Product Strategy Roadmap for Redaptive, Inc.

How do urban sustainability, product strategy, and cutting-edge software and hardware intersect? I'm about to give you all a closer look by focusing on how Local Laws 97 and 88 are shaking things up in my home — New York City. As a Product Management intern with Redaptive, I was tasked with positioning the company's granular electrical sub-metering technologies for success in a competitive NYC landscape that was being revamped by these two local laws. With everyone's attention turning towards the environment, these two laws have become major players in the game, slashing building emissions and cranking up energy efficiency. So, hang tight as I walk you through the journey of cooking up a killer product strategy, all seasoned with some serious market research on LL97 and LL88. These rules aren't just giving the city skyline a new look, they're also dishing out a golden opportunity for businesses to step up their sustainability game and ride the wave of change in this fast-paced market. Let's get into it!

What are Local Laws 97 and 88?

Let's get some background on these new local laws and why they are so important to not just clean-tech companies, but any portfolio owner with real estate in NYC.

Local Law 97 (LL97)

Local Law 97 is a groundbreaking regulation in New York City aimed at curbing carbon emissions and enhancing the city's overall environmental sustainability. Introduced as part of the city's Climate Mobilization Act in 2019, LL97 mandates stringent emissions caps for buildings over 25,000 square feet, including residential, commercial, and industrial structures. These caps are based on the building's occupancy class and size, with different limits for each category. Starting in 2024, buildings exceeding their designated emission limits will be subject to substantial fines. The law pushes for a significant reduction in greenhouse gas emissions, compelling property owners to implement energy-efficient upgrades, adopt renewable energy sources, and improve overall building performance. LL97 not only addresses the critical issue of climate change but also encourages the construction industry and property owners to take tangible steps towards a "greener, more sustainable future" for New York City.

Local Law 88 (LL88)

Similarly, Local Law 88 is a pivotal piece of legislation in New York City's pursuit of energy efficiency and sustainability. Enacted as part of the "Greener, Greater Buildings Plan", LL88 focuses on lighting upgrades in commercial buildings. This law mandates that non-residential spaces of 25,000 square feet or more undergo lighting system improvements to meet energy-efficient standards. By January 1, 2025, these buildings must upgrade their lighting systems to meet the New York City Energy Conservation Code, ensuring reduced energy consumption and operational costs. LL88 contributes significantly to the city's broader goal of minimizing its environmental footprint and aligns with the larger sustainability initiatives in urban development. The law not only benefits building owners by reducing electricity expenses but also plays a pivotal role in lowering the city's overall energy usage and greenhouse gas emissions.

What does this mean for Redaptive and its clients?

Redaptive is positioned uniquely as a truly viable options not for single-building owners, but companies with large real estate portfolios. The whole appeal of Redaptive sub-metering was its streamlined portfolio-wide coverage and data collection/analysis in a granular fashion that went far past their competitors. By helping portfolio owners understand where upgrades could be made and providing such upgrades throughout portfolios, Redaptive created a strong foothold in groups such as REITs and large corporations, whose electrical systems are so large that it makes more sense to upgrade everything at once rather than one at a time. They solidified this foothold with their Energy-as-a-Service (EAAS) product offering, which helped cut costs even more by having Redaptive pick up the costs and only take revenue from the total energy savings in the long run. Now, with these new Local Laws, any group with large amounts of real estate in NYC are compelled to look for upgrades sooner rather than later, and since NYC real estate is more often owned by large groups rather than smaller landlords, Redaptive has the opportunity to take over the NYC market.

The Product Strategy Vision

My approach for Redaptive's strategic direction revolved around three key focus areas that I identified as crucial for the company's growth:

Specific Coverage for Local Laws 88 and 97:

I began by assessing the feasibility of implementing Redaptive sub-meters to achieve compliance with Local Laws 88 and 97. These laws affected the same property owners – those with buildings over 25,000 sq. ft. or multiple properties exceeding 50,000+ sq. ft. within the same tax lot or ownership group. With a significant number of buildings falling within this category in NYC, including 24,143 individual structures, the market potential for energy solutions providers like Redaptive was substantial. By merging public NYC energy data and existing Redaptive sub-meter data through Python-based data analysis, I narrowed down the ideal target range for Redaptive: buildings ranging from 25,000 to 75,000 sq. ft. Several factors supported this decision:

• Redaptive's sub-meters were optimized for smaller buildings under 100,000 sq. ft.

• Existing clients demonstrated a preference for buildings between 50,000 and 75,000 sq. ft., such as retailers like Gap and real estate funds like Duke Realty, which encompassed diverse property types.

• NYC's landscape was rich with these building owners, aligning perfectly with the chosen target range.

