Reservoir raises $8M to make water heaters that people — and the grid — will actually want
Reservoir has built an ultra-efficient water heater that can predict hot water demand, store energy, and detect plumbing leaks throughout a home.
Luke Winston-Almanzar, co-founder of Reservoir, believes that water heaters are an underappreciated yet critical home appliance. He argues that today's water heaters are inefficient, costing households about 18% of their total energy budget and causing significant residential water damage. Winston-Almanzar founded Reservoir with Gabriel Parisi-Amon and Jake Felser to create a smarter, more efficient water heater. The startup recently secured $8 million in seed funding to bring its innovative product to market.
Reservoir's water heaters are designed to be smarter and more efficient than traditional units. The devices predict when residents will need hot water, heating the tank when electricity demand is low and prices are cheapest. The heat pump is nearly four times more efficient than electric water heaters and five times more efficient than natural gas models. By aggregating its fleet of water heaters, Reservoir could participate in utility demand response programs, earning money by avoiding grid usage during peak times.
To make its product more appealing to consumers, Reservoir incorporated features not typically found in water heaters. Their predictive heating feature learns a household's water usage patterns over the first month, allowing the heat pump to operate during the most efficient and cost-effective times. Additionally, an ultrasonic flow sensor detects plumbing leaks, alerting homeowners via app.
The Max version also includes a recirculation valve for instant hot water and a mixing valve to prevent frozen pipes during cold weather. A 50-gallon tank can deliver up to 150 gallons of hot water in "party mode," enabling rapid hot water supply for gatherings.
Reservoir's "Core" model costs $5,000, while the "Max" version is priced at $6,500, installation costs included. Massachusetts residents benefit from a $1,050 rebate, significantly reducing the price. Competitively, the "Core" model is priced similarly to other heat pump water heaters, but Reservoir's model offers substantial energy savings, potentially saving Boston homeowners up to $1,000 per year.
With a 10-year warranty, Reservoir aims to offer an affordable and sustainable solution for water heating, potentially driving mainstream adoption of the technology and reducing pressure on the grid.
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