An innovator in second-life battery storage technology, Connected Energy has partnered with Capitas Finance to accelerate the uptake of a new Battery Storage as a Service (BSaaS) model amongst public sector and industrial organisations as part of its decarbonisation plans.
Connected Energy is an engineering-led innovator in energy storage. Its award-winning technology enables electric vehicle (EV) batteries to have a second life in commercial scale energy storage systems. This radically changes the way intensive energy users can access the benefits of low-cost, on-site solutions – and adds a circularity benefit to the use of EV batteries.
Electric vehicle batteries provide around 10 years of on-board use before their reduced range makes the vehicle impractical. If the batteries are recycled at this point, around 40% of the value embedded in the batteries, and the associated environmental impact, is wasted.
Industry projections suggest that by 2030, around one million tonnes of electric vehicle batteries could be available for reuse, and by 2035 global requirements for stationary energy storage could be met by second life batteries. Indeed, there are many benefits including:
In giving batteries a second life, not only is Connected Energy pioneering the circular economy, but it is helping customers accelerate their pathway to becoming more energy efficient and helping them on their decarbonisation journey.
In order to accelerate the uptake of second-life battery energy storage systems, Connected Energy recognised the value of collaboration with a specialist energy financing partner to launch its innovative Battery Storage as a Service (BSaaS) business model.
It is well known that accessing finance can be a barrier when it comes to energy efficiency and decarbonisation projects, despite the attractive payback and strong return on investment. One of the key criteria Connected Energy had when seeking out a financing partner was that they must understand the energy sector in order to help them generate new business opportunities.
Having researched potential partners it was clear that Capitas Finance was a perfect match to help achieve its growth ambitions. Capitas Finance has a proven record for generating sales opportunities across Connected Energy’s target markets, combined with deep domain knowledge of the sector.
Since the start of the partnership 12 months ago, Connected Energy and Capitas have successfully launched the BSaaS model, with a particular focus on public sector bodies and those working across the water industry.
Because the model can be deemed ‘off balance sheet’, this allows Connected Energy to expand its service offering and differentiate itself from competitors whilst establishing longer-term recurring revenue relationships with its customers rather than ‘one-off’ sales transactions.
In managing their expenditure over a longer term, rather than needing a large capital expenditure upfront, Connected Energy’s customers can manage their capital budgets more effectively. The model, which includes full servicing, spare parts and a flexible market leading warranty for a minimum monthly fee over a ten-year period, also offers a very low risk as technology availability and capacity performance can be guaranteed.
Partnering with an energy finance specialist Capitas brings with it many other commercial advantages:
As a result, the partnership and new service model is already proving successful for Connected Energy, attracting interest from a number of commercial and industrial businesses.
Nigel Dent, Head of Sales at Connected Energy, says:
“We are delighted to be working with Capitas Finance to provide this game changing finance service model. Phil Murphy and the team at Capitas have provided a first-class service to date and we are very impressed with the BSaaS model that they have created for our second life battery storage offering. This service provides Connected Energy with another string to our bow when selling battery storage systems to customers who do not have a big upfront capital budget available.”
Phil Murphy, Associate Director of Capitas Finance, added:
“Connected Energy are innovators in their marketplace, just as Capitas is within the energy financing sector. Our shared drive towards innovation, centered around the new BSaaS model, has led to a close bond between the two companies. They value our hands-on, proactive approach and appreciate the work Capitas is doing to support their team and sales proposition.”