Powervault returns to Crowdcube with its award winning home energy storage product, which reduces electricity bills and helps customers during blackouts. The Government says that energy storage is a game-changing technology which could save the UK £8bn/year as part of a "smart power revolution". Powervault presents its cloud-connected smart grid energy storage system.
The Government's "smart power revolution" would transform the way the UK generates and consumes electricity, cut costs, increase energy security and help meet climate change targets. Lithium-ion Battery prices have fallen 30% in the last two years and are forecast to fall further. Powervault’s mission is to capitalise on this opportunity and become the leading UK-based supplier of home energy storage appliances.
Powervault is selling a cloud-connected home energy storage appliance, which our calculations estimate can lower electricity bills by up to 20%. The product stores low cost electricity from solar panels or the national grid, then releases this stored energy when household demand peaks.
Powervault is initially targeting 800,000 homes with solar PV panels through our established network of resellers. We've achieved 300% of our budget for the first half of the 2016 financial year, in active discussions with national solar operators and utilities and we've made our first overseas sale.
Powervault is well positioned to address a new "smart tariff" market forecast to emerge from 2017. Our technology platform supports deployment of new smart-grid services and we have launched our first product.
Progress since April 2015
•Won "Innovator of the year" and "Solar PV Innovation of the Year" at the BusinessGreen technology awards.
•Positioned Powervault as a UK market leader, generating high profile media coverage (Guardian, Sunday Times, FT, Telegraph, BBC Radio 5).
•Started commercial discussions with Nissan to incorporate second life electric vehicle batteries into future versions of our product. Our ambition is to launch the world's greenest and cheapest closed-loop lithium ion product later this year.
•Developed an improved lithium-ion battery version of our product incorporating cloud based time-of-use tariff management and reducing manufacture costs.
•Hired six new staff (including Technical Director, Commercial Director, Business Development Manager).
•Secured a commitment from a large utility to perform a trial of Powervault systems and are in early discussions with other utilities.
•Partnered with Open Energi to evaluate providing services to support the national grid.
The investment will be used to:
1.Position for scaling by signing deals with utilities, large partners and those with international reach
2.Reduce cost further by incorporating innovations like second life batteries
3.Increase value by implementing "smart grid" features such as time of use tariffs and "frequency response" revenues
Powervault has raised £900,000 to date. In this EIS approved round we wish to supplement follow-on investment by existing shareholders to accelerate our growth. Existing investor Future Matters is increasing its existing investment in Powervault in this round. Green Angel Syndicate is co-investing in this round alongside Crowdcube investors.
The Company intends to seek an exit from 2020 when the home energy storage market has developed significantly but where significant growth potential exists to justify a premium valuation.