Reservoir Turns Water Heaters Into Smart Thermal Batteries

Reservoir, a new startup, is developing a smart heat pump water heater designed to function as a thermal battery, predicting household hot water needs and heating water during off-peak hours when electricity rates are lowest. This innovative approach aims to significantly reduce home energy costs, with potential annual savings of up to $800 for consumers. The company's cofounder and CEO, Luke Winston-Almanzar, was motivated to launch Reservoir after electrifying his own home and realizing the substantial energy consumption of traditional water heaters, which he found to be greater than that of his electric vehicle. He observed that existing heat pump water heaters, while efficient in design, suffered from slow warm-up times, inconsistent hot water availability, clunky software, and excessive noise.

Winston-Almanzar, who previously served as chief business officer at the 3D-printing company Formlabs, collaborated with Gabriel Parisi-Amon, a former Apple employee and cofounder of the shower startup Nebia, and Jake Felser, who has experience in rocket engine development at Blue Origin, to create a superior product. The core of Reservoir's innovation lies in its intelligent software, which learns user habits to anticipate demand for hot water. This predictive capability allows the system to proactively heat water, ensuring it is available when needed while capitalizing on lower electricity prices. The company emphasizes that its product is significantly "smarter" than conventional water heaters, drawing a parallel to the advanced features found in everyday appliances like air fryers.

The upfront cost of Reservoir's heat pump water heater is positioned to be comparable to existing water heater models on the market. However, the long-term energy savings are projected to offset this initial investment. The technology leverages the efficiency of heat pump systems, which extract heat from the ambient air to warm water, a more energy-efficient method than traditional electric resistance heating. By integrating smart predictive controls, Reservoir aims to optimize this efficiency further, aligning water heating schedules with the most economical electricity rates. This strategy not only benefits the consumer's wallet but also contributes to grid stability by shifting energy demand away from peak hours.

Reservoir's approach addresses a gap in the smart home technology market, where water heaters have historically received less attention compared to other energy-consuming appliances like solar panels or heat pumps. The startup's focus on making this essential home appliance intelligent and cost-effective represents a significant step towards more integrated and efficient home energy management. The company's founding team brings a diverse range of expertise from technology and product development, positioning them to tackle the engineering and software challenges associated with creating a truly smart and reliable water heating system. The goal is to transform a largely overlooked appliance into a key component of a modern, energy-conscious household.