Redaptive Inks $125M Financing Deal for EaaS Sustainability Programs

Building Management Systems

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by | Aug 24, 2023

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Redaptive, an energy-as-a-service company that funds and installs energy-saving and energy-generating equipment, has secured $125 million in financing from Deutsche Bank.

The company said the financing will accelerate its metering, HVAC, solar, LED, EV, and other efficiency and sustainability platforms. The warehouse facility financing comes from Deutsche Bank’s U.S. Private Credit and Infrastructure group. Redaptive said the financing will securitize its portfolio of customer contracts to provide EaaS and data offerings.

EaaS typically outsourced energy management, with customers using energy and other systems, such as systems installation and usage monitoring software, on a subscription basis. This means customers are more or less leasing the energy and services and avoiding bigger upfront costs.

According to Redpative, its EaaS can offer customers upgrades, such as HVAC efficiencies and LEDs, that optimize energy usage. Redaptive owns and maintains the upgraded equipment.

The company’s business model could be a big help to building owners looking to better manage their energy consumption. Almost 30% of global carbon emissions come from heating and powering buildings, according to an estimate from the World Green Building Council. Companies may be able to lower their energy costs faster because the EaaS model does not require them to own the upgraded equipment that improves efficiency. 

The company also tracks and analyzes building performance and consumption of water, gas, and energy. The data analysis can help customers with their environment, social, and governance reporting goals for building portfolios through its metering platform, Redaptive ONE.

“We’re excited to partner with Deutsche Bank to further entrench Redaptive’s leadership position in the Energy-as-a-Service market,” Redpative CEO Matt Gembrin said in a statement. “This partnership expands our ability to offer competitive solutions to help companies reach net zero and lower their carbon footprint.”

The financing news also comes as some U.S. cities and regions are looking for ways to reduce emissions in commercial buildings. For example, in late 2021, Denver passed an ordinance requiring all commercial and multifamily buildings to reduce greenhouse gas emissions by improving energy efficiency, renewable energy, and building electrification. The move aimed to reduce building emissions by nearly 80% by 2040.

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