Published on October 28th, 2013 | by Zachary Shahan1
Energy Storage Company Lands $5 Million In Funding For Its $0-Down Energy Storage Offer
Stem Inc. offers commercial and industrial customers advanced energy storage solutions for no upfront cost, allowing immediate energy savings. The company announced at the end of last week that it has now landed $5 million in funding from Clean Feet Investors I, LLC (CFI) in order to continue this offering.
Just as solar leasing and related models have broadened the solar market, presumably bringing in a large number of customers who wouldn’t have gone solar using another route, this financing model is now being applied to the increasingly important energy storage market (though, not yet the residential energy storage market).
Stem and CFI, where the well known cleantech leader Jigar Shah is now a principal, have developed this option together, offering up to 15 MW of energy storage through this model at the moment. They are also looking to develop “other innovative financing offers for customers including performance-based and shared savings financing solutions with the capital from this financing.”
“In addition to breakthroughs in technology, Stem is focused on driving business model innovation,” said Prakesh Patel, Stem’s vice president of capital markets and strategy. “By working closely with CFI, I believe we have created a unique offering to help accelerate customer adoption of Stem systems. This transaction paves the way for Stem to become one of the first efficiency technologies to achieve bankability.”
“Deployment capital is essential for Stem to get their technology in the hands of their customers – many of whom prefer a ‘pay as you save’ offering,” Jigar added.
Image on front page via Stem
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