2018 has been a good year so far for battery storage. Not only is the U.S. residential storage market booming, but an extension of the Self Generation Incentive Program (SGIP) in California is paving the way for ongoing growth over the next five years.
But even before the SGIP extension passed, the dollars were flowing into energy storage. According to Mercom Capital’s 9M & Q3 2018 Funding and M&A report for Storage, Smart Grid and Efficiency, in the first nine months of 2018 funding increased in two key categories for battery storage.
According to the report, venture capital funding for battery storage increased 39% during the first nine months of 2018 to $469 million in 23 deals, while debt and public market financing grew 156% to $446 million.
By contrast the volume in project funding deals fell sharply, however Mercom Capital CEO Raj Prabhu says that this likely reflects the limited information about funding levels for battery projects more than anything else.
“Not everybody goes out and discloses information,” Prabhu told pv magazine.
The top five VC deals for battery storage in the first nine months of 2018 were all above $60 million each:
- $100 million raised by QuantumScape
- $80 million raised by Stem
- $71 million raised by sonnen
- $70 million raised by Sila Technologies
- $65 million raised by Ionic Materials
Battery storage is already showing market momentum, and this is only expected to increase when wholesale markets begin to open to the technology via FERC Order 841.