Mercom: Energy storage VC funding cools as project funding heats up in Q3

Facebook
Twitter
LinkedIn
Reddit
Email

The participation of venture capital (VC) investors seems to have cooled, while project funding has conversely seen a sharp rise, in the latest quarterly report into funding and mergers and acquisitions from Mercom Capital.  

In the third quarter (Q3) 2016 report on the smart grid, battery storage and energy efficiency sectors, VC funding for battery storage dropped to just US$30 million across nine deals, compared to US$125 million across 10 deals in the previous quarter. Q3 last year also saw funding drop from the preceding quarter, though not as sharply. In 2015, Q2 and Q3 stood at US$126 million across 13 deals and US$96 million across nine deals, respectively.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Mercom found that six battery sub-technologies shared the VC funds including energy storage management software and supercapacitors, as well as lithium battery makers, whole energy storage system makers, thermal energy storage and flow batteries, the latter of which appear to be a consistent target for VC funding announcements in the past couple of years the report has been produced.

For the full version of this story, visit Energy-Storage.News.

Read Next

October 16, 2026
Concord New Energy (CNE) has closed US$400 million in financing for its US clean energy and digital infrastructure portfolio.
October 15, 2026
Australia's solar financial investment decisions (FIDs) have hit a record 3.5GW in 2026, with energy minister Chris Bowen saying renewable energy investment "has already broken the annual record".
October 15, 2026
Aligned Climate Capital and Nexamp have secured finance for their respective community solar portfolios in the US.
October 15, 2026
The Australian Renewable Energy Agency (ARENA) has launched a third round of its Solar Sunshot programme, offering up to AU$250 million (US$175 million) to companies that manufacture or demonstrate equipment for building large-scale solar PV power plants in Australia.
October 14, 2026
The prices of European renewable energy power purchase agreements (PPAs) rose by 5.0% in September, according to figures from Pexapark.
October 13, 2026
Heliene has announced the sale of Section 45X PTCs, facilitated by U.S. Bank's community development and infrastructure finance subsidiary.

Upcoming Events

Solar Media Events, Upcoming Webinars
October 21, 2026
2pm AEDT
Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland
Solar Media Events
February 2, 2027
London, UK
Solar Media Events
April 20, 2027
Istanbul, Türkiye