Peak Power, an energy storage software and services provider, announced the successful closing of $35 million in financing to ramp up its expansion into the US, hire for critical roles, and continue to develop its software capabilities.

The funding round was led by an affiliated fund of Greenbacker Capital Management, which provides growth capital and best-in-class guidance for growth-stage clean energy companies. Prior investors providing additional investment include Osmington, BDC Capital, Export Development Capital, Hatch, Sensata Technologies, and The Atmospheric Fund.

The Investment Tax Credit (ITC) provided for in the Inflation Reduction Act accelerate battery energy storage adoption in the U.S. The ITC reduces the cost of installing, owning, and operating battery energy storage systems, making them more attractive for investment.

“Battery storage is a linchpin technology for decarbonizing the electricity sector. This funding will allow us to help even more businesses reach their economic and environmental targets,” said Derek Lim Soo, Peak Power CEO and Co-Founder. “Tailwinds in the US energy storage market have never been stronger. The demand for clean distributed energy resources is growing, government policies are removing barriers for investment, and technology is becoming more cost-effective.”

Alexa Capital, a leading financial advisory firm exclusively focused on the energy transition, served as a financial advisor to Peak Power.

According to Mercom’s Q1 2023 Funding and M&A Report for Storage and Smart Grid, VC funding raised by Energy Storage companies in Q1 2023 came to $1.1 billion in 19 deals, an 8% decrease year-over-year (YoY) compared to $1.2 billion in 22 deals in Q1 2022. Quarter-over-quarter (QoQ) funding was 35% lower compared to $1.7 billion in 22 deals in Q4 2022.

Energy Dome, a provider of long-duration energy storage solutions, recently raised €40 million (~$44 million) in a Series B funding round led by Eni Next and Neva SGR. The investment will help Energy Dome scale up its CO2 Battery technology, which uses carbon dioxide to store renewable energy on the grid.