sonnen GmbH (proprietary name and abbreviated form: sonnen) is a company in the

energy industry The energy industry is the totality of all of the industries involved in the production and sale of energy, including fuel extraction, manufacturing, refining and distribution. Modern society consumes large amounts of fuel, and the energy indu ...

headquartered in Wildpoldsried in the district of

Oberallgäu Oberallgäu is a ''Landkreis'' (district) in Swabia, Bavaria, Germany. It is bounded by (from the north and clockwise) the districts of Unterallgäu and Ostallgäu, the Austrian states Tyrol and Vorarlberg, the district of Lindau, and the state of ...

, Germany. It produces

home energy storage Home energy storage devices store electricity locally, for later consumption. Electrochemical energy storage products, also known as "Battery Energy Storage System" (or "BESS" for short), at their heart are rechargeable batteries, typically based on ...

systems for private households and

small businesses Small businesses are types of corporations, partnerships, or sole proprietorships which have fewer employees and/or less annual revenue than a regular-sized business or corporation. Businesses are defined as "small" in terms of being able to ap ...

. The company is considered the market leader in Germany and additional international markets. Moreover, it is the center of a community for supplying power from

renewable energies Renewable energy is energy that is collected from renewable resources that are naturally replenished on a Orders of magnitude (time), human timescale. It includes sources such as Solar power, sunlight, wind power, wind, the movement of Hydropo ...

Company development

Company

Christoph Ostermann and Torsten Stiefenhofer founded the company in 2010 as a GmbH (German limited liability company). The legal name of the company at that time was ''PROSOL Invest Deutschland GmbH''. In December 2013, the shareholders' meeting decided to change the company name to ''sonnenBatterie GmbH'', in order to adopt the name of its product range and to support the goal of internationalization. Since November 2015, the company has operated as ''sonnen,'' under which all the company's individual activities are organized.

Business development

From 2008 to 2010 above all founder Torsten Stiefenhofer developed a home battery marketed from 2011 under the name of ''sonnenBatterie''. As a

solar battery A rechargeable battery, storage battery, or secondary cell (formally a type of energy accumulator), is a type of electrical battery which can be charged, discharged into a load, and recharged many times, as opposed to a disposable or prim ...

, the product is geared especially to independent homeowners with a

photovoltaic system A photovoltaic system, also PV system or solar power system, is an electric power system designed to supply usable solar power by means of photovoltaics. It consists of an arrangement of several components, including solar panels to absorb and co ...

. As of mid-2016, eight generations of this power storage system have been developed and marketed. Germany is the main sales market for the devices. The company also distributes the home batteries in

Austria Austria, , bar, Östareich officially the Republic of Austria, is a country in the southern part of Central Europe, lying in the Eastern Alps. It is a federation of nine states, one of which is the capital, Vienna, the most populous ...

Switzerland ). Swiss law does not designate a ''capital'' as such, but the federal parliament and government are installed in Bern, while other federal institutions, such as the federal courts, are in other cities (Bellinzona, Lausanne, Luzern, Neuchâtel ...

, United Kingdom, Ireland,

Slovakia Slovakia (; sk, Slovensko ), officially the Slovak Republic ( sk, Slovenská republika, links=no ), is a landlocked country in Central Europe. It is bordered by Poland to the north, Ukraine to the east, Hungary to the south, Austria to the s ...

Czech Republic The Czech Republic, or simply Czechia, is a landlocked country in Central Europe. Historically known as Bohemia, it is bordered by Austria to the south, Germany to the west, Poland to the northeast, and Slovakia to the southeast. The ...

, Italy,

Netherlands ) , anthem = ( en, "William of Nassau") , image_map = , map_caption = , subdivision_type = Sovereign state , subdivision_name = Kingdom of the Netherlands , established_title = Before independence , established_date = Spanish Netherl ...

Sweden Sweden, formally the Kingdom of Sweden,The United Nations Group of Experts on Geographical Names states that the country's formal name is the Kingdom of SwedenUNGEGN World Geographical Names, Sweden./ref> is a Nordic country located on ...

Norway Norway, officially the Kingdom of Norway, is a Nordic country in Northern Europe, the mainland territory of which comprises the western and northernmost portion of the Scandinavian Peninsula. The remote Arctic island of Jan Mayen and t ...

