Dive Brief:
- Stem Inc., an energy storage startup with a $0-down, pay-as-you-save financing model, has received $5 million in funding from Clean Feet Investors, of which prominent cleantech investor Jigar Shah is a principal.
- Stem can provide commercial and industrial customers up to 15 MW of energy storage under the pay-as-you-save model.
- Stem is considering “other innovative financing offers for customers including performance-based and shared savings financing solutions with the capital from this financing.”
Dive Insight:
This model is based on the rooftop solar financing model which was so successful in the residential market. Considering the combined potential of solar and storage, this news should not be taken lightly. While energy storage technology is not yet cost-effective, a move towards pay-as-you-save bundled rooftop solar and energy storage would effectively minimize the need for utilities and lead to an increasingly decentralized power grid.
