans which didn’t exist. We created or improved 401k plans, which didn’t exist,” Bergheiser notes. He also highlights the development of pathways to promotions and a profit-sharing plan for workers.
According to the National Center for Employee Ownership (NCEO), workers at ESOP-owned firms had median retirement savings of $80,500 in 2023, significantly higher than the $30,000 held by non-ESOP workers. This underscores the financial benefits of employee ownership.
Opportunities for Frontline Workers
The transition to clean energy requires more electricians, HVAC technicians, and installers, yet these workers seldom gain ownership stakes in their companies. With many trade-business owners nearing retirement, HVAC and electrical contractors present prime opportunities for employee ownership.
“Both HVAC and electrical, particularly HVAC, are prime targets for private equity acquisition,” Bergheiser explains. Private equity’s involvement in HVAC deals has grown from about 8% in 2023 to over 50% by mid-2026. Celsius, however, aims for employee ownership rather than resale to private equity buyers.
Bergheiser’s approach involves acquiring small operators, upgrading their back-office systems, and scaling them regionally while ensuring employee ownership is the ultimate goal. This strategy helps build wealth for Celsius’ workforce and retains businesses within their communities.
Bergheiser is also introducing an apprenticeship program to attract diverse talent and expand the workforce. “We openly talk with [workers] about, ‘Hey, you’re an HVAC technician, you’re an electrician, but you’re also on the front lines of this climate change problem,’” he says.
At D&L and Spotlight, entry-level workers begin with an average wage of $28 per hour, with potential to earn six-figure incomes with experience and overtime. “Our companies, it’s largely young men working at them. I think they’ve got to be given an opportunity and a path to feel like they’re part of something that’s bigger than themselves,” Bergheiser states.
Employee-owned companies benefit from lower turnover, higher productivity, and resilience during economic downturns. This is crucial in an industry already facing a shortage of skilled workers.
Building Wealth Through Employee Ownership
With Spring Point’s backing, Bergheiser plans to build a portfolio of six businesses over five years, generating up to $35 million in annual revenue and employing up to 175 people, all as employee-owners.
Spring Point has become a minority owner in Celsius and plans to sell its stake to the ESOP. This aligns with investor concerns about the holding company model, which doesn’t necessitate quick exits from well-functioning companies.
Other similar initiatives are emerging, such as New York-based Nine Dean, backed by the Ford Foundation, and Baltimore-based Obran, which is a “worker-owned cooperative conglomerate.” These ventures aim to create quality jobs and transition to employee ownership.
“We view employee ownership as a critical level towards more equitable wealth building,” says Norbert Cichon of Spring Point. The firm has also supported Apis & Heritage Capital Partners, which facilitates employee-led buyouts, particularly for companies with low-income workers of color.
The vision for Celsius involves focusing on trades businesses that advance clean energy deployment, including HVAC, EV infrastructure, and solar panel installation. Bergheiser highlights that although he lacks technical expertise, he excels in marketing, sales, and building strong teams. “But they are the ones who are going to create the value in this enterprise,” he concludes.
Original Story at impactalpha.com