The push for clean energy continues to fuel innovation in battery technology, as storage plays a crucial role in stabilizing renewable power sources. Moonwatt, a Netherlands-based cleantech startup, is developing a battery storage system optimized for solar power plants, helping them manage variability and maximize energy output. The company has raised $8.3 million in seed funding to accelerate its efforts, with plans for a pilot installation in Europe next year and commercial deployments by 2027.
A Battery Solution Tailored for Solar
Founded in September last year, Moonwatt specializes in co-located energy storage for solar plants, designing dedicated battery enclosure hardware, inverter power electronics, and software integration. The system allows solar plants to store excess energy during peak sunlight hours and release it when demand is higher, increasing revenue potential and reducing operational costs. Target customers include non-residential solar plants generating at least a few hundred kilowatts.
Unlike conventional lithium-ion storage, Moonwatt’s solution uses sodium-ion battery technology, a cost-effective alternative with raw materials that are more abundant and easier to source. While sodium-ion batteries have lower energy density than lithium-ion, making them less suitable for mobile applications, their stationary nature makes them well-suited for renewable energy storage.
Financial Backing and Market Potential
Moonwatt’s $8.3 million seed round was co-led by Daphni and LEA Partners, with additional backing from Founders Future, AFI Ventures, Kima Ventures, and strategic business angels. The funding will support the company’s early-stage development, including its upcoming pilot installation in Europe.
Paul Bazin, Partner at Daphni, highlighted the need for dedicated energy storage in renewables, stating, “Renewable power growth has exceeded all expectations, but we’re approaching a tipping point where it won’t be able to scale further without better energy storage.”
Driving Efficiency and Returns
Moonwatt’s pitch to solar power plants is that its system can boost capacity factors up to 80% and double internal rates of return. Co-founder and Chief Commercial Officer Valentin Rota explained that photovoltaic assets in top-tier markets typically see IRRs between 8% and 12%, but with Moonwatt’s storage system, this figure could rise to around 20%.
The company’s founders, who previously worked on battery technology at Tesla and battery manufacturer Freyr (now Ti Energy), identified solar storage as a crucial but underdeveloped market. “Solar storage is the backbone of the future world power grid, but there is no product dedicated to it yet,” Rota said. “That’s what Moonwatt is about: making the first solar-dedicated battery storage product.”
A Shift Toward Solar-Optimized Storage
Moonwatt’s storage design uses a distributed architecture rather than a centralized system, making integration more efficient. By positioning storage closer to solar panels at peak output, the company aims to lower the cost of dispatchable electricity and reduce grid infrastructure expenses.
Solar energy continues to expand globally, with deployments in more than 120 countries per year. Rota sees this growth as an opportunity, noting that as more solar plants come online, the need for specialized storage solutions will become increasingly critical. By coupling solar generation and storage at the low-voltage level, Moonwatt aims to optimize grid usage and improve the overall economics of renewable energy.
The startup envisions a future where solar plants transition from passive energy producers to active market participants. “By adding storage behind the meter, plants can shift energy usage, making grid capacity more efficient,” Rota said. With the latest funding, Moonwatt is positioning itself to help solar plants unlock their full potential in the evolving energy landscape.
Featured image courtesy of Moonwatt
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