Funding Continues to Pour Into Energy Data Disaggregation Software
Just as Verdantix published a blog on Ecova’s acquisition of Retroficiency – we noticed another investment in the energy disaggregation software space. On November 2, 2015 Bidgely closed a $16.6 million Series B round to expand its HomeBeat energy management platform and help scale its presence in Europe. The funding was led by the venture capital arms of utilities from North America and Europe including Exelon Corporation, E.ON and RWE, who are interested in developing more personalized engagement models for their residential customers.
The recent market activity confirms that data disaggregation is one of this year’s hottest innovations in the utility data analytics space. In the past 12 months we have already witnessed FirstFuel receive $23 million in Series C financing, ONZO receive UK government funding and Ecova purchase virtual energy auditor Retroficiency. Opower has also boosted its energy disaggregation capabilities in its 5.5 version of its Flex customer engagement platform released in November 2014. Utilities are also getting excited - with the likes of ComEd, PG&E and TXU Energy already using data disaggregation platforms to break down end-use energy consumption from smart meters.
What does the recent waves of funding mean for the rest of the energy management software market? Initially this will put pressure on other energy data disaggregation specialists such as EEme, HEA, PlotWatt and Smappee – who have not announced any recent funding to support product innovation and market development efforts. Outside of these direct competitors, we expect a wider set of energy management software firms to start forming partnerships to boost their data disaggregation capabilities, as they look to compete with disaggregation start-ups for a share of the lower energy intensity residential and building energy management market.