Evolve Energy

Evolve Energy was established in 2018 by tech entrepreneur Michael Lee, who brought a decade of experience in the renewable energy sector to the venture. His background includes financing early-stage battery, wind, and solar projects, as well as earning an MBA from Harvard Business School. Lee identified a market inefficiency where the declining costs of renewable energy weren't translating to lower prices for consumers, leading to the creation of Evolve Energy to bridge this gap.

The company operates in the deregulated energy market of Texas, functioning as a retail electricity provider for residential customers. Its business model is centered on a monthly subscription, which gives customers access to electricity at wholesale prices. This direct access to fluctuating wholesale rates, which are often lower when renewable energy sources like wind and solar are abundant, forms the core of the company's value proposition. Revenue is generated through this $10 monthly service fee rather than a markup on energy consumption.

Evolve Energy's core product is an energy optimization platform that utilizes artificial intelligence and machine learning. This platform connects with customers' smart home and Internet of Things (IoT) devices, such as smart thermostats, electric vehicles, and battery storage systems. The system automates energy consumption, shifting usage to times when wholesale electricity prices are at their lowest—often when the grid has a surplus of renewable energy. This allows customers to reduce their electricity bills and decrease their carbon footprint simultaneously. The service is offered on a pay-as-you-go basis without long-term contracts or early termination fees.

The startup gained early traction through participation in accelerator programs, including one backed by MINI and URBAN-X, and by winning the 2019 EarthX startup competition, which led to investment from Capital Factory. In September 2020, UK-based energy technology company Octopus Energy acquired Evolve Energy for $5 million as a key part of its $100 million investment strategy to enter the U.S. market, starting with Texas. Following the acquisition, the business was rebranded as Octopus Energy US, and Michael Lee transitioned to the role of CEO for the US operations.

Keywords: wholesale electricity, energy optimization, AI energy platform, smart home integration, IoT energy management, retail electricity provider, subscription energy, Texas electricity market, Michael Lee, renewable energy savings, smart thermostat optimization, EV charging optimization, pay-as-you-go electricity, Octopus Energy US, cleantech, energy tech, residential energy, dynamic pricing, carbon footprint reduction, automated energy management