Stem, Inc. and CleanCapital Announce MOU for Financing Partnership to Fund Mid-Market Energy Storage Projects

Partnership to provide funding for development partners and grant Stem right of first refusal as preferred energy storage provider for new and retrofit solar PV opportunities

Stem, Inc. (“Stem” or “the Company”) (NYSE: STEM), a global leader in artificial intelligence (AI)-driven clean energy storage services, today announced it has entered into a memorandum of understanding (MOU) with respect to a new financing partnership with CleanCapital, a leading clean energy investment platform and one of the largest owner-operators of distributed solar assets in the United States. Under the terms of the MOU, Stem and CleanCapital will work to develop a framework whereby Stem will provide its expertise and support for smart energy storage services—including storage hardware and Athena® smart energy software—to developers as CleanCapital’s preferred energy storage provider with right of first refusal in favor of Stem for all of CleanCapital’s storage projects that the parties originate together.

In April 2021, CleanCapital announced a $300 million corporate investment commitment from Manulife Investment Management to expand its portfolio of clean energy assets. With Stem as its new partner, CleanCapital expects to actively pursue investments in standalone energy storage, solar retrofits to add storage, and new-build solar plus storage projects.

The proposed partnership will focus on mid-market commercial energy storage and small utility front-of-meter (FTM) projects up to 30 megawatts (MW) across the United States. The partners will target commercial & industrial (C&I) end users and electric cooperatives—including deployments that qualify for the Solar Massachusetts Renewable Target (SMART) Program, a state initiative that promotes cost-effective solar development with customer-facing and grid service benefits.

“Partnering with CleanCapital, which has the financial backing of one of the world’s largest institutional investors, means we can help more renewable energy companies contribute to the clean energy revolution,” said Alan Russo, Chief Revenue Officer at Stem. “Adding this committed source of financing to Stem’s expertise and Athena® smart energy software enables our team to develop the highest quality assets for long term owners. We look forward to creating additional value for our energy partners as CleanCapital augments and grows its storage portfolio.”

“Energy storage represents a tremendous opportunity as the world transitions to clean energy. We are thrilled to pursue this market by partnering with Stem, a clear leader in AI-driven energy storage,” said Jon Powers, Co-founder & President of CleanCapital. “We look forward to working closely with Stem to help finance the ongoing development of energy storage across the country.”

About Stem, Inc.

Stem, Inc. provides solutions that address the challenges of today’s dynamic energy market. By combining advanced energy storage solutions with Athena®, a world-class AI-powered analytics platform, Stem enables customers and partners to optimize energy use by automatically switching between battery power, onsite generation and grid power. Stem’s solutions help enterprise customers benefit from a clean, adaptive energy infrastructure and achieve a wide variety of goals, including expense reduction, resilience, sustainability, environmental and corporate responsibility and innovation. Stem also offers full support for solar partners interested in adding storage to standalone, community or commercial solar projects – both behind and in front of the meter. For more information, visit www.stem.com.

About CleanCapital

CleanCapital is an industry-leading clean energy investment platform. Since 2015, CleanCapital has worked to accelerate investment in distributed solar and storage assets to address the urgent threat of climate change. Its leading-edge technology platform facilitates the evaluation and acquisition of clean energy assets with speed and certainty. CleanCapital’s cumulative acquisitions, now totaling more than $840 million, include 230 MW of solar assets comprising 160 projects in 18 states. More information about CleanCapital can be found at cleancapital.com.

Cautionary Statement regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the federal securities laws — that is, statements about the future, not about past events. Such statements often contain words such as “expect,” “may,” “believe,” “plan,” “estimate,” “intend,” “anticipate,” “should,” “could,” “will,” “see,” “likely,” and similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as projected demand our AI-driven clean energy storage services; the likelihood that the parties will enter into a definitive agreement; forecasts or expectations regarding the development of, or anticipated benefits of, the partnership; and other forecasts or expectations regarding the partnership, the energy transition and global climate change. These statements are subject to risks and uncertainties, including, but not limited to, the risk that the parties will not enter into a definitive agreement; the inability to recognize intended benefits from the partnership; legislative and regulatory initiatives addressing environmental concerns, including initiatives addressing the impact of global climate change; the extent of customer demand for AI-driven clean energy storage services; risks relating to the development and performance of Stem’s energy storage systems and software-enabled services; other economic, business and competitive factors; and other risks and uncertainties set forth in the section entitled “Risk Factors” in the definitive proxy statement relating to the business combination filed by Star Peak on March 30, 2021, Stem’s most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the SEC, and other documents Stem files or furnishes with the SEC in the future. If one or more of these or other risks or uncertainties materialize (or the consequences of such a development changes), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those reflected in our forward-looking statements. The forward-looking statements speak only as of the date of this press release, and the parties disclaim any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

Source: Stem, Inc.

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