Wasted energy is bad for the environment and the bank account, but it’s a common problem in the business world. In commercial buildings alone, an estimated 30% of power is wasted, according to data from Redaptive, which aims to help fix the problem.
Redaptive is a San Francisco-based Energy-as-a-Service (EaaS) provider. It funds and installs equipment that preserves and generates energy to help clients overcome financial and logistical barriers that can turn wasted power into lower carbon emissions and financial savings.
The company, founded in 2015, is staffed with a team of technology and business experts. They deliver its EaaS platform to three main target markets: enterprise customers, healthcare or education campuses, and ecosystem partners.
The platform provides clients with data-driven energy-generation and efficiency programs that range from renewables and electric vehicles to HVAC systems, lighting, and other upgrades. The system can be installed at large sites or across real estate portfolios. Redaptive funds the upfront costs to reduce barriers that might occur while planning for energy transitions.
In a January blog, John Rhow, Redaptive president and executive chairman, noted that businesses “have every reason to go green” but run into many hurdles getting there. “Despite market support for decarbonization initiatives, many companies struggle to implement these projects successfully,” Rhow wrote.
He cited a report from Accenture that found that 93% of companies with net-zero commitments will miss their targets unless they accelerate progress.
“When it comes to building energy infrastructure, organizations too often rely on a maintenance-based, run-to-fail reactive paradigm,” Rhow noted. “Additionally, retrofits are outside of an organization’s core business.”
Among the deterrents companies face are a lack of funds and data, insufficient resources, and not enough guidance, expertise, and bandwidth. Redaptive helps solve those problems by providing financial help and the necessary data and expertise.
“We’ve found that most companies don’t have team members with a background in corporate sustainability, nor do they have the resources to hire a Chief Sustainability Officer or to develop a decarbonization department,” Rhow added. “EaaS allows companies to reduce their energy waste by approximately 30%, improving their environmental impact while saving money.”
Redaptive works with a range of clients worldwide — including C-suite executives, sustainability directors, and facility managers at Fortune 500 companies — to help them overcome capital and contractual challenges to lower power costs and reduce emissions.The market for these services continues to expand.
In 2022, Redaptive more than doubled its expected bookings from the previous year. It aims to capture an even bigger share in the coming years. According to a company press release, the North American EaaS market is projected to increase at a 30% compound annual growth rate between 2022 and 2030, from $4.8 billion to $38.5 billion.
The firm should be well positioned to take advantage following a $200 million funding round led by the Canada Pension Plan Investment Board (CPP Investments). The round, announced in December, also included participation from Linse Capital and CBRE. The company is expected to announce a second funding close in early 2023.
“This funding gives Redaptive the capability to accelerate our growth and help more customers reach and exceed their energy efficiency and sustainability goals,” said Arvin Vohra, Redaptive CEO. “In CPP Investments, we have found a partner who understands our mission and shares our passion for making carbon reduction an attainable goal for organizations around the world.”