, the United States and Australia (current as of: October 2016). Along with the renaming of the company to ''Sonnen GmbH'', the company announced in November 2015 that starting in 2016, it would establish its own power community, whose members can trade power among themselves. Andreas Menn: ''Brüder, zur Sonne, zur Freiheit''. In: ''WirtschaftsWoche'', November 27, 2015. Since September 2016, owners of a ''sonnenBatterie'', who are a member of this power community, can obtain electricity at a

flat rate A flat fee, also referred to as a flat rate or a linear rate refers to a pricing structure that charges a single fixed fee for a service, regardless of usage. Less commonly, the term may refer to a rate that does not vary with usage or time of us ...

. At the beginning of May 2017,

TenneT TenneT is a transmission system operator in the Netherlands and in a large part of Germany. ''TenneT B.V.'' is the national electricity transmission system operator of the Netherlands, headquartered in Arnhem. Controlled and owned by the Dutch g ...

and ''sonnen'' announced their plans to implement decentralized photovoltaic domestic storage batteries using

blockchain A blockchain is a type of distributed ledger technology (DLT) that consists of growing lists of records, called ''blocks'', that are securely linked together using cryptography. Each block contains a cryptographic hash of the previous block, a ...

technology to help stabilize the

power grid An electrical grid is an interconnected network for electricity delivery from producers to consumers. Electrical grids vary in size and can cover whole countries or continents. It consists of:Kaplan, S. M. (2009). Smart Grid. Electrical Power ...

and improve the integration of renewable energies. This offers a new source of income to ''sonnen'' customers who take part in the system. Furthermore, the planned blockchain

pilot project A pilot study, pilot project, pilot test, or pilot experiment is a small-scale preliminary study conducted to evaluate feasibility, duration, cost, adverse events, and improve upon the study design prior to performance of a full-scale research pro ...

is meant to improve and simplify the networking of storage batteries, photovoltaic systems and power grids, as well as make them more efficient. From an economic perspective, this technology and sonnen’s battery pool (''sonnenCommunity'') could reduce the redispatching costs for stabilizing the power grid.

Business fields

Power storage

Like other home storage systems, the ''sonnenBatterie'' from ''sonnen'' is also designed to increase the rate of own consumption of self-produced energy. Usually, a level of self-consumption of 30 to 55 percent can be reached with a photovoltaic system, when using smart-home functions. With a storage system, this rate is around 60 to 80 percent, as the self-produced electricity can be stored until it is consumed within the household. There is less need to source external electricity, especially mornings or evenings. Since its market launch, the company has designed the ''sonnenBatterie'' as a fully integrated system. In addition to the battery modules, it has an integrated

power inverter A power inverter, inverter or invertor is a power electronic device or circuitry that changes direct current (DC) to alternating current (AC). The resulting AC frequency obtained depends on the particular device employed. Inverters do the opp ...

, a unit for power management, along with electronic meters for power consumption in the building, for photovoltaic power generation and for feeding power into the

grid Grid, The Grid, or GRID may refer to: Common usage * Cattle grid or stock grid, a type of obstacle is used to prevent livestock from crossing the road * Grid reference, used to define a location on a map Arts, entertainment, and media * News g ...

or power-sharing in connection with the ''sonnenCommunity''. The power management system evaluates the user's consumption data and takes weather statistics into account, in order to determine the optimal time intervals for charging and discharging the storage system. Moreover, the ''sonnenBatterie'' can be combined with

heat pump A heat pump is a device that can heat a building (or part of a building) by transferring thermal energy from the outside using a refrigeration cycle. Many heat pumps can also operate in the opposite direction, cooling the building by removing h ...

small wind turbine Small wind turbines, also known as micro wind turbines, are used for microgeneration of electricity, as opposed to large commercial wind turbines, such as those found in wind farms. Small wind turbines often have passive yaw systems as opposed ...

s or combined heat and power plants.Heiko Schwarzburger: Endkunden virtuell vernetzt. In: ''Photovoltaik'', 12/2015, p. 72–74, here p. 73. The storage elements deployed are lithium iron phosphate batteries.

Sony , commonly stylized as SONY, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan. As a major technology company, it operates as one of the world's largest manufacturers of consumer and professional ...

is the main supplier of these components.''Auf dem Weg zur dezentralen Energieversorgung''. In: ''Straubinger Tagblatt/Landshuter Zeitung'', June 21, 2016. The various models of the system differ above all in their rated capacity, expressed in

kilowatt hours A kilowatt-hour (unit symbol: kW⋅h or kW h; commonly written as kWh) is a unit of energy: one kilowatt of power for one hour. In terms of SI derived units with special names, it equals 3.6 megajoules (MJ). Kilowatt-hours are a common bil ...