Participation in NYSERDA Program and Energy Upgrade:

To address the upfront cost concerns associated with Redaptive sub-meters for LL88 compliance (which mandated meters for every 5,000 sq. ft. space), I delved into Redaptive's Energy-as-a-Service product offering and the NYSERDA cost-sharing initiative. Despite the higher initial investment, Redaptive's lower sum-of-parts cost, coupled with the cost-sharing program and Energy-as-a-Service approach, mitigated this challenge. The key advantages of opting for Redaptive sub-meters included their advanced technology, facilitating granular measurements tailored to specific needs. This not only personalized the energy experience for property owners but also extended equipment lifecycles through the Redaptive Energy Solutions platform, allowing targeted technological upgrades.

Expansion into Redaptive Capital Solutions:

Building on Redaptive's current Energy-as-a-Service offering, I proposed an expansion into a Capital Solutions offering named Redaptive Capital. This innovation would leverage their established expertise and capitalize on the growing market demand for comprehensive energy solutions. By diversifying their portfolio, Redaptive could tap into a wider array of potential customers and provide a more comprehensive suite of services to meet varying needs.

In terms of strategy execution:

• Target Customer Segments: Drawing from Redaptive's successful track record, I identified the core customer segments: retailers, real estate funds, and additionally, college and university systems. These groups were attracted to Redaptive's solutions due to their ownership of medium-sized properties and their commitment to meeting sustainability goals.

• Product Rollout Timeline: Given Redaptive's well-established product and sales framework, the product rollout timeline was straightforward. It involved gradually ramping up sales efforts as the compliance deadline for 2025 approached. Furthermore, the expansion of the Local Laws' coverage to 70% of NYC buildings by 2030 would provide Redaptive with sustained growth opportunities in the years ahead.

By strategically addressing the specific coverage for Local Laws 88 and 97, enhancing participation in NYSERDA's program, and introducing the innovative Redaptive Capital Solutions, my approach aimed to position Redaptive as a leader in the energy solutions market while ensuring growth and relevance in the face of evolving regulatory and market dynamics.

Empowering Redaptive: NYSERDA Cost-Sharing Program

In my strategic exploration for Redaptive's growth, one pivotal facet that emerged was the New York State Energy Research and Development Authority's (NYSERDA) cost-sharing energy upgrade program. This program, with its unique potential, played a significant role in shaping the direction of Redaptive's path forward.

The NYSERDA program came into focus as a potent solution to address the initial cost hurdle associated with Redaptive's sub-meters for compliance with Local Laws 88 and 97. These laws mandated sub-meters for every 5,000 sq. ft. of space, and while Redaptive's cutting-edge technology promised advanced benefits, the upfront investment was a concern for potential clients.

In partnership with the sales, finance, and executive teams, I initiated a comprehensive exploration of the NYSERDA program's advantages and how it aligned seamlessly with Redaptive's vision. The program's cost-sharing model, which effectively eased the financial burden on building owners, resonated with our overarching goal of providing comprehensive, sustainable solutions. By participating in this program, Redaptive could alleviate the immediate budget constraints that were otherwise deterring potential clients from adopting our technology.

Collaborating closely with the sales team, I highlighted the program's significance as a competitive edge. It bolstered our offerings with an attractive financial aspect, positioning us as an accessible and supportive partner for businesses seeking sustainable solutions.

The finance team's meticulous evaluation indicated that while Redaptive sub-meters did carry higher upfront costs, the overall cost structure was more favorable than many alternatives. By factoring in the NYSERDA cost-sharing, Redaptive's proposition became even more appealing. This not only made us a more attractive choice for potential clients but also strengthened our financial outlook.

Engaging with the executive team, I underscored the strategic importance of aligning with NYSERDA's vision, which mirrored Redaptive's commitment to sustainable energy transformation. This alignment provided not only financial benefits but also positioned us as a responsible corporate citizen contributing to the broader energy transition.

Ultimately, by embracing the NYSERDA cost-sharing program, Redaptive solidified its place as a forward-looking industry player. This collaboration not only addressed immediate cost concerns but also underscored our dedication to pioneering innovative, sustainable solutions that create enduring value for both clients and the environment. Together with NYSERDA, Redaptive embarked on a journey that transcended individual business goals, contributing to a greener, more energy-efficient future for all.

Redaptive Capital

As the strategic framework for Redaptive's growth continued to take shape, a particularly exciting avenue emerged: the development of Redaptive Capital Solutions. This innovative addition to our portfolio was meticulously crafted to address diverse energy needs and extend our reach to a wider spectrum of customers, aligning seamlessly with our mission of propelling sustainable energy transformation.

Drawing inspiration from the foundational pillars of Redaptive's ethos, I collaborated closely with the product development, marketing, and executive teams to bring this visionary concept to life.

