California-based commercial and industrial energy storage provider Stem has secured up to $100m working capital to finance its ‘no upfront cost’ installations.
The $100m funding is being provided through affiliates of B Asset Manager, an investment adviser based in New York City.
The ‘behind-the-meter’ energy storage company offers long-term financing options that are similar to the leases and power-purchase agreements used in the solar PV sector, without upfront front to the consumer.
“The value proposition to the customer is a lease structure where we roll up the hardware and software into one number at a monthly level,” said John Carrington, CEO of Stem.
The relationship with B Asset Manager will help Stem tap into emerging markets like New York State, where public-private investments and new incentive programs are driving battery-based storage technology development and deployment in an effort to relieve grid congestion. The first project funded through this initiative – a 1.1 MW installation in New York – is scheduled for completion in Q1 2015.
Carrington told Greentech Media that Stem will keep on using lithium batteries in its systems and is open to different battery makers. “We’re always looking at different suppliers. There’s a lot going on in the battery world right now. We’re excited about some of the bigger manufacturers that are really engaged in this long-term and have made it a strategic pillar of their companies.”
“As we expand into more markets, we’re going to need more of that financing. We’re in Hawaii, New York, and we’re winning in California,” added Carrington.
Stem recently started to supply its distributed energy storage devices to the California independent system operator market.
Stem has also received venture funding from Angeleno Group, Iberdrola and GE Ventures.