Peak Efficiency is an HVAC control company that uses evaporative cooling to boost the efficiency of air conditioning units (mostly in large office buildings, data centers, or similar structures in the Los Angeles basin). Recently, Peak Efficiency was selected for a Southern California Edison (SCE) energy efficiency PPA which will subsidize approximately 95% of project costs over a 72MW deployment contract. Generate purchased this SCE contract through a SPV and Evaporcool (an evaporative cooling market leader) bought Peak’s intellectual property, subsequently dissolving Peak Efficiency. Since the SCE payment will subsidize nearly 100% of the capital costs, the revenue coming from the customer payments is expected to be nearly all profit.
- $2.5M investment
- 20% IRR unlevered
- 2-year payback period
- $15M contracted pipeline