A Comprehensive Approach to Energy Transformation

Redaptive Capital Solutions captured our vision of comprehensive, end-to-end energy upgrades in a single, integrated package. This initiative showcased a holistic approach that aligned with Redaptive's reputation for excellence. We envisioned a journey that started with in-depth energy assessments, delving into the heart of a building's energy consumption. From there, strategic planning and execution would follow, creating a tailored roadmap for optimizing energy efficiency and building performance.

A Holistic Perspective on Energy Services:

The strategy for Redaptive Capital Solutions was not limited to energy services; it embraced a holistic perspective. The aim was to optimize every facet of a building's operation, ensuring that energy efficiency improvements were seamlessly integrated with broader operational enhancements. By addressing multiple aspects of building functionality, we aimed to enhance the overall value and sustainability of properties.

Empowering Sustainability Initiatives:

Central to the strategy was empowering organizations with ambitious sustainability goals. We envisioned Redaptive Capital Solutions as a catalyst for transformation, supporting those seeking to achieve large-scale sustainability enhancements. The solutions were adaptable and could be tailored to a variety of sectors and property types, making it accessible to organizations with diverse portfolios and priorities.

Overall Execution:

Collaborating with the marketing team, I witnessed the articulation of this innovative offering in a way that echoed Redaptive's values and mission. The strategy behind Redaptive Capital Solutions was a testament to our unwavering dedication to transformational energy solutions. By embracing comprehensive energy upgrades, optimizing building performance, and empowering sustainability goals, Redaptive Capital Solutions was poised to reshape the industry landscape, reflecting our continuous commitment to innovation and sustainable progress.

As Redaptive ventured into uncharted territory with this exciting product offering, it was clear that the strategy behind Redaptive Capital Solutions mirrored the company's ethos: delivering enduring value and shaping a future that prioritizes sustainability and efficiency.

Project Takeaways

Navigating the intricate interplay of urban sustainability, product strategy, and cutting-edge technology has been an eye-opening journey during my tenure as a Product Management intern at Redaptive. Engaged in the dynamic landscape of New York City, the convergence of Local Laws 97 and 88 has ignited transformative change, and I'm thrilled to share the key takeaways from this immersive experience.

Learning at the Nexus of Innovation and Regulation:

My time at Redaptive afforded me an invaluable education at the crossroads of innovation and regulation. Understanding the complex intricacies of Local Laws 97 and 88 wasn't just about compliance; it was about envisioning a sustainable future that balances energy efficiency and environmental responsibility. As these laws shook up the city's skyline, I learned firsthand the pivotal role that forward-thinking companies can play in driving change by aligning products with evolving regulations.

Unveiling the Power of Market Research:

Exploring the pulse of the New York City market through intensive research exposed the true potential of Redaptive's granular electrical sub-metering technologies. This deep dive enabled me to precisely pinpoint the buildings that could benefit most from our solutions – those ranging from 25,000 to 75,000 sq. ft. Uniting public energy data and Redaptive's proprietary insights through Python-based analysis was an illuminating experience, unveiling a goldmine of opportunities and guiding our strategic approach.

Empowering Sustainability Through Collaboration:

Collaborating with the sales, finance, and executive teams to integrate Redaptive into the NYSERDA cost-sharing program was a revelation. The alignment of this initiative with our mission marked a pivotal turning point. It showcased how organizations, by harnessing innovative strategies, can not only overcome financial barriers but also foster a culture of sustainability. This experience underscored that being part of a collective movement towards greener practices brings more than just financial benefits; it also strengthens the brand's commitment to a better world.

Crafting Vision with Strategic Innovation:

Developing the strategy for Redaptive Capital Solutions was a transformative experience. It epitomized the company's dedication to comprehensive transformation by delivering end-to-end energy upgrades. I was fortunate to work alongside talented professionals to shape a holistic approach that encompassed in-depth energy assessments, tailored strategies, and sustainable execution. This process reinforced my belief that innovative product strategy isn't just about responding to market demands – it's about crafting a vision that propels industries forward.

A Path Paved in Sustainability:

My journey at Redaptive has cemented Product Management as my preferred career path. The opportunity to spearhead strategies that intertwine technology, sustainability, and market dynamics has been unparalleled. Witnessing how a well-crafted product strategy can not only drive business growth but also contribute to a more sustainable world has solidified my commitment to this field. As I move forward, I'm excited to channel these experiences into creating innovative solutions that harness the power of technology to address pressing global challenges.

In conclusion, my time at Redaptive has been nothing short of transformative. Through a fusion of urban sustainability, product strategy, and cutting-edge innovation, I've gained insights that will undoubtedly shape my professional journey. The intersection of innovative technology and a sustainable future is where I want to be, and I'm grateful for the opportunities Redaptive has provided in leading me to this rewarding path in Product Management.