On March 20, we heard from Emily Morris, CEO of Emergy, about the company’s impressive progress in revolutionizing hydropower technology. Since its founding in 2016, Emergy has been harnessing the power of flowing water in canals to generate electricity, providing a sustainable and cost-effective energy solution. When we first connected with Morris in 2023, the company was already making strides, but its growth has been remarkable in the last two years. Emergy is a prime example of what it takes to scale a cleantech startup and build wealth in the renewable energy sector.

Growing the Team and Scaling Operations

Emergy has expanded to 24 employees, reflecting its rapid development. However, Morris emphasizes that team building is one of the toughest challenges for any growing company. She advises that when a team member isn’t the right fit, it’s best to make changes sooner rather than later—a strategy that benefits both the company and the individual.

Emergy has standardized its hydropower units into factory-built modular kits to enhance efficiency and scalability. These systems, available in 5-25 kW sizes, are easily installed on-site using cranes or similar equipment, making deployment more accessible for a variety of locations.

Shifting to a Recurring Revenue Model

One of Emergy’s most significant advancements is its transition from an equipment sales model to a recurring revenue business. By adopting an energy-as-a-service approach, the company offers no money up-front installations, making projects more attractive to customers. Thanks to strategic de-risking through experience and data collection, investors are now willing to finance these installations in exchange for a portion of the revenue.

This financial backing was made possible through an $18 million Series A funding round, allowing Emergy to prove its new model and scale up operations. With this approach gaining traction, Emergy aims to install 15 MW of hydropower capacity in 2024, requiring the purchase of hundreds of units annually.

A Cost-Effective Renewable Energy Solution

Emergy is refining its value proposition, highlighting the affordability and reliability of its hydroelectric technology. Because water conveyance structures operate 24/7 for most of the year, the capacity factor remains high, and the cost of power is exceptionally low—around 5 cents per kWh. With installation costs between $3,000 and $4,000 per kW, these units present a compelling alternative to rising utility rates, particularly for farmers looking for behind-the-meter power sources to reduce electricity expenses.

Expanding Market Reach and Partnerships

To maximize its impact, Emergy is now targeting installations of 250 kW or more, using twin modules placed every 100 feet along a canal. These units generate DC power, which is then converted to AC using string inverters, much like solar energy systems.

As the company scales, it is actively seeking strategic partners to help identify and secure deals, oversee installations, and provide operations and maintenance (O&M) services. Morris recognizes that local partners are better positioned for deal-making, while Emergy focuses on project financing and system development.

A Global Vision for Hydropower

With over 2 million linear miles of water conveyance infrastructure worldwide, Emergy has only scratched the surface, having addressed just a few thousand miles so far. The company is now eyeing global expansion, aiming to bring its innovative, renewable energy solutions to a broader audience.

Learn More About Emergy’s Progress

For a deeper dive into Emergy’s journey, check out the full session on our YouTube Channel and revisit the 2023 discussion for more insights into how the company has evolved. Emergy’s story is an invaluable case study for anyone in cleantech, renewable energy, or startup development.

Stay tuned for more updates on cutting-edge clean energy innovations!