It may only be available in the USA and just to commercial and industrial customers for now; but zero dollars up front energy storage has arrived and heralds another early stage in the second energy revolution.
Stem has a vision is to bring energy consumption into the 21st century through distributed storage technology. The company focuses on developing energy storage solutions that “protects companies from unnecessarily high electricity costs without requiring any changes to the way they run their businesses.”
Last week the company announced it had secured $5 million funding to underpin a financing arrangement where commercial and industrial customers can integrate a Stem energy system at no upfront cost.
The new financing model will enable up to 15 MW of energy storage to be deployed.
According to Stem:
“The Stem solution stores energy during non-peak hours for use during expensive peak hours, helping companies slash their energy costs. The beauty of the Stem system is that it doesn’t require behavior changes or reductions in electricity usage to achieve savings. It simply shifts when companies draw electricity from the grid, allowing them to focus on their core business.”
The fund has been backed by Clean Feet Investors I, LLC (CFI).
“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,” said Jigar Shah, a principal at Clean Feet.
Stem’s solution is based on Lithium Iron Phosphate batteries (LiFePO 4) and can be easily integrated with a company’s solar array.
While the first energy revolution has been driven by households installing solar panels; businesses are increasingly turning to solar to reduce operating costs. According to Australian commercial solar provider Energy Matters, businesses can now self-generate electricity at a lower cost than purchasing from a utility.
“If you are paying more than 20c/kWh for your daytime electricity usage, a system sized to your daytime load will provide a payback time of between 5 and 7 years – after which time, the electricity you generate is essentially free,” says the company.
As energy storage technology evolves and becomes more affordable, the second energy revolution will allow households and companies to save even more on their power bills.
