Dive Brief:
- ConnectDER, known for its home adapters for electric vehicles and solar power, announced on Tuesday that it has raised $35 million in a funding round led by Decarbonization Partners, a collaboration between BlackRock and the Singaporean investment firm Temasek.
- Decarbonization Partners was one of two new investors in this round, alongside MassMutual Ventures, with six other investors also participating.
- This funding will enable ConnectDER to boost its growth as it prepares to launch a new product called the “IslandDER” adapter, which allows homeowners to maintain energy backup and resiliency by disconnecting and reconnecting to the utility grid.
Dive Insight:
According to ConnectDER, this recent funding will help the company expand its market presence and innovate new products as it introduces the IslandDER. This new meter-socket adapter is designed for easy integration with the utility grid, allowing homeowners to utilize solar energy, battery storage, electric vehicles, and other forms of distributed energy, regardless of their connection to the grid.
CEO Ivo Steklac highlighted that the funding will allow the company to enhance its offerings in current markets, scale up manufacturing, and bring IslandDER to customers. “Our forthcoming IslandDER enables homes to disconnect and reconnect from the grid, allowing customers to harness stored energy from solar plus battery systems or EVs, providing innovative backup power options at a competitive price,” he stated.
Currently, about 60 million homes in the U.S. lack the necessary infrastructure for solar, EV charging, or other distributed energy resources. ConnectDER claims that its products are approximately 10% or less than the typical costs associated with upgrading a home’s electrical service. This affordability is expected to remove significant hurdles for potential adopters.
In addition to the investments from Decarbonization Partners and MassMutual, ConnectDER has garnered support from LG Corporation’s technology investment division, which previously invested in the company. Other returning investors in this funding round include Clean Energy Ventures, Energy Innovation Capital, Avista Development, Evergy Ventures, and Zoma Capital.
Meghan Sharp, Global Head and Chief Investment Officer at Decarbonization Partners, praised ConnectDER, saying, “The team has developed an elegant solution that addresses a significant challenge in adoption, promoting affordable home electrification in North America.”
After surpassing $1 billion in investments in October 2023, the BlackRock and Temasek joint venture recently closed a $1.4 billion round for its first late-stage private equity fund.