1Climate: Using AI to Streamline the Clean Energy Project Development Process

1Climate Fast Facts

Headquarters

New York, NY

Product

1Climate's platform simplifies clean energy permitting and incentive processes by providing updated data and automating filing. We help developers qualify leads faster and enter new markets. Their AI automates permit filing and incentive applications, making projects more efficient and cost-effective. 1Climate also streamlines legal processes by generating development contracts, ensuring transparency and standardization for financing. They assist developers in monetizing tax credits reliably. Unlike other tools limited to specific tasks, 1Climate integrate across various verticals to offer a comprehensive solution. Thier goal is to bring AI and automation to all aspects of clean energy development.

Funding

1Climate has been bootstrapped so far. They are currently raising a $1.5M Pre-Seed round.

Team

Co-founder: Kyle Arjun Patel

• MBA @ MIT

• Built strong relationships with AI-focused faculty members

• Prev. at NASA, Google, Rhino Health, CommandBar

• Was an AI researcher, software engineer, and product manager, playing instrumental roles in building and launching conversational AI and language AI-based systems

Co-founder: Kevin Diau

• MS in Renewable Energy & Policy @ Stanford

• Worked on deploying clean energy solutions in the US and across Sub-Saharan Africa

• Began his career leading sales analytics and policy at Geli, an energy storage software startup

• Focuses on using policy to accelerate clean energy project deployments, including working at the International Finance Corporation (World Bank Group) to de-risk solar + storage PPAs

Business Model

1Climate operates on a business model where it offers subscription services to project developers in the B2B sector. These services include assistance with initiating and managing projects, along with a fee based on successful validation and monetization of tax credits.

Subscribing project developers gain access to an AI-powered platform that simplifies complex regulatory information. This platform consolidates data from various areas such as grid congestion, local permits, and site evaluations using GIS technology. With the help of the 1Climate platform, developers can analyze potential issues in their projects quickly and confidently.

Since it's a Software as a Service (SaaS) product, the company's economic model benefits from the ability to serve more customers and expand into new markets. By improving software integrations and compatibility with existing developer tools, 1Climate aims to work closely with channel partners to reduce the cost of acquiring customers and establish its platform as a key player in the clean energy developer software market.

Market Opportunity

The opportunity for 1Climate lies in the booming market of clean energy development, where soft costs - especially regulatory and permitting expenses - are becoming a significant portion of overall project costs. These soft costs are expected to surpass $40 billion annually by the end of the decade, driven by federal policies and incentives totaling around $1.2 trillion. Their solution addresses this challenge by offering an AI-powered platform that simplifies regulatory complexities, speeding up project development and reducing costs. Unlike traditional consultants who provide static reports at high prices, our platform continuously updates regulatory data across various jurisdictions, saving developers time and money. By streamlining processes and ensuring ongoing compliance with changing regulations, 1Climate empowers developers to grow faster and explore new markets with confidence.

Traction

• 1Climate has several key strategic partners and stakeholders helping them build from 0 to 1

• Currently engaged in 7 paid pilot projects across California, working with a project developer to build customer-sited solar, energy storage, and EV charging stations at a series of commercial properties

• Have several large clean energy developers in their pipeline who have provided letters of support and are eager to utilize their platform once the MVP is launched in early 2024

• Participation in accelerator programs: Village Capital's Sustainability Subscribed, Stanford's StartX, Harvard Climate Circle, and Harvard’s Innovation Labs has enabled us to further validate our product and business model with industry leaders

• 1Climate team has received support from National Renewable Energy Laboratory (NREL) and the US Department of Energy (DoE) as a Solar Prize grant winner

Why Now?

Recent climate laws like the IRA, coupled with falling costs of solar and energy storage, have triggered a surge in investment for clean energy projects. But to capitalize on this momentum, we need innovative solutions that simplify energy regulations and reduce project costs. 1Climate's platform harnesses advanced AI technology to tackle these challenges. By training AI models to understand and process regulatory data, we organize vast amounts of information, making it easy for developers to assess project viability. These tools can also automate tasks like filing incentives and permits and handling tax credits. With our expertise in clean energy, AI, and regulations, 1Climate is uniquely positioned to streamline project development. Backed by experience in building and launching software products, their team is committed to driving the transition to a net-zero future.

Climate Impact

The US energy industry grapples with daunting regulatory hurdles hindering the transition to clean energy. Energy developers struggle to keep pace with over 2,500 clean energy programs, leading to project delays. Complex permitting processes across federal, state, and local levels drive up soft costs, impeding progress toward climate goals. Developers face bureaucratic red tape, slowing down clean energy deployment despite efforts like the Inflation Reduction Act. Deciphering IRS and Treasury guidelines adds further complexity. These challenges inflate soft costs, surpassing 50% of total project expenses, with solar alone costing customers $26 billion in 2021. 1Climate addresses these barriers by simplifying the development process, enabling faster and more cost-effective clean energy projects, crucial for industry growth and market expansion.

Support 1Climate

Investors: 1Climate is raising a $1.5M Pre-Seed round and looking to connect with investors

Fractional Talent: 1Climate is looking for fractional talent help in data/ML, finance, engineering, Cos/EA.

Fundraising Help - 1Climate is looking to connect with anyone who has experience fundraising for similar startups

Climate Tech Funding

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Preliminary Insights Q1 2024

Compared to the rally of 2021 and 2022, 2023 was a rather muted year for climate tech. A combination of global macroeconomic headwinds and market corrections resulted in a so-called “funding winter”, not only for climate tech but also for overall tech. Will the patterns we observed in Q1 2024 signal a trend reversal for climate tech?

Here’s what Net Zero Insights found:

• 🚀 Funding hits a historic quarterly high, spurred by outliers

• 💵 Non-dilutive capital continues to play a major role in physical breakthrough and adoption solutions

• 🛠 The capital utilization rhythm continues

Subscribe to Net Zero Insights’ newsletter to be the first one to explore the entire report when it goes live.

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