Stem, an energy storage provider that helps customers avoid peak demand charges, has raised $80 million in series D funding, having built up a $500 million project finance war chest comprising both debt and equity.

The Millbrae, Calif.-based company develops battery projects before dropping them down into special purpose financing vehicles co-owned by its project finance investors, which share in the fixed payments from customers.

The developer secured $100 million from Starwood Energy Group Global in August 2016, taking its total project finance capacity to $350 million at the time. Generate Capital and Clean Fleet Investors have also contributed to the firm's project finance coffers.

Ontario Teachers’ Pension PlanTemasek Holdings and Activate Capital, meanwhile,  participated in the series D corporate equity raise.

"The interest in our series D round was more than I expected," said John Carrington, Stem's ceo. "We had interest from private equity firms as well as more international funders than ever before."

While the exact project financing model varies based on each project and financier, Stem’s customers—who pay nothing up-front—typically pay a monthly fee for the storage units and recover the cost through lower energy bills.

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