EcoFactor has developed smart algorithms that can control connected thermostats to reduce a building’s overall energy consumption. The system learns the customer’s behavior and can shave off energy consumption without the occupant really knowing. The service can also enable utilities to practice what the power industry calls demand response, where during peak energy usage hours of the day (like a hot summer day) a utility can turn down the energy use of amenable customers.

NV Energy is offering the efficiency service to its customers under the mPowered brand, and those customers can see reduced energy bills. EcoFactor is supposed to enable NV Energy to cut a minimum of 20 MW in Las Vegas market during the first phase of the mass deployment.

The mass deployment is a major milestone for the development of more automated, more consumer-focused demand response services. For a long time demand response has been manual, where large building owners or factory owners agree to manually turn down their energy use during peak times in exchange for compensation. The utility would alert them to the demand response time by phone call or email. But with automated systems and residential-focused services, demand response can be much more efficient and convenient.

EcoFactor was founded in 2006 and launched in late 2009. Its software plugs in a lot of data about things like weather and demographics, and combines that data with information about the home owners’ behavior. Think of EcoFactor’s software like Nest’s learning thermostat, but without the Nest hardware. EcoFactor is also working with Reliant Energy and Comcast and is backed by Aster Capital, Claremont Creek Ventures and RockPort Capital Partner.

EcoFactor is an example of the rise of startups using big data and machine learning to reduce energy usage.

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EcoFactor, founded in 2006 and launched in late 2009, has developed software that plugs in a lot of data about things like weather and demographics, and combines that data with information about the home owners’ behavior. EcoFactor uses these big data sets to tweak a home’s connected thermostat settings ever so slightly to shave off energy consumption, but also to maintain a comfortable temperature in the home.

Think of EcoFactor’s software a bit like Nest’s learning thermostat, but without the slick hardware. Customers can manually override the EcoFactor settings at any time.

Utilities are partnering with EcoFactor to run demand response programs, which is when utilities collectively reduce customers’ heating and cooling consumption at times of peak demand. Say it’s 4pm and the height of Summer and utilities can use EcoFactor’s software to cool customer’s homes (that have agreed to be in the program) at a slower rate. EcoFactor has sold its services to Reliant Energy. Other companies that sell similar energy analytics products, like Nest, and EnergyHub, are also working with Reliant and other utilities.

Broadband service providers, like cable companies, are also interested in these types of energy management services, and EcoFactor has partnered with Comcast and its Xfinity Home service. Selling energy management is a way that broadband service providers can use their networks to sell more services and attract new customers.

EcoFactor’s new funding comes from Aster Capital, and includes additional funding from existing investors Claremont Creek Ventures and RockPort Capital Partners.

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