. In Germany, ''Sonnen'' was one of the first suppliers of lithium ion batteries for stationary use in homes and is considered market leader in Germany and globally. Products are not distributed via wholesale trade but through selected specialty dealers. From 2011 to mid-October 2016, 15,000 units were sold. Most went to

homeowners Home insurance, also commonly called homeowner's insurance (often abbreviated in the US real estate industry as HOI), is a type of property insurance that covers a private residence. It is an insurance policy that combines various personal insura ...

, along with farmers and small businesses.

Community

Since the first quarter of the year 2016, the company has organized the ''sonnenCommunity''. It involves a power producer community of photovoltaic system operators (homeowners and small business owners), who share surplus power with one another. In order to fill any power gaps in times when there is less sunlight, biogas systems are also included. Operators of small wind generators can also supply the community with power. The community combines three elements: the use of decentralized power generation, modern battery storage technology and digital networking of the participants. The concept is geared towards ''sonnen'' customers. The company grants prospective members a discount on the ''sonnenBatterie'' if they join the community. All members source power from the community at prices lower than from the grid. Moreover, ''sonnen'' handles the sale of surplus community power for them. By building up and expanding the community, the company hopes to boost sales of its ''sonnenBatterie''. Besides, each community member pays a monthly fee to ''sonnen''. The company in return handles the metering infrastructure and the software. The number of members at the beginning of October 2016 was around 3,000 households. In May 2016, the company began building up the community in Austria. The launch of the Swiss customer platform is announced for the 3rd quarter of 2016. Since September 2016, owners of a ''sonnenBatterie'' who are members of the ''sonnenCommunity'' can obtain electricity at a flat rate.

Shareholders

In addition to the founders, several financial investors have equity stakes in the company (current as of: October 2016): * In January 2013, ''eCAPITAL entrepreneurial Partners AG'', acquired a 30 percent share in the company for EUR 3 million. * The investment by ''Chrysalix SET Management B.V. (SET Ventures)'' and ''Munich Venture Partners'' was made at the end of 2014 as part of a capital increase of EUR 7.5 million, in which ''eCAPITAL'' also participated. * In mid-2015, ''Inven Capital, investiční fond, a.s.'', a subsidiary of the Czech energy firm ČEZ, invested in the

Allgäu The Allgäu (Standard German: , also Allgovia) is a region in Swabia in southern Germany. It covers the south of Bavarian Swabia, southeastern Baden-Württemberg, and parts of Austria. The region stretches from the pre-alpine lands up to the A ...

-based company as part of an additional capital increase. The investment involved a high single-digit sum in the millions. * In June 2016, sonnen enlisted GE Ventures, the

venture capital Venture capital (often abbreviated as VC) is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which ha ...

subsidiary of

General Electric General Electric Company (GE) is an American multinational conglomerate founded in 1892, and incorporated in New York state and headquartered in Boston. The company operated in sectors including healthcare, aviation, power, renewable energ ...

, as an additional investor. * In October 2016, the company closed another

funding round A securities offering (or funding round or investment round) is a discrete round of investment, by which a business or other enterprise raises money to fund operations, expansion, a capital project, an acquisition, or some other business purpose. ...

, resulting in EUR 76 million. All previous investors were involved. The Chinese corporate group

Envision Energy Envision Energy () is a Chinese multinational corporation headquartered in Shanghai that provides wind turbines and energy management software. History Envision was founded by Lei Zhang in 2007 in Jiangyin, Jiangsu in the east region of China ...

and Thomas Pütter, formerly CEO and ex-chairman of Allianz Capital Partners, were added as new investors. *In February 2019, it was announced that

Royal Dutch Shell Shell plc is a British multinational oil and gas company headquartered in London, England. Shell is a public limited company with a primary listing on the London Stock Exchange (LSE) and secondary listings on Euronext Amsterdam and the New Yo ...

would acquire 100% of the company for an undisclosed amount.

Management and human resources

Up until the end of 2014, the founders managed the company. At the beginning of 2015, there were changes in the management team. Hermann Schweizer replaced Torsten Stiefenhofer. The latter has since assumed the duties of

Chief Innovation Officer A Chief Innovation Officer (CINO) or Chief Technology Innovation Officer (CTIO) is a person in a company who is primarily responsible for managing the process of innovation and change management in an organization, as well as being in some cases th ...

. At the same time, the management team was supplemented by Oliver Koch, who had previously converted individual production of the battery systems over to

series production Mass production, also known as flow production or continuous production, is the production of substantial amounts of standardized products in a constant flow, including and especially on assembly lines. Together with job production and batch ...

