Reservoir Raises $8M to Scale Smart Water Heaters and Grid Energy Storage

Reservoir Raises $8 Million in Seed Funding

Boston-based climate technology startup Reservoir has raised $8 million in seed funding to expand deployment of its smart water heaters and develop their potential as grid-scale energy storage assets.

The round was led by Asymmetric Capital Partners, with participation from Founder Collective and MCJ.

The funding will help Reservoir install more of its water heaters in homes around the Boston area, its initial market.

Smart Water Heating for Homes and the Grid

Reservoir is developing intelligent heat pump water heaters designed to predict household hot water demand and optimize when the system heats water.

Instead of responding only to changes in tank temperature, Reservoir's system learns household water usage patterns and can heat water when electricity demand is lower and prices are cheaper.

The company says its heat pump is nearly four times more efficient than a conventional electric water heater and five times more efficient than a natural gas version.

Using Water Heaters as Energy Storage

Reservoir sees its water heaters as distributed energy storage systems.

By storing electricity as hot water, the company's devices can potentially reduce strain on the electricity grid during periods of high demand.

Reservoir has already tested its technology at the neighborhood level and plans to eventually aggregate its installed water heaters for utility demand response programs.

The company has installed approximately 100 devices to date and is targeting around 1,000 installations by the end of next year.

Features Beyond Traditional Water Heaters

Reservoir's system spends its first month learning household water usage patterns before optimizing heating schedules.

The company has also integrated an ultrasonic flow sensor designed to detect plumbing leaks and alert homeowners through its app.

Its Max model includes additional features such as a recirculation valve for faster hot water delivery and a mixing valve designed to help prevent pipes from freezing.

The 50-gallon Max model can reportedly deliver up to 150 gallons of hot water in "party mode."

Building a Direct Installation Model

Reservoir has also started its own plumbing company to simplify installation and sales.

The company says its direct approach is intended to avoid some of the challenges associated with traditional distributor-led appliance sales.

Reservoir currently offers two models:

• Core: $5,000 including installation

• Max: $6,500 including installation

Massachusetts residents can qualify for a $1,050 rebate.

Leadership

Reservoir was co-founded by Luke Winston-Almanzar, Gabriel Parisi-Amon, and Jake Felser.

Winston-Almanzar previously served as chief business officer at 3D-printing company Formlabs.

The company is initially focused on the Boston market as it works to expand installations and demonstrate the potential of smart water heating as both a household appliance and distributed energy storage resource.

Funding to Expand Deployment

The new $8 million seed funding will support Reservoir's continued deployment in homes around Boston and expansion of its smart water heating technology.

The company is betting that a more efficient and intelligent water heater can provide value to homeowners while also helping utilities manage electricity demand.