UK start-up gears up to capture UK home energy storage market
London-based Powervault claims to have 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.
Powervault plans to sell 50,000 home energy storage systems by 2020, took just three and a-half 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.
Powervault is aiming to become the leading UK supplier of home energy storage solutions. The company’s 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. The solution is compatible with all solar PV systems, and requires no extra equipment or significant rewiring of the home.
Powervault’s ambition is to take on companies like electric car maker Tesla who earlier this year launched batteries for homes and businesses that charge from solar panels. Tesla’s innvovation has stimulated the energy storage market worldwide. Other multinational car makers are gearing up to address the home energy storage sector with Mercedes-Benz unveiling a product in recent weeks.
The European home energy market is hotting up with German companies Sonnenbatterie and IBC Solar offering solutions amongst others.
Powervault is looking to produce the most practical and affordable product for the UK market, balancing useful capacity against cost. The company is partnering with solar PV companies to sell systems between 2 kWh 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. The system is capable of lowering 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: “This 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 making sales 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.”
Powervault has received more than £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. The company’s first Crowdcube campaign in 2014 raised £150,000 of seed funding in eight hours.
The company plans to use the 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 is targeting 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.
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