Redaptive, a Denver-based energy efficiency service provider to commercial and industrial buildings, announced an additional equity commitment from Linse Capital, a growth equity firm invested in energy, mobility, logistics and real estate. The add-on funding brings the company’s cumulative Series E round to $250 million, and represents a significant step towards expanding Redaptive’s offerings and procuring new customers, the company said.
Redaptive installs energy efficiency systems that include smart meters, heating, ventilation and air conditioning (HVAC) upgrades, and LED lighting systems at no cost to its customers. The company’s business model involves a monthly “energy-as-a-service” contract, which with no upfront cost to the customer provides more commercial clients to sign up for energy efficiency and sustainability solutions.
The company itemizes efficiency solutions, solar and energy storage at a portfolio of customer building sites into one contract. As the installer, the company is paid over time from energy savings from the customer account. The solar and storage assets take a power purchase agreement (PPA) structure with no upfront cost required from the customer, the company said.
“As one of the original investors in Redaptive, I have seen firsthand the company mature into one of the best players in the energy efficiency and sustainability space that provides a truly differentiated and strong value proposition to its customers,” said Michael Linse, founder and managing director, Linse Capital. “With such a large addressable market in the U.S. and globally, we are doubling down on our investment and look forward to helping Redaptive continue to scale its leading EaaS and Data Solutions platform.”
The Series E add-on investment follows the March 2023 initial Series E funding round when the Canada Pension Plan Investment Board joined Honeywell, CBRE, and other prior investors. Formed in 2013, Redaptive has raised over $360 million in growth capital to date from VC and strategic investors that include Engie New Ventures, CarVal and GXP Investments, the VC arm of Midwestern utility Great Plains Energy.
Solar expansion
Across the U.S., over 450,000 warehouses and distribution centers have 16.4 billion square feet of roof space, providing fertile ground for new commercial and industrial solar installations. California alone is home to over 66,000 warehouses and distribution centers with 1.5 billion square feet of roof surface area, according to a recent report by Environment California and the Frontier Group.
With the average cost of commercial building electricity rising by 10% since 2021, customers of Redaptive begin by installing smart lighting, meters, sensors and other efficiency solutions, which initially provide 15% or more in annual energy savings. The company expects to achieve additional monthly energy savings for its customers with on-site solar generation.
The company said over 70% of its commercial clients’ building portfolios are suitable for solar projects.
Case study
With a net zero goal to offset its energy consumption with clean energy by 2050, commercial uniform, apparel and cleaning company Cintas signed up with Redaptive in March of 2023 to upgrade lighting fixtures across more than 100 of its 450 U.S. facilities, representing 6 million square feet of commercial space.
Lighting efficiency upgrades replacing 42,000 incandescent light bulbs with efficient lighting have driven 18.7 million kWh or $2.2 million of annual energy savings for Cintas, according to the customer.
Working with both Redaptive and the state of New Jersey, in April Cintas began installation of its first solar-powered system at a rental location in Piscataway, N.J. The project is expected to be installed and operational in the late spring of 2023. Once online and connected to the grid, the first solar panel system installation will allow Cintas to evaluate its year-round performance and compare the costs with traditional utility-based energy sources.
“The expansion of our program with Cintas to include solar installations alongside LED retrofit projects is a big step forward on Cintas’ path to a sustainable energy future,” said Arvin Vohra, chief executive officer of Redaptive.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
It is truly inspiring to read about the remarkable achievements of HVAC, lighting, and solar integrator in securing their Series E funding round. This is not only a testament to their exceptional expertise and dedication but also a clear indication of the growing importance of sustainable energy solutions in today’s world.