Dive Brief:

• Mercedes-Benz Energy and Vivint Solar have entered into an exclusive strategic collaboration to sell solar-plus-storage systems in the U.S. market.

• The design of the energy storage systems calls for modular 2.5-kWh batteries that can be combined into a system as large as 20 kWh.

• The companies plan to target California as their first market, rolling out the first systems in the second quarter, offering customers the choice of either buying a system outright or financing it through institutions with which Vivint Solar has relationships.

Dive Insight:

Mercedes-Benz launched a U.S. stationary storage company in November with plans to begin selling battery storage products to customers in 2017.

The company is hoping to leverage the economies of scale it can gain out of large-scale buildout of battery manufacturing facilities for its electric vehicles.

Vivint gives Mercedes a platform from which to reach solar power customers using the solar company’s expertise in designing, installing and servicing solar power systems.

For Vivint, it will be the first time the company has integrated battery storage with its solar power systems.

“We look forward to bringing this innovative solution to consumers, beginning in our California markets, and to empowering greater renewable energy usage,” David Bywater, CEO of Vivint Solar, said in a statement.