Toronto cleantech startup Peak Power has raised $47.2 million CAD ($35 million USD) as it looks to capitalize on increasing adoption of energy storage solutions in the United States (US).
Peak Power raised the round from a slate of investors in sustainable technology. The funding was led by a fund affiliated with Greenbacker Capital Management, with participation from existing investors such as Hatch, The Atmospheric Fund, BDC Capital, Sensata Technologies, and Osmington Inc.
Peak Power also plans to hire for “critical roles,” and continue to develop its software.
Founded in 2015, Peak Power provides energy management solutions for commercial real estate and industrial companies.
Peak Power claims its flagship software, Peak Synergy, can help users minimize operational costs, reduce emissions, and sell energy back to the grid.
Peak Power plans to expand south of the border as a new tax incentive is driving adoption for energy storage.
In 2022, US President Joe Biden signed the Inflation Reduction Act of 2022 into law, which is meant to fight inflation, as well as encourage carbon emissions reduction, domestic energy production, and manufacturing investment.
The legislation offers investment tax credit incentives, which was extended to “energy storage technology” later that year. This credit can alleviate the costs of installing, owning, and operating battery energy storage systems.
“Tailwinds in the US energy storage market have never been stronger,” said Derek Lim Soo, co-founder and CEO of Peak Power. “The demand for clean distributed energy resources is growing, government policies are removing barriers for investment, and technology is becoming more cost-effective.”
According to Peak Power, its platform can optimize energy use for three assets: battery energy storage systems, electric vehicles, as well as “grid-interactive buildings,” which are infrastructures that can effectively change their energy consumption to lower demand on the energy grid.
Peak Power claims Synergy is currently deployed in over 13 million square feet of real estate across North America. It operates in Ontario, New York, New England, Virginia, and California.
With this funding, Peak Power plans to further expand across the US, hire for “critical roles,” and continue to develop its software.
Peak Power said it also plans to increase its project deployment efforts using its previously announced $200 million financing agreement with Madison Energy Investments. It also raised a $12 million CAD financing round in 2021.
Featured image courtesy Peak Power