Redaptive lands $125M to expand no-money-down building efficiency
Redaptive lands $125M to expand no-money-down building efficiency Canary Media
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U.S. Commercial and Industrial Buildings Waste Billions in Energy, Redaptive Aims to Change That
U.S. commercial and industrial buildings waste an enormous amount of energy — about 30 percent of their total energy use, according to the Environmental Protection Agency. That adds up to about $65 billion per year.
The Role of Redaptive
Denver-based startup Redaptive is one of a growing number of “energy-as-a-service” companies willing to take on the risk of paying upfront for major energy-efficiency upgrades to curb that waste. But CEO Arvin Vohra knows that this requires a lot of data to prove that those investments are worth it. After all, that’s how Redaptive and its customers and financial backers earn their money back.
Proving the Proposition
Since its 2015 founding, Redaptive has built a combination of sensors, software, and efficiency implementation expertise to prove out this proposition. On Thursday, it landed the latest vote of confidence in its methods — a $125 million financing from Deutsche Bank’s US Private Credit & Infrastructure group.
Expanding Efficiency Installations
Redaptive will use that money to finance the same kind of efficiency installations and managed services it’s already deployed at more than 3,000 sites for more than 150 major corporate customers including Cintas, Iron Mountain, McKesson, Saint-Gobain, and others. The company aims to make simple things happen, from installing more efficient lighting and reconfiguring HVAC systems to reduce wasted heating and cooling energy to putting solar panels on buildings where they can earn back their cost in reduced utility bills over time.
A Cost-Effective Solution
Redaptive and its financial backers take on the upfront investment and charge per kilowatt-hour saved, with rates lower than the utility bill. This innovative approach makes it easy for companies to say yes to energy-saving projects that are otherwise hard to accomplish given competing capital allocation pressures.
Financial Backing
This is the second major financing for Redaptive’s energy-as-a-service model, following a $50 million financing from Rabobank in 2021. The company has raised about $440 million in total, including a $250 million Series E round this year with investors such as the Canada Pension Plan Investment Board, Linse Capital, Honeywell, and CBRE, valuing the company at about $1 billion.
The Potential Market
The potential market for energy-saving investments is huge, and Redaptive is growing rapidly. With the additional financing, the company expects to utilize the funds by next year.
Comparison to ESCOs
Redaptive’s scope of work pales in comparison to that of the giant energy services companies (ESCOs) that dominate the shared-savings and performance contracting efficiency business worldwide. These ESCOs, mostly units of big building equipment vendors, utilities, and engineering firms, are not designed for the commercial and industrial building markets that Redaptive is targeting.
SDGs, Targets, and Indicators
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 7: Affordable and Clean Energy
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 11: Sustainable Cities and Communities
- SDG 13: Climate Action
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 7.3: By 2030, double the global rate of improvement in energy efficiency
- SDG 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes
- SDG 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management
- SDG 13.2: Integrate climate change measures into national policies, strategies, and planning
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- Energy use reduction in commercial and industrial buildings
- Number of energy-efficient installations and managed services deployed
- Number of major corporate customers adopting energy-saving measures
- Total financing raised for energy-saving investments
4. Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 7: Affordable and Clean Energy | SDG 7.3: By 2030, double the global rate of improvement in energy efficiency | – Energy use reduction in commercial and industrial buildings |
| SDG 9: Industry, Innovation, and Infrastructure | SDG 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes | – Number of energy-efficient installations and managed services deployed |
| SDG 11: Sustainable Cities and Communities | SDG 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management | – Number of major corporate customers adopting energy-saving measures |
| SDG 13: Climate Action | SDG 13.2: Integrate climate change measures into national policies, strategies, and planning | – Total financing raised for energy-saving investments |
Note: The indicators listed are based on the information provided in the article and may not represent an exhaustive list of all possible indicators for measuring progress towards the identified targets.
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: canarymedia.com
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