Electriq Power secures financing to support Sustainable Community Networks in California

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Electriq Power, a provider of intelligent energy storage and management for homes and small businesses, has entered into a multi-year agreement with a U.S.-based clean-energy company that designs, proposes and finances solar-plus-storage projects nationwide.

The financing, estimated to be greater than $300 million over 30 months, reportedly will support the implementation of Sustainable Community Networks (SCNs) throughout California.

The way the SCNs work is basically that Electriq Power offers turnkey energy solutions that include solar panels, batteries, software, project development, financing, installation and grid services, all with zero upfront costs. These networks are up and running in Santa Barbara and Parlier, California, and are aimed at bringing energy independence to low-income residents. In these models, Electriq or another financial party own the battery, and they get the federal tax credit. The benefit to the resident is that they can sign up to receive the power from the solar installation through a power purchase agreement, at rates lower than what the utility would charge. The benefit to Electriq, or other third-party, is that they can use the battery at specified times to send power to the grid.

Electriq Power sees its SCNs as a hedge against rising utility rates and power, especially in post-NEM 3.0 California. In December 2022, the California Public Utilities Commission (CPUC) decided to pass NEM 3.0, cutting payments for exported solar energy by about 75%, adopting a utility-developed avoided cost calculator to set rates. The decision was justified based on an analysis that suggested non-rooftop solar customers were subsidizing their neighbors that decided to invest in the clean energy transition. In the post-NEM 3.0 world, potential solar shoppers are expecting a lower return on investment, thus turning some away from a clean energy future. Electriq Power sees the SCN model as helping low-income California residents embrace clean energy, with no up-front cost.

Electriq Power is the provider of the lithium ferro-phosphate PowerPod 2 battery, which the company says can provide backup power during blackouts as well as smart time-of-use charging and discharging cycles that insulate homeowners from expensive peak demand charges. Home storage also alleviates pressure on the grid, making it more reliable and prices more stable for the surrounding community.

By joining forces with the clean energy provider, Frank Magnotti, CEO of Electriq Power said that by bringing their finance and technology, Electriq hopes to launch additional SCNs across California.

“Our provider’s expertise in the energy sector and their software platform will enable us to jointly provide potential grid services and expand access to more communities. This agreement is a win for cities and municipalities throughout California and, most importantly, for their residents,” said Magnotti.

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