Key facts
- Reservoir has raised $8 million in seed funding.
- The company is developing smart water heaters that can store energy and predict usage.
- These water heaters are designed to be more energy-efficient than traditional models.
- Reservoir aims to help stabilize the electrical grid by managing heating times.
- The 'Max' version of the water heater costs $6,500, and the 'Core' version costs $5,000, with installation included.
Reservoir, a startup aiming to modernize the water heater, has secured $8 million in seed funding. The company is developing intelligent water heaters designed to be significantly more energy-efficient and capable of storing energy, thereby reducing household utility costs and potentially stabilizing the electrical grid.
Co-founder Luke Winston-Almanzar highlighted that traditional water heaters are energy-intensive and lack intelligence, consuming more energy than electric cars. Reservoir's approach involves predictive heating, utilizing a heat pump that is nearly four times more efficient than standard electric models and five times more efficient than natural gas versions. The device learns household water usage patterns to heat water during off-peak hours when electricity is cheaper and demand is lower.
Beyond energy efficiency, Reservoir's water heaters include features like an ultrasonic flow sensor to detect leaks and alert homeowners via an app. The premium 'Max' version offers additional functionalities such as a recirculation valve for instant hot water and a mixing valve to prevent pipe freezing. The company has already installed about 100 units and aims to reach 1,000 installations by the end of next year, which Winston-Almanzar estimates could represent megawatt-scale energy storage capacity.
To simplify the purchasing process and ensure adoption of their technology, Reservoir has also established its own plumbing company, drawing inspiration from Winston-Almanzar's experience at Formlabs. The 'Max' model is priced at $6,500, and the 'Core' model at $5,000, with installation included. Massachusetts residents are eligible for a $1,050 rebate. Reservoir projects that its water heaters can save typical Boston homeowners up to $1,000 annually in energy costs, with a 10-year warranty ensuring long-term value.