Reservoir secures $8M seed round to scale smart water heater fleet in Boston
Co-founded by Luke Winston-Almanzar, Reservoir aims to install 1,000 units by next year, leveraging predictive algorithms to reduce household energy costs and support utility demand response programs.
Reservoir, a startup co-founded by Luke Winston-Almanzar, Gabriel Parisi-Amon, and Jake Felser, has secured $8 million in seed funding led by Asymmetric Capital Partners. The round also saw participation from Founder Collective and MCJ. The capital will be deployed to expand the installation of the company’s intelligent water heaters within the Boston area, its initial market, with a strategic target of reaching 1,000 units by the end of next year.
The company has installed approximately 100 devices to date. Winston-Almanzar, who previously served as chief business officer at 3D printing firm Formlabs, noted that reaching this scale is critical for aggregating capacity. At 1,000 units, the fleet would begin to operate at a megawatt scale, allowing the devices to store significant energy as hot water and potentially stabilise the local power grid during peak demand periods.
Reservoir’s technology utilises predictive heating algorithms and heat pump systems to optimise energy consumption. The devices learn household usage patterns during an initial month-long training period, subsequently heating water when electricity demand is low and prices are cheap. The company claims its heat pump technology is nearly four times more efficient than standard electric heaters and five times more efficient than natural gas versions.
Beyond efficiency, the hardware includes features designed to address common consumer pain points and infrastructure risks. The units incorporate ultrasonic flow sensors to detect plumbing leaks, sending alerts directly to homeowners via a dedicated app. The higher-tier 'Max' model also features a recirculation valve for instant hot water and a mixing valve to prevent pipe freezing, while offering a 'party mode' capable of delivering up to 150 gallons of hot water from a 50-gallon tank.
To streamline sales and installation, Reservoir has launched its own plumbing service, bypassing traditional distributors. The 'Core' model is priced at $5,000 and the 'Max' at $6,500, both inclusive of installation. Massachusetts residents are eligible for a $1,050 rebate, reducing the Core model’s effective price to $3,950. The company projects that typical Boston homeowners could save up to $1,000 annually in energy costs, with a breakeven point expected well before the expiration of the 10-year warranty.
