Energy-as-a-service company Redaptive, which enables private sector-owned commercial and industrial buildings to adopt data solutions and energy savings programs without upfront investment, announced additional fund raising to bring their Series-E total to $250 million.
“This latest investment follows recent contributions to the round made by Canada Pension Plan Investment Board (CPP Investments), Honeywell, CBRE, and others,” said the company’s press release. Redaptive will use the additional investment “to support enterprise customers with data-driven energy generation and efficiency programs including HVAC, LED lighting, solar, EV, as well as Data Solutions, and other utility upgrades that can be deployed at large sites or across distributed real estate portfolios.”
“Energy-as-a-service (EaaS) is a business model whereby customers pay for an energy service without having to make any upfront capital investment,” says non-profit research institution Resources for the Future. “EaaS models usually take the form of a subscription for electrical devices owned by a service company or management of energy usage to deliver the desired energy service.”
Redaptive provides two types of services. One focuses on data, as the company’s website says. “We provide turnkey solutions to capture energy and water consumption data that helps drive ESG and Sustainability reporting, portfolio wide cost reduction, and energy project opportunity identification.”
The other service area is energy savings, in which businesses get fully-funded projects “to accelerate and scale efforts to reduce energy waste, optimize cost, increase resiliency, and meet sustainability goals.”
“Redaptive’s solutions are designed to help enterprise customers overcome the financial and logistical barriers to investing in energy efficiency and sustainability,” the press release said. “By funding the upfront costs, providing turnkey implementation of projects, and measuring the results through smart metering, Redaptive is the ‘easy button’ for organizations looking to achieve net zero.”
Because energy-as-a-service companies tend to fully fund projects, using a combination of energy savings and revenue from power grids that are trying to reduce their power loads, they are capital intensive and need to raise large amounts to bankroll projects.
Logical Buildings, a DBA for Energy Technology Savings that deploys IoT devices and uses data to improve building energy efficiency, announced in April 2023 a $110 million investment from Keyframe Capital to back its energy-as-a-service initiative.