New funding: Seattle-based Allumia has raised $7.5 million. The “Series A2” round was led by existing investor JW Asset Management with participation from American Electric Power and Duke Investments. The new round brings Allumia’s total investments to $10 million.
The business: CEO and founder Aaron Block launched Allumia in 2013. The company helps commercial and industrial business owners pay for, select, monitor and maintain more energy-efficient lighting, refrigeration, HVAC and other technologies.
The platform allows for automated communications, includes information about utility rebates for calculating upgrade costs, and provides performance and maintenance information to help customers select the best products to cut their electricity demand.
The buyers: Customers include warehouse owners, manufacturers, stadiums and retail spaces such as mini-marts and chain restaurants. The projects typically cost between $50,000 and $5 million. Allumia often partners with utilities promoting energy-efficiency upgrades, or markets directly to customers.
Allumia underwrites their customer’s loan to pay for the more efficient equipment. Customers sign 5-to-7 year contracts, during which time they pay back the loan. Services covered by the contract include Allumia’s energy use performance monitoring and maintenance of the equipment upgrades.
The electric bill savings are typically large enough to cover the cost of the new equipment, said Chief Revenue Officer Brian Bradford.
The market: Allumia has customers nationwide and offices in Seattle and Baltimore. Other companies in the space include CLEAResult and Nexant.
The take: Governments and businesses are setting ambitious goals for reducing carbon emissions, which can include using less energy and producing power from non-fossil fuel sources. Last month, President Biden announced the “Buildings Performance Standards Coalition” to cut energy use by buildings.
Allumia is helping facilitate these efforts, offering “decarbonization as a service,” Bradford said.