Companies in the battery storage, smart grid and energy efficiency sectors raised a collective total of $2.8 billion in 2018, up a sharp 87 percent from 2017, according to Mercom Capital Group.

Venture capital (VC) investors plowed $850 million in 49 deals into battery storage companies last year, up 19 percent from $714 million in 30 deals in 2017, according to Mercom's 2018 Q4 and Annual Funding and M&A Report for Storage, Grid & Efficiency. Total corporate funding for the sector, including debt and public market financing, totaled $1.3 billion last year, up 46 percent year over-year.

Smart grid companies raised $530 million of VC funding in 29 deals for 2018, a 26 percent increase from $422 million from 45 deals in 2017. Total corporate funding amounted to 33 deals valued at $1.8 billion, up 50 percent from $1.2 billion across 50 deals in 2017, according to Mercom.

2018 VC funding for energy efficiency companies soared 290 percent — $1.5 billion across 23 deals — from $384 million across 38 deals in 2017. Including debt and public market financing, total corporate funding for energy efficiency companies exceeded $1.7 billion last year, plummeting 206 percent from $3.3 billion in 2017.

Funding for battery storage companies

VC investors plowed more into lithium ion-based battery technology companies — $236 million —in 2018 than they did companies involved with other types of battery chemistry. Energy storage systems companies raised $193 million.

Leading the way were QuantumScape, which raised $100 million, Stem, which raised $80 million and sonnen, which raised $71 million. Sila Nanotechnologies raised $70 million, while Ionic Materials raised $65 million, according to Mercom.

All told, 73 VC investors participated in 2018 as compared to 86 in 2017.

Elsewhere, battery storage companies raised $490 million in 11 deals in the debt and public markets. That compares to $177 million in 12 deals in 2017. Bloom Energy topped the list, raising $270 million in an IPO, the year's largest battery storage company public market financing, Mercom highlights.

In addition, $352 million was raised by three battery storage project funds that were publicly announced in 2018. That compares to $446 million in the same number of deals in 2017.

Eleven battery storage funding deals totaling $434 million were announced, as well.

Turing to battery storage mergers and acquisitions (M&A), Mercom registered 16 for 2018. Transaction amounts were disclosed for just three. That compares to three in 2017, just two of which disclosed transaction amounts.

Funding for smart grid companies

ChargePoint raised $240 million from VC investors in 2018, the largest amount across the sector, according to Mercom. SmartWires raised $55 million, Volta Charging $35 million, AutoGrid $31 million and Ample $31 million.

All in all, 69 investors participated in smart grid company funding last year. That compares to 88 in 2017, Mercom says. Energy Impact Partner, E.ON, Orstead, Shell Ventures and WindSail Capital Group were the leading investors.

Smart grid companies involved in smart charging of plug-in hybrid electric vehicles (PHEV) and EV-to-grid (EV2G) companies brought in the largest share of VC funding for the sector last year— $348 million in nine deals. Grid optimization companies followed, raising $59 million in two deals, according to Mercom's report.

Smart grid companies turned to debt and public markets to raise an additional $1.3 billion in announced deals in 2018. That compares to $774 million in 2017, a 67 percent jump. There were no smart grid IPOs announced last year.

There were 12 undisclosed smart gird M&A transactions, however. That compares to 27, seven disclosed, in 2017.

Funding for energy efficiency companies

A total of 72 investors participated in funding deals for energy efficiency companies in 2018 as compared to 51 in 2017. Energy Impact Partners was the most active.

View raised $1.1 billion, UrbanVolt raised $64 million and ecobee raised $61 million and $36 million in two investment rounds. Tado raised $50 million.

Energy efficiency companies raised just $277 million in three deals from debt and public markets as compared to $2.9 billion in 16 deals in 2017.

Three Property Assessed Clean Energy (PACE) deals brought in more than $694 million. That compares to $1.6 billion in seven in 2017.

Mercom tracked just seven energy efficiency M&A transaction in 2018. Lime Energy's acquisition by Willdan Group for $120 million was the only one with a disclosed value. There were 10 in 2017, according to Mercom.