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
Ontario Teachers’ Pension
Holdings and Activate
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.