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AI-backed retail energy startup based in Houston prepares to grow its technology

Houston-based Evolve Energy uses a subscription-based wholesale energy plan to help its customers find better prices for more sustainable resources. Photo via evolvemyenergy.com

A wholesale retail energy startup based in Houston is preparing to scale its artificial intelligence-backed business based on its positive customer feedback

Evolve Energy uses AI and machine learning to optimize energy usage, providing customers with the best wholesale energy prices on fluctuating renewable resources.

"We want to help our customers save a significant amount of money on electricity costs and help them decarbonize the grid," CEO Michael Lee tells InnovationMap."There's been a serious of emerging events that enable us to do both at the same time, it's no longer a choice."

Evolve Energy, founded in 2018, sells wholesale electricity at cost to residential customers in Texas, charging a $10 monthly subscription fee plus the cost of wholesale electricity. Using their AI technology, they predict when price surges are likely and determine how much energy the customer needs to hit the parameters set on the app by the customer and usage history. The customer does not need to do anything but pair Evolve with their smart thermostat.

According to Lee, this enables customers to continue to use the same volume of electricity but cut their bill by 40 percent over the course of a year. Evolve uses a different business model, positioning itself not as energy providers but as efficient energy managers, passing their wholesale rate with no markup for even more savings to the customer.

"It builds a lot of trust between the customer and the supplier, they truly see that our incentive is to save them money and not to sell them any more power," Lee says.

With the increasing trend of electrification, Lee sees the role of energy companies grow in importance. This gives energy managers like Evolve a magnified role as machine learning and AI becomes imperative to shift consumption when renewables are cheaper on the grid.

Evolve is backed by several investors including Matt Rogers, the original co-founder of Nest thermostats through his investment platform, Incite; Urban-X funded by BMW MINI which focuses on smart applications; and the Austin-based startup accelerator and investor, Capital Factory.

The company has been officially on the market for the past two months, but it's already working on deploying capital to build in features requested by customers. Evolve expects significant growth in the next few years due to its highly scalable model.

"I'm just glad we could create a product that no longer makes it a choice between reducing emissions and saving money," Lee says.

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Building Houston

 
 

Houston innovators podcast episode 140

What Houston can expect from its rising innovation district

Sam Dike of Rice Management Company joins the Houston Innovators Podcast to discuss the past, present, and future of Houston's rising Ion Innovation District. Photo via rice.edu

Last month, the Ion Houston welcomed in the greater Houston community to showcase the programs and companies operating within the Ion Innovation District — and the week-long Ion Activation Festival spotlighted just the beginning.

The rising district — anchored by the Ion — is a 16-acre project in Midtown Houston owned and operated by Rice Management Company, an organization focused on managing Rice University's $8.1 billion endowment.

"We're chiefly responsible for stewarding the university's endowment and generating returns to support the academic mission of the university," says Samuel Dike, manager of strategic initiatives at RMC, on this week's episode of the Houston Innovators Podcast. "Part of those returns go to support student scholarships and student success — as well as many of the other academic programs."

"The university sees a dual purpose behind the investing," Dike continues, in addition to focusing on generating returns, RMC's mission is "also to be a valuable partner in Houston's ecosystem and pushing Houston as a global 21st century city."

RMC saw an opportunity a few years back to make an investment in Houston's nascent innovation and tech ecosystem, and announced the plans for the Ion, a 266,000-square-foot innovation hub in an renovated and rehabilitated Sears.

"In some ways innovation is not necessarily about creating something completely new — it's oftentimes building upon something that exists and making it better," Dike says. "I think that's what we've done with the building itself.

"We took something that had really strong bones and a strong identity here in Houston," he continues, "and we did something that's often atypical in Houston and preserved and repurposed it — not an easy logistical or financial decision to make, but we believed it was the best for Houston and for the project."

Now, the Ion District includes the Ion as the anchor, as well as Greentown Houston, which moved into a 40,000-square-foot space in the former Fiesta Mart building, just down the street. While RMC has announced a few other initiatives, the next construction project to be delivered is a 1,500-space parking garage that will serve the district.

"It is not your typical parking garage," Dike says. "The garage will feature a vegetated facade with ground-floor retail and gallery space, as well as EV charging spaces and spaces to feature display spaces for future tech. It's going to be a nice addition to the district."

The new garage will free up surface parking lots that then will be freed up for future construction projects, Dike explains.

He shares more about the past, present, and future of the Ion and the district as a whole on the podcast. Listen to the interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.



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