MILLBRAE, Calif., Oct. 24, 2013 /PRNewswire/ -- Stem Inc., a leader in advanced energy storage systems, today announced it has secured funding to accelerate the adoption of its solution. With this project finance fund, commercial and industrial customers can deploy a Stem energy system at no upfront cost, and take advantage of immediate energy bill savings. The fund is backed by up to $5 million in investment from Clean Feet Investors I, LLC (CFI).
The new financing model, which Stem developed in collaboration with CFI, is designed to open access to a wider pool of customers by removing barriers to adoption, enabling up to 15 MW of energy storage to be deployed. With this financing capability, Stem hopes to follow the dramatic growth trajectory pioneered by the third party ownership model in the solar industry. Stem and CFI plan other innovative financing offers for customers including performance-based and shared savings financing solutions with the capital from this financing.
"In addition to breakthroughs in technology, Stem is focused on driving business model innovation," said Prakesh Patel, Stem's vice president of capital markets and strategy. "By working closely with CFI, I believe we have created a unique offering to help accelerate customer adoption of Stem systems. This transaction paves the way for Stem to become one of the first efficiency technologies to achieve bankability."
"Deployment capital is essential for Stem to get their technology in the hands of their customers – many of whom prefer a 'pay as you save' offering," added Jigar Shah, a principal at Clean Feet, and founder of the largest solar services company, SunEdison.
"We believe that Stem's product-focused business model, which monetizes savings from long-term agreements with its customers, makes it uniquely scalable and financeable, and thus very attractive to investors in our Fund," says Clean Feet Investors Manager Bernard Zahren.
Stem, a leading provider of energy optimization services, combines big data, predictive analytics and energy storage to reduce electricity costs for businesses. The company's solution requires no compromises on building occupant comfort and offers unparalleled energy insights, allowing a comprehensive view into past, present and future energy use. As demands on the grid continue to increase, Stem's system enables good energy citizenship and unlocks the potential for expanded renewable energy integration. Headquartered in Millbrae, California, Stem is funded by leading investor Angeleno Group.
About Clean Feet
Clean Feet engages in socially responsible investments in small to medium-sized renewable energy and energy conserving projects. By employing effective investment structures for sophisticated investors, CFI is helping to fill the current void in "non-dilutive" capital for an industry segment that is both very attractive and critical for an effective overall energy policy. The CFI Team is comprised of leaders and innovators in the alternative energy sector who have decades of experience in entrepreneurial management, investment syndications, and renewable energy.
Clean Feet's lead investor, Jigar Shah, author of Creating Climate Wealth, is known for his work in renewable financing, and as the founder of SunEdison, the first solar energy provider to popularize the solar Power Purchase Agreement (PPA).
SOURCE Stem Inc.