VC funding down for smart grid, efficiency firms, but BTM storage bucks the trend

Dive Brief:

  • Funding, including mergers and acquisition activity, for smart grid, efficiency and energy storage companies slowed considerably in the third quarter to $102 million, from $433 million in the second quarter, according to Mercom Capital’s latest quarterly report.

  • The smart grid sector raised just over $11 million in the third quarter compared with $222 in the second quarter. Venture capital funding for the energy efficiency sector also fell in the third quarter, to $61 million compared with $86 in the second quarter.

  • Battery storage venture funding also fell — $30 million in the third quarter compared from $125 million in the second — but funding for commercial and residential battery storage projects bucked the downward trend, bringing in a record $625 million in four deals in the third quarter, compared with $175 million in two deals in the second quarter.

Dive Insight:

Funding activity for the smart grid, energy efficiency and energy storage sector was down broadly in the third quarter compared with second quarter data, according to Mercom Capital. The declining numbers repeat results reported last year by Mercom.

Mercom says VC funding for smart grid companies, at $11 million in the third quarter, was the lowest quarterly total since it began tracking funding activity.

The bright spot in the quarter was the $625 million in residential and commercial project funds raised for battery storage. That compared with $175 million raised in the second quarter.

That included $300 million in financing for residential solar-plus-storage raised by Tabuchi America in the quarter and $200 million raised by Macquarie Capital for Advanced Microgrid Solutions for commercial sector projects, as well as $100 million raised by Starwood Energy Group for Stem for its commercial behind-the-meter storage systems.

Additionally, Sharp’s Energy Systems and Services Group, a developer of a behind-the-meter storage systems for C&I peak shaving, announced $25 million in funding for solar-plus-storage applications.

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Filed Under: Energy Storage Distributed Energy
Top image credit: Stem