Munich-based startup Reshape Energy is taking a bold step towards accelerating the decarbonization of the built environment. Founded in May 2024, the company is led by a team with expertise in scaling energy businesses, including the German division of Octopus energy and energy price comparison platform Verivox. Reshape Energy is focusing on selling energy system upgrades to commercial real estate, targeting property owners with portfolios of buildings.

The startup's mission is timely, as carbon emissions from heating buildings significantly contribute to climate change. In Europe, there is considerable regulatory pressure being applied to building owners to carry out energy upgrades. However, accessing the specialist skills required to pull off these energy upgrade projects can slow momentum for installing low-carbon solutions.

Reshape Energy is hoping to alleviate this friction with a one-stop-shop model that covers all stages of a project, from initial assessments and determining what's needed, to installation of the new systems and ongoing servicing and maintenance. The startup also includes financing options for customers who want to spread the upfront cost of installing new energy systems.

According to CEO and co-founder Benjamin Stanzl, the biggest competitive threat to energy upgrades is the "do nothing" option. He attributes the slow pace of change to the systemic complexity of orchestrating various bits needed to successfully deliver projects, as well as a lack of trust in the construction sector. Stanzl believes that Reshape Energy's acquisition model, which involves buying existing companies in the sector, will help to unlock efficiencies of scale while leveraging trusted customer relationships.

The startup has already made some acquisitions to build out its offering, and a new €5 million funding round will be used to further expand its capabilities. Reshape Energy's approach is distinct from other players in the space, such as German startup Reneo, which involves buying up real estate to transform via modernizing its energy infrastructure. Stanzl argues that Reshape Energy's model is more capital-efficient, with lower capital requirements to spin up its business.

As the energy transition gains momentum, Reshape Energy is positioning itself as a key player in the decarbonization of commercial real estate. By taking a holistic approach to energy upgrades, the startup aims to accelerate the transition to lower-carbon forms of heat management, such as heat pumps and solar panels. With its sights set on expanding beyond the German market, Reshape Energy is poised to make a significant impact on the built environment.

In the context of Germany's energy upgrade startup boom, Reshape Energy's model stands out for its focus on commercial real estate and its integrated approach. As the sector continues to evolve, it will be interesting to see how Reshape Energy's strategy plays out and whether its approach can help to unlock the full potential of energy upgrades in commercial buildings.