Kelvin, a company specializing in intelligent HVAC (heating, ventilation, and air conditioning) solutions, has raised $30 million in Series A funding. The funds will be used to support the company’s growth and the development of its platform to reduce carbon emissions in existing buildings.
Kelvin, initially established as Radiator Labs in 2013, designs and installs HVAC systems that help buildings decarbonize and save costs without replacing existing systems prematurely. Their flagship product, Cozy, released in 2016, is a retrofit device that regulates the heat output of radiators. More recently, Kelvin has developed a customized heat pump to replace room air conditioners. Combined with Cozy, it creates a “hybrid electrification” system that significantly reduces the reliance on fossil fuels. According to Kelvin, using Cozy, the heat pump, and a thermal battery can achieve a 20% reduction in carbon emissions at only 20% of the cost.
Buildings are a major contributor to greenhouse gas emissions, and it is challenging to replace them due to their long lifespan. About 15% of global carbon emissions come from buildings, with heating and cooling accounting for around 35% of that. To tackle this issue, various initiatives have been launched, such as a proposed EU rule to make all new buildings net zero by 2030 and a significant plan by the Biden administration to reduce emissions from government buildings.
The Series A round was led by climate-focused venture capital firm 2150, with participation from the Schmidt Family Foundation, the Partnership Fund for NYC, and existing investors. The funding will be used to hire talent and develop a scalable platform to promote adopting economically and environmentally sustainable HVAC solutions worldwide.
Kelvin has expanded its offerings to include other decarbonized HVAC applications, such as heat pumps and thermal battery systems. These solutions enable legacy buildings to electrify a significant portion (up to 80%) of their heating needs at a fraction of the cost of complete electrification. Similar to their initial product, the Cozy, these solutions can be easily installed through a subscription agreement, making them accessible and affordable for buildings regardless of their access to capital.
The Cozy, Kelvin’s flagship product, is an insulated radiator cover that enhances heating efficiency by preventing overheating and fuel wastage. Installing Cozys throughout a building can lead to up to 45% lower heating costs, improved comfort for residents, and reduced building emissions. The Cozy is already installed in thousands of apartments across the northeastern United States and has undergone extensive validation by independent agencies.
Kelvin offers a subscription-based model that eliminates the need for upfront capital, making decarbonization accessible to all communities and driving the transition through financial incentives. Their solutions, including the Cozy, qualify for investment tax credits under the Inflation Reduction Act and other energy efficiency incentives from state and utility programs. This helps buildings comply with local emissions, energy efficiency, and electrification regulations, including New York City’s Local Law 97.
Since 2011, Kelvin has successfully sold over 15,000 intelligent HVAC solutions to a diverse range of customers, including universities, large real estate portfolios, cooperatives, city agencies, and housing authorities.
