Reservoir Raises $8M for an AI-Powered Heat Pump Water Heater That Saves Energy, Detects Leaks, and Stabilizes the Grid

Who founded Reservoir? The company was founded by three people . Luke Winston-Almanzar, former chief business officer at Formlabs (the large 3D printing company), is joined by Gabriel Parisi-Amon and Jake Felser.

How the Predictive Heat Pump Water Heater Works

Reservoir's unit is a heat pump water heater, which is roughly 4x more efficient than electric resistance and 5x more efficient than gas . The key innovation is the predictive AI software that controls it.

Predictive energy savings. The system spends about a month learning each household's hot water usage patterns . Instead of reacting only to tank temperature, it preheats the water when electricity is cheapest and cleanest, typically overnight or during low grid demand . This can save homeowners a projected $800–$1,000 per year on energy bills .

Instant hot water and 'Party Mode.' The Max model's 50-gallon tank can deliver up to 150 gallons of hot water in 'Party Mode' — configurable via a touchscreen on the unit or through the Reservoir mobile app .

Leak detection and auto shutoff. The system monitors plumbing throughout the home for leaks and frozen pipes, sending real-time alerts and featuring an auto-shutoff capability .

Grid-scale energy storage. Each Reservoir water heater can act as a thermal battery. A network of these units stores megawatt-hours of energy as hot water, then shifts or reduces electricity draw during peak grid demand, helping to stabilize the grid .

Pricing, Models & Warranty

Both prices are all-inclusive — no surprise contractor fees . The units come with a 10-year warranty . In Massachusetts, the heater qualifies for the Mass Save $750 rebate on ENERGY STAR-certified heat pump water heaters . Income-qualified households may get the unit installed for free .

Strategy: Operating Its Own Plumbing Company

Rather than selling through distributors or independent contractors, Reservoir started its own in-house plumbing company . Co-founder Luke Winston-Almanzar told TechCrunch that the decision was inspired by his experience at Formlabs: "distributors weren't embracing the new technology" in many cases .

Owning installation lets Reservoir control quality, simplify pricing, speed up the sales process, and build direct customer relationships . The company currently serves Massachusetts, southern New Hampshire, and southern Maine .

How It Competes on Price

Standard heat pump water heaters (e.g., Rheem ProTerra) retail for roughly $1,600–$2,400 before installation, which typically adds $500–$1,500 . A conventional gas water heater runs about $800–$1,500 installed. Reservoir's $5,000–$6,500 all-in price is significantly higher upfront than traditional options. The company argues that the ~$1,000/year energy savings and the $750 Mass Save rebate narrow the effective cost gap considerably, and that predictive shifting to off-peak electricity rates provides additional savings over time .