Startups come and go. In the age of the internet it’s becoming a quick game to play. All to often we hear about new apps, tech and gadgets that create million dollar business overnight. Unfortunately with clean-tech business it seems to take much longer because of the lengthy development cycles. So when new startups come on to the market they’ve probably been in development for several years prior. You have to be more patient with clean-tech startups, and let them grow. This makes it more difficult to find out which startups to watch, follow and learn from. Here I have chosen three clean-tech companies that are making an impact within the sector. I have hand picked these companies because their business models are focused on the customer benefits of their products. They are not companies simply trying push technology, they are genuinely focused on serving the needs of their customers and leaving an impact. These three clean-tech startups cover the basis of residential solar, portable energy storage and energy management. So let’s get into it.
#1 “Fenix International“
Silicon Valley based clean-tech startup founded in 2009.
Who do they serve?
People…
- with limited access to electricity
- in developing countries
- who want to access electricity in their business or at their home
How do they serve these people? What problem do they solve?
Problem. People in emerging nations have limited access to electricity, which is a resource that can be used to improve the quality of life. Not only do emerging nations have difficulty accessing electricity, they also find it difficult to fund the initial costs of any existing portable electricity solutions. Products. ReadySet Solar. The first product launched by Fenix international which gives customers portable access to electricity. The device can be charge via the solar panel included or by grid connected power adaptor. The device was designed for use in emerging nations, however Fenix International also promote its use for portable electricity access in the US and Canada. ReadyPay. The innovation here is not only in the device which; enables people to access electricity when they need it. The innovation is also in how the value of the product is delivered. Customers do not pay for the product as a purchase price but rather they can pay to use the product via subscription based payment system. Similar to a mobile phone plan, the product is sold via a pay-use-system which Fenix International have patented. This means that customers can pay to use the system via their cellphone and they do not have to front up the total cost of the device. Paying upfront for the product would make it much more difficult for people in developing nations where income levels are very low compared to western standards.
Where are they going?
Vision. Fenix’s mission is to deliver quality of life to the 1.3 billion people who live without power in emerging markets
- Sell and distribute over 1 million off-grid solar power systems in Africa by 2018 in order to benefit at least 5 million people, provide access to mobile communications to over 15 million people and deliver 1.1 billion cell phone charges and 1.4 billion hours of clean LED light each year.
- Expand its activities in Uganda as well as two Power Africa Countries: Tanzania and Kenya. In particular, Fenix want’s to expand access to affordable solar power for households and entrepreneurs via our ReadyPay Solar Power System which leverages mobile payments to deliver clean energy for as little as $0.39 per day.
- In order to distribute 1 million off-grid solar power systems, work with Power Africa partners, private investors, and banks to catalyze over $287 million in consumer finance to make solar affordable for customers who currently lack electricity.
#2 “1 Efficiency“
1efficiency is a cloud-based software and services startup founded in August 2012.
Who do they serve?
- Building consultants
- Building managers
- Building owners
- Companies or Tenants
- Building Suppliers
How do they serve these people?
Problem. The energy feedback is separate from user behavior and lacks context. The behavior does not provide a meaningful way to show savings. When information is given on the energy use of a building, it is often tailored to one specific audience (e.g., building engineer) and can be too much or too little for other stakeholders (e.g., owner, manager, tenant) to identify meaningful actions based on the data.
What solution do they offer?
Product. Building-to-grid Software Platform. Main product features:
- Monitor Energy Use: Monitor and compare your utility cost and usage across one or more facilities. Data is accessed from utilities, meters and sub-meters, and integrated so you can easily monitor your electric, water and gas usage across one or more locations – all from a single dashboard.
- Manage Energy Cost: Get Intelligent Energy Feedback based upon behavior science to manage and reduce your energy consumption and carbon footprint. Intelligent feedback is actionable and can be calibrated for different building stakeholders — owner, manager, chief engineer, tenants and employees.
- Reduce Peak Demand: Get alerts prior to peak demand usage. Predictive analytic algorithms provide forecast of peak energy demand which when combined with intelligent feedback provides opportunity to reduce peak demand charges. Peak demand refers to the times of day when electricity consumption is at its highest.
- Compliance Reporting: Comply with local laws and regulatory mandates for Energy Efficiency compliance and benchmark reporting. We support compliance reporting for NYC, Washington D.C, San Francisco, Seattle and Austin.
Where are they going?
Vision. To enhance the performance and efficiency of buildings in an easy and affordable manner while reducing energy usage, operational cost and Green House Gas (GHG) emissions.
#3 “Avalanche Energy“
Massachusetts based solar startup founded by two students from MIT in 2013.
Who do they serve?
- Residential buildings
- Homeowners and bill payers
How do they serve these people? What problem do they solve?
Customer & Problem. Residential solar panels often come with a large upfront investment and can take many years for the panel to pay for itself. In addition the current traditional flat plate or evacuated tube designs are large and heavy. These are all factors that Avalanche Energy found came up as the core residential customer complaints when consumers are seeking to install solar panels. Product. ThermalSquare — Providing Solar Hot Water at a Lower Cost ThermalSquare’s unique double-reflector construction represents a significant step forward in solar hot water heater design. Improving both the size and weight of the overall system, ThermalSquare is able to significantly reduce initial cost and pay for itself in under 3 years. Compare this to the performance of traditional Flat Plate or Evacuated Tube designs which are larger, heavier, and cost significantly more to purchase and install. In addition to the performance improvements mentioned below, ThermalSquare comes with a sleek design, packaged to be easy to use, install, and maintain.
Where are they going?
Vision. To eventually replace all energy use in the home – from hot water to electricity. “We are driven to help realize the solar future — an end-to-end supplement to home energy consumption using solar alternatives.”
Why these companies?
After doing a bit of research I could see that many companies in the clean-tech sector had more of a focus on promoting their technology and less of a focus on the needs of their customers. It doesn’t matter whether the customers are end-user consumers, other businesses or even the public sector it’s extremely important to focus on their needs and to produce value for them. There is not a lack great technology in the clean-tech sector, but rather a lack of startups that show proof that they have what customers really want and how they could meet those needs with their business. These companies have been chosen because they have powerful value propositions and clear focus on the end user (B2B or B2C). I hope these provide some inspiration and remember you don’t have a potential business concept until you have a real customer need and a way to meet that need!
What clean tech companies are you going to follow in 2014? I’d love to hear about them in the comments.
P.S. If you interested on gaining some tips on clean-tech innovation, I have prepared a new, free ebook “Most Engineers Make These Fatal Mistakes in Business, Do you?” for The Daily Fusion readers which I think you’ll love.
