R
eshape Energy is tackling the slow pace of energy upgrades in commercial real estate by offering a one-stop-shop model. Founded in Munich, Germany, the startup is led by a team with expertise scaling energy businesses and targets property owners with portfolios of buildings. They're focusing on selling energy system upgrades to commercial real estate, which contributes significantly to climate change through carbon emissions from heating.

    Reshape Energy's founders realized that the sector's slow uptake isn't due to a single missing piece but rather systemic complexity in orchestrating various bits needed for successful projects. Commercial property owners lack expertise and often don't want to deal with it as it's not their core business, while construction is heavily reliant on trust. The startup aims to break out of siloed workflows by covering all stages of a project, from initial assessments to installation and ongoing servicing.

    To achieve this, Reshape Energy has adopted an acquisition model, buying existing companies in the sector to bring key capabilities and customer relationships in-house. This allows them to offer energy-optimization-as-a-service, including financing options for customers. The startup has already made some acquisitions and plans to use a new €5 million funding round to continue expanding its offering.

    Reshape Energy's model is capital-efficient compared to other approaches that involve buying up real estate to transform it via modernizing energy infrastructure. While this approach can be lucrative, it requires significant upfront investment and may not align with the startup's mission of accelerating the energy transition. By focusing on providing services rather than owning property, Reshape Energy aims to unlock efficiencies in project delivery while leveraging trusted customer relationships.

    The company is well-positioned to tackle more complex challenges like commercial real estate upgrades, which require a joined-up approach to delivering heat pumps and other low-carbon solutions. Reshape Energy's founders believe that their model can help overcome the inertia holding back energy upgrade projects in commercial real estate, ultimately contributing to a faster transition to lower-carbon forms of heat management.