Powervault Raises £700,000 To Take On Tesla In UK Home Energy Storage Market
British technology start-up Powervault has raised £700,000 on investment crowdfunding platform Crowdcube to take on Tesla and become the leading UK player in the rapidly emerging home energy storage market, it announced today.
Powervault, which plans to sell 50,000 home energy storage systems by 2020, took just three and ahalf days to reach its £700,000 target in its second funding round, including £200,000 from the London Co-Investment Fund and £100,000 from Future matters.
The London-based company has developed the UK's first simple and affordable home energy storage system, enabling homeowners to store electricity they generate from solar panels and cut their electricity bills.
Electric car maker Tesla recently made headlines around the world by unveiling batteries for homes and businesses that charge from solar panels, accelerating interest in the energy storage market. It received reservations worth $800 million in the first week. Last week Mercedes-Benz unveiled its own product, further evidence of the market opportunity in battery storage linked with renewables.
Powervault aims to become the leading UK supplier of home energy storage solutions. Its patent pending product is a complete system in a box, including batteries, charger, inverter and control unit, which can be installed by an electrician in an hour. It is compatible with all solar PV systems, and requires no extra equipment or significant rewiring of the home.
By contrast, many other companies including Tesla are only selling a battery-based partial solution rather than complete home storage systems. They require spending on additional components, are more complicated to install, and are not compatible with all solar systems.
Powervault's mission is to produce the most practical and affordable product for the UK market, balancing useful capacity against cost. It is partnering with solar PV companies to sell systems between 2kWh and 4 kWh with an installed price of £2,000 to £2,800.
The Powervault system stores surplus electricity during the day and slowly releases it in the evening, allowing homeowners to keep their own power for when they need it, rather than exporting it to utilities and paying more to get it back. It can lower household energy bills by up to 15% and saves 0.3 tonnes of carbon a year from conventional generation.
Powervault Managing Director Joe Warren said: "Ths is a state-of-the-art, British designed product which will cut homeowners' electricity bills, increase their energy security and help the UK cut carbon emissions. We're already makingsales and we aim to be a household name in five years, making a significant impact with products in 50,000 homes around the country.
"Tesla is raising awareness of home energy storage, exciting potential customers and helping to create a market. Their entry into the market demonstrates the scale of the business opportunity, with battery costs falling and up to two million UK homes forecast to have solar panels by 2020. The Powervault system has been designed specifically to meet the needs of British homeowners and is available today."
Greg Barker, former Minister for Energy and Climate Change, said: "Home energy storage can play a key role in building a low-carbon economy, saving money for homeowners and helping the UK to cut its carbon emissions. Powervault is a British company with a British designed product and it's great to see them ready to seize the opportunities of this rapidly growing market."
Powervault has won several awards and received over £285,000 in grant and prize funding from organisations including Royal Bank of Scotland, Nesta, InnovateUK and ClimateKIC. Crowdfunding campaigns have raised a total £900,000 from consumers, angel investors and venture capitalists. Its first Crowdcube campaign in 2014 raised £150,000 of seed funding in eight hours "“ a world record.
The company has an aggressive plan for growth. It will use its new funding to implement a redesign which will cut its manufacturing costs by 20%, to develop a lithium-ion version of the product, and to establish new sales channels.
Powervault expects to have sold 10,000 home energy storage systems in three years and 50,000 within five years, by which time it expects them to retail for less than £1000.
Maggie Rodriguez-Piza, CEO of Funding London, said: "We are delighted to support Powervault as the first clean tech investment by the London Co-investment Fund. Powervault's energy storage solutions are a strong example of technology emanating from London's vibrant clean tech sector and highlight the city's credentials in environmental innovation."
Luke Lang, co-founder of Crowdcube, said: "It's fantastic that our investor community has been able to invest alongside the London Co-Investment Fund in an innovative tech business like Powervault. It was one of the fastest funding businesses on Crowdcube, demonstrating the crowd's appetite to invest in the emerging home energy storage market."
Vitaly Lazorin, founder and CEO of Future Matters, said: "Our focus is to source innovative technologies that contribute to and support our environment. In Powervault, we have found a unique constellation of technology that is developed by people who are genuinely committed to making it part of our everyday life. This has the added benefit of having a positive impact on everyone's future."
