Honeywell Invests in Energy-as-a-Service Vendor Redaptive

Honeywell announced that it had invested in energy-as-a-service company Redaptive to bring the latter’s capabilities to private sector-owned commercial and industrial buildings.

Details of the deal were not disclosed.

“Energy-as-a-service (EaaS) is a business model whereby customers pay for an energy service without having to make any upfront capital investment,” says non-profit research institution Resources for the Future. “EaaS models usually take the form of a subscription for electrical devices owned by a service company or management of energy usage to deliver the desired energy service.”

Redaptive provides two types of services. One focuses on data, as the company’s website says. “We provide turnkey solutions to capture energy and water consumption data that helps drive ESG and Sustainability reporting, portfolio wide cost reduction, and energy project opportunity identification.”

The other service area is energy savings, in which businesses get fully-funded projects “to accelerate and scale efforts to reduce energy waste, optimize cost, increase resiliency, and meet sustainability goals.”

“This investment helps enable the rapid deployment of technologies designed to reduce carbon emissions across a large portfolio of buildings,” Honeywell’s press release states. “This collaboration combines Honeywell’s experience in energy savings performance contracting (ESPC) and building controls capabilities with Redaptive’s innovative data technology and EaaS platform. It provides customers with more ways to baseline current energy usage and reduce consumption to achieve their sustainability goals – with little-to-no upfront investment.”

Honeywell says that the EaaS approach is “well-developed in the public sector, as well as in the education and healthcare markets,” but lacking market penetration in private sector commercial and industrial owners and operators “who have traditionally made the full investment in energy audits and upgrades, potentially impeding the opportunity to fully capture energy savings.”

The company also said that it would deploy Redaptive’s technology in its own buildings.

“Research shows that the building and construction sector accounts for 34% of energy demand and 37% of energy and process-related CO2 emissions,” the release said. “The collaboration provides the companies with access to each other’s capabilities. This includes Redaptive’s data technology, energy assessments, and efficient capital deployment to identify the energy conservation measures with the best return on investment, as well as Honeywell Buildings Sustainability Manager to monitor, control and optimize a building’s energy use and carbon emissions.”