German climate startup 1KOMMA5°raises €430 million in funding to create ‘virtual power plant’ for your home
The impact of climate change is undeniable, encompassing the entire globe and reaching an unprecedented scale. Extensive research reveals that about 75% of global greenhouse gas emissions, the main contributor to climate change, stem from the combustion of fossil fuels.
It is for this reason that Hamburg, Germany-based clean energy startup 1KOMMA5° is on a mission to fight against climate change and accelerate CO2-neutral life by creating an easy one-stop-shop to buy and install solar, charging stations and heat pumps to empower households across Europe to break free from the reliance on fossil fuels, thus contributing to a cleaner and more sustainable future.
Today, 1KOMMA5 announced today it has raised €430 million in fresh funding to create a ‘virtual power plant’ for every home, becoming the latest climate startup to join the expanding club of tech unicorns.
Founded less than two years ago by CEO Philipp Schröder, 1KOMMA5° has introduced an innovative IoT device called Heartbeat, which functions as an air traffic control system for managing the energy consumption within your home. This device seamlessly connects various energy infrastructure components such as solar panels, energy storage, car chargers, and heat pumps, optimizing the entire system for maximum efficiency.
1KOMMA5° will use the fresh capital infusion to make Heartbeat compatible with existing energy devices and broaden its reach and impact. In addition, the company intends to invest in a new research and development site in Berlin, though the exact amount of the investment remains undisclosed.
Founded less than two years ago, 1KOMMA5° has introduced an innovative IoT device called Heartbeat, which functions as an air traffic control system for managing the energy consumption within your home. This device seamlessly connects various energy infrastructure components such as solar panels, energy storage, car chargers, and heat pumps, optimizing the entire system for maximum efficiency.
The goal of 1KOMMA5° is not only to decarbonize the energy grid and contribute to the global objective of keeping global warming within 1.5°C (as implied by the company’s name) but also to help homeowners save money in the process. This is achieved through what the company terms “energy system optimization,” wherein the overall efficiency of electrical devices in the home is significantly enhanced.
Heartbeat employs several techniques to reduce electricity bills, such as automatically purchasing power during periods of low cost (e.g., on a windy day) and selling excess power back to the grid when prices are favorable. The device claims to save homeowners approximately €1,550 per year on their energy bills. Additionally, Heartbeat is accompanied by a user-friendly app that provides real-time access to energy flows and historical data.
By creating an interconnected energy system, 1KOMMA5° is essentially building a “virtual power plant” that combines various independent energy sources and improves the balance between supply and demand more efficiently.
Schröder, who was also a former Tesla country director, has been successful in securing capital for the startup. In a funding round last year, the company raised €200 million with notable investors like Porsche and Norrsken Foundation. The most recent funding round, led by California-based fund G2VP, comprises €215 million in equity and an additional €215 million in buyback options.
“The 1.5° climate target needs speed in execution and with this round we are delivering our contribution to make as many buildings CO2 neutral as quickly as possible,” Schröder said.
With the fresh infusion of funds, 1KOMMA5° plans to expand the compatibility of Heartbeat to work with existing energy devices, broadening its reach and impact. Furthermore, the company intends to invest in a new research and development site in Berlin, though the exact amount of the investment remains undisclosed.