SDCL Energy Efficiency Income has signed an agreement to provide a convertible loan of up to $10m in On.Energy Storage LLC, a battery energy storage system (BESS) and microgrids solutions provider, headquartered in the US. The trust has also provided a conditional commitment to fund up to $100m in qualifying commercial & industrial energy storage as a service (ESaaS) projects to be developed and operated by On.Energy across North America.
On.Energy focuses on delivering long-term ESaaS projects to customers seeking sustainable power whilst reducing energy costs. Operation and maintenance is managed by On.Energy, with equipment undergoing remote 24/7 monitoring.
The use of batteries allows energy to be stored for when it is needed, overcoming the intermittent production obstacles of certain types of renewable energy and increasing resiliency while reducing reliance on the grid. A typical 1 MW / 2 MWh system deployed by On.Energy reduces an average of 12,850 kg of CO2eq per year from the atmosphere.
The convertible loan investment aligns with SDCL’s investment policy, within its allocation of 3% of gross asset value to developers, managers or operators of energy efficiency projects.
SEIT : SDCL Energy Efficiency backs US energy storage provider