Portfolio Highlight: Harvest Thermal
For 15 years, VertueLab has provided funding and holistic support to startups at every stage of their journey in our shared fight against climate change. We’ve had the honor of helping accelerate countless climate technologies from ideation to community deployment through our funds while connecting directly with the entrepreneurs behind the magic. Join us as we take a deeper dive into VertueLab’s portfolio, speaking directly with our supported startups to hear more about their stories and awe-inspiring technologies.
In this installment of our Portfolio Highlight series, we take a closer look at Climate Impact Fund portfolio company, Harvest Thermal, a company on a mission to provide the cheapest, cleanest electricity possible to fight climate change without sacrificing superior comfort. Keep reading below to find out more about our chat with Founder and Chief Executive Officer, Jane Melia.
About Harvest Thermal
When it comes to fighting climate change, Harvest Thermal is starting at home - literally. Heating and hot water typically accounts for a whopping two-thirds of home energy usage, and when powered by methane gas, it becomes the single largest source of carbon emission for a household. Harvest Thermal addresses this with their innovative Harvest System, which utilizes a heat pump, thermal battery, and smart controller to slash carbon, lower monthly heating bills, and support a fully renewable grid.
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VERTUELAB: What first inspired you to start Harvest Thermal? What specific problems does Harvest Thermal solve for?
MELIA: When my gas furnace was about to die, I looked at all-electric options and wasn’t satisfied. I wanted something that would reduce emissions, be cheaper to operate, and be good for a 100% clean energy grid - and my husband Pierre Delforge, who is an energy expert, was fully on board. We pulled together a team of talented and motivated people who understood the potential for thermal battery storage to meet those conditions. And we got to work. Over time we unlocked the right software and physical controls and the Harvest Pod® was born.
Jane Melia, Founder & Chief Executive Officer of Harvest Thermal
How is Harvest Thermal tackling these problems differently?
Our Pod manages a single heat pump for both heating and hot water. Its smart controls operate the heat pump mostly during the day when clean renewable electricity is cheap and plentiful on the grid. And distributes stored heat and hot water whenever people need it – typically in the evenings and mornings. Our system cuts emissions by 90% and lowers energy costs by 30% on average. The lifetime emissions reduction benefit of a Harvest system is about the same as replacing a gas car with an EV.
The Harvest Pod
What were some unique challenges you faced as an entrepreneur while starting Harvest Thermal?
Harvest’s system is all about the controls and software that manage the thermal battery, optimize performance and respond proactively to the needs of the user and grid. However, we do ship a physical device, our Pod. And that scares many investors who prefer to avoid investing in physical products– even in the climate space which is a bit crazy since solving the climate crisis means changing infrastructure. But beyond that, there was kind of a malaise around the built environment. While transportation and more recently “hard to abate’ industrial emissions get a lot of attention, buildings, which are on par with transportation in terms of US emissions, were not getting so much visibility - at least in the early days. Fortunately, with initiatives such as the Inflation Reduction Act helping to drive a transition away from fossil fuels, that is now changing.
Our thesis is strong. By tackling heating and hot water which account for ⅔ of home energy use, we take a massive bite out of residential emissions. And our smart thermal battery™ is easily scalable. Every home needs a heating system: we have a TAM of tens of billions of dollars globally and enormous tailwinds from policy and incentives. California alone has a goal of installing 6 million heat pumps by 2030. We earned the support of visionary angel investors as well as climate VCs helping us deliver on this enormous opportunity.
“This is the golden age of electrification with enormous headroom for innovation and growth.”
How were you first connected with VertueLab, and how has partnered with VertueLab changed things for Harvest Thermal?
Ken Vaugh heard me pitch to the E8 Angels group, with which VertueLab has a collaboration. He reached out and the rest, as they say, is history! More broadly, VertueLab has a rigorous and well-thought-out diligence process, with particular attention to measuring key core values of impact and inclusivity. Working with VertueLab helped us develop the tools to demonstrate our performance in these areas - such as a carbon impact calculator that we have been able to use with other partners and investors. This is an example of how VertueLab’s investment was catalytic in helping Harvest grow, attract more investors and continue in a virtuous cycle.
The Harvest Thermal team
What is ahead for Harvest Thermal?
Product development: Since we launched commercially nearly two years ago we’ve added cooling, released our Gen3 Pod and reduced our manufacturing costs. We enabled two-way communication with the grid to support future revenue streams from demand flexibility. We are included in California’s building code compliance software, making meeting code easier for home builders and remodelers. And will be introducing a consumer app in 2024.
Traction: Traction is strong. We’ve sold over 140 systems and will soon be piloting a system with a large home builder that is a leader in sustainable homes. We’ve attracted veteran senior staff most recently from Daikin North America and Google who are critically building our direct sales contractor network and brand respectively. We’ve won numerous awards. I am especially proud of the recognition from technical experts like the Consortium of Energy Efficiency and NREL’s Industry Growth Forum.
Market Growth: We’ve expanded our sales territory from a small footprint in the SF Bay area to an area that goes from Santa Barbara to Vancouver. We have an ambitious sales goal for 2024 and expect to have new home developers, and low- to moderate-income projects underway and expand to extremely cold temperature climates within 24 months.
Any closing thoughts?
This is the golden age of electrification with enormous headroom for innovation and growth. I’m proud of what my team has delivered and am super-excited to be part of the building decarbonization movement.
Thanks for joining us for this edition of Portfolio Highlights! You can find out more about Harvest Thermal and their system here. Stay tuned for our next installment!
