Smart energy meter start up Onzo has today announced that it has secured £2m in funding from energy giant Scottish and Southern (SSE) and investment firm Sigma Capital Group and pledged to begin production of its energy display units by the autumn.
Under the deal, SSE and Sigma are to invest £1m each in the company to fund the final phase of the development process and will both provide non executive directors who will join Onzo's board. SSE has also placed initial orders worth more than £7m for Onzo's energy display products and data services and has secured exclusive rights to provide the technology to its customers in the UK and Ireland.
Onzo's technology provides users with a display unit featuring real-time information on their property's energy use as well as detailed long-term energy use data that can be delivered through their quarterly bills or accessed online.
Onzo chief executive Joel Hagan said that the technology differed from existing real-time energy meters as it features complex algorithms that analyse energy use patterns and provide users with detailed information on which electrical appliances are using the most energy and at which times.
"The algorithms mean it is capable of providing information on energy use down to the appliance level and can also give you that information in terms of energy used, carbon emissions generated or financial cost," he explained. "It is a really cost-effective means of getting the information because the only alternative is to install meters on each appliance."
Hagan added that evidence from small-scale customer trials showed that smart meters can curb energy use by around a quarter.
The company will initially focus on installing the technology for domestic customers, but Hagan said that unmodified versions of the meters would work just as effectively for small businesses.
David Gardner, head of ventures at SSE, said that energy giant hoped the exclusive deal with Onzo would give it an edge over its rivals.
"Energy customers have a growing expectation that their supplier will provide new ways to help them reduce their energy consumption, and in the future this could become an important service differentiator," he said.
