A case for public funding that accelerates climate tech and pays off.

One of the biggest hurdles clean energy entrepreneurs face is bridging the “valley of death” between promising technology and a market-ready product. Since 2019, New Energy Nexus’s CalTestBed Initiative has tackled that challenge head-on (thanks to a US$22M investment made through the EPIC program by the California Energy Commission).

By offering startups vouchers for third-party testing at world-class facilities, CalTestBed helped 63 companies validate their technology, gain investor trust, and accelerate their path toward commercialization. The return?

A 19.9x multiplier:

• US$22M in testing support led to
• US$438M in follow-on funding
• 300+ jobs created

Why it works: Trusted testing builds investor confidence

Startups received up to US$300,000 each in testing vouchers, redeemable at over 70 labs across Lawrence Berkeley National Lab and nine UC campuses. This provided them with access to rigorous, independent validation – exactly what investors and customers need to mitigate the risks associated with early-stage technologies.

And the benefits went beyond funding.

58% of companies that completed testing reported TRL advancement; on average, their Technology Readiness Level (TRL) increased by 2.1

Several jumped from prototype to market-ready

“We went from TRL 6 to 9,” said a representative from Delphire Inc., a grid tech company. “That shift helped us unlock market access and investor interest.”

Innovation in action: real-world success stories

The companies that came through CalTestBed aren’t just testing, they’re scaling:

• Community Energy Labs is helping over 20 school districts reduce their energy bills with smart building controls.
• EH Group signed a deal to develop hydrogen fuel cell drivetrains for maritime shipping.
• Enzinc opened a 10,000 sq. ft. plant in Oakland to scale zinc batteries—a safer, more sustainable alternative to lithium-ion batteries.
• Gridware partnered with S&C Electric to launch a grid resilience solution.
• ReJoule, an award-winning startup, enables EV battery reuse, building the circular economy for clean transportation.

The Enzinc team at the facility’s ribbon-cutting ceremony.

Why Californians should care

The impact of CalTestBed goes beyond investor returns. For ratepayers, it means:

• More reliable energy from proven, efficient tech
• Lower bills from faster deployment of cost-saving innovations
• Safer systems through standardized testing
• A stronger economy from job creation and homegrown climate solutions

A smart bet on the future

CalTestBed, funded by the California Energy Commission’s EPIC program and administered by New Energy Nexus, is a model of how modest public investment of US$22M can unlock climate, economic, and equity wins. As the current funding cycle concludes in 2025, one thing is clear: this model works. It bridges the innovation gap, supports diverse entrepreneurs, and delivers value to investors and the public.

Read the CalTestBed impact report.