. Starting in October 2015, Philipp Schröder switched from

Tesla Motors Tesla, Inc. ( or ) is an American multinational automotive and clean energy company headquartered in Austin, Texas. Tesla designs and manufactures electric vehicles (electric cars and electric truck, trucks), battery energy storage from ...

back to the then ''sonnenBatterie GmbH'' and is responsible as a member of management for Sales and Marketing. Within a few months, six additional ''Tesla'' managers followed him. Since the company's founding up to the summer of 2016, the number of employees has increased 20-fold. In June 2016 it was roughly 200, of whom 140 were employed in Wildpoldsried. In September 2016, the number of employees was 250 in total. At the beginning of 2017, some 300 employees worked for the company.

Locations

Up to the end of 2015, the company manufactured its battery storage systems exclusively in Wildpoldsried. Here production occurred for marketing under the company's own name and also as a white-label manufacturer for companies such as

SolarWorld SolarWorld is a German company dedicated to the manufacture and marketing photovoltaic products worldwide by integrating all components of the solar value chain, from feedstock (polysilicon) to module production, from trade with solar panels to ...

and

RWE RWE AG is a German multinational energy company headquartered in Essen. It generates and trades electricity in Asia-Pacific, Europe and the United States. The company is Europe's most climate threatening Company, the world's number two in offsh ...

. In 2015, the company established a production facility in

San Jose, California San Jose, officially San José (; ; ), is a major city in the U.S. state of California that is the cultural, financial, and political center of Silicon Valley and largest city in Northern California by both population and area. With a 2020 popul ...

. Here the company has been producing for the US market since the end of 2015. In June 2015, the company set up a location in

Atlanta Atlanta ( ) is the capital and most populous city of the U.S. state of Georgia. It is the seat of Fulton County, the most populous county in Georgia, but its territory falls in both Fulton and DeKalb counties. With a population of 498,715 ...

(

Georgia Georgia most commonly refers to: * Georgia (country), a country in the Caucasus region of Eurasia * Georgia (U.S. state), a state in the Southeast United States Georgia may also refer to: Places Historical states and entities * Related to the ...

) for

research and development Research and development (R&D or R+D), known in Europe as research and technological development (RTD), is the set of innovative activities undertaken by corporations or governments in developing new services or products, and improving existi ...

, in order to adapt its own products to the conditions in the United States market.

Awards

The company has received several prizes and awards: * In 2017, it received the ''Zayed Future Energy Prize'' in the category ''Small and medium-sized enterprises''. * The

Massachusetts Institute of Technology The Massachusetts Institute of Technology (MIT) is a private land-grant research university in Cambridge, Massachusetts. Established in 1861, MIT has played a key role in the development of modern technology and science, and is one of the ...

(MIT) honored the company in 2016 as one of the ''50 Smartest Companies 2016'' worldwide. * Out of 6,900 candidates, the company was inducted into the ''Global Cleantech 100'' list for the year 2015 at the ''Cleantech Forum'' in San Francisco. The panel of judges consider it one of the most innovative companies in the category of ''Europe & Israel''. * ''sonnen GmbH'' was among the winners in the comparison of home batteries carried out by the

market Market is a term used to describe concepts such as: *Market (economics), system in which parties engage in transactions according to supply and demand *Market economy *Marketplace, a physical marketplace or public market Geography *Märket, an ...

and

social research Social research is a research conducted by social scientists following a systematic plan. Social research methodologies can be classified as quantitative and qualitative. * Quantitative designs approach social phenomena through quantifiable ...

firm ''EuPD Research'' and the results of which were published by

Wirtschaftswoche ''Wirtschaftswoche'' is a German weekly business news magazine published in Germany. “Wirtschaft” means economy (including business) and “Woche” is week. History and profile For many years, ''Wirtschaftswoche'' was published weekly on ...

in June 2016. * The company is among the winners of the ''StartGreen Award'' 2015. * In October 2015, the company was dubbed ''Wachstumschampion'' by Focus magazine. According to a statement by ''Focus'' and

Statista   Statista is an online platform specialized in market and consumer data, which offers statistics & reports, market insights, cosumer insights and company insights in German, English, Spanish and French. In addition to publicly available thi ...

, the company was among the ten fastest-growing enterprises in Germany. * In 2014, the company received the EUR 100,000 Step-Award from FAZ-Institut and the industrial park operator ''Intraserv GmbH & Co. Höchst KG''.

Memberships

The company is a member of the ''Arbeitsgruppe Energiespeicher'' of the ''Bundesverband Solarwirtschaft'' and member of the ''Bundesverband Energiespeicher (BVES)''.

External links

Website of sonnen GmbH

References

{{reflist, 2 Oberallgäu Renewable energy companies of Germany Energy companies established in 2010