Stem is the leading behind-the-meter energy storage developer in the United States. Their solutions combine software and storage to create a powerful platform that reduces peak demand charges, displays critical use analytics to the host, and provides ancillary services to the grid. The system helps customers better understand and forecast their energy costs by communicating real-time energy use data and intelligently stores and deploys energy. Projects are bought by an SPV formed by Stem and Generate Capital. Hosts range from private companies (i.e. a local country club) to large scale commercial enterprises (i.e. nation-wide hotel chains).
- $10M investment
- 15% IRR unlevered
- 4-year payback period
- $30M contracted pipeline
STEM LCR
This transaction expands upon Generate’s existing STEM relationship by securing our right to fund up to 85 MW/340 MWh (4-hour discharge) of behind-the-meter energy storage projects in Southern California. The program helps Southern California Edison (SCE) meet its obligations under Local Capacity Resource (LCR) programs, a major state-sponsored energy efficiency initiative. The energy storage market in the SCE territory is increasingly attractive as a result of reliability concerns stemming from the October 2015 natural gas leak at the Aliso Canyon storage facility. Host customers sign 10-year fixed Storage Services contracts under a Master Agreement.
- $25M total investment
- 13% levered after tax IRR
- 7-year payback
