Maximizing Energy Efficiency: Q&A with Parity’s Brad Pilgrim
Heating and cooling account for 10% of global electricity usage, and there is plenty of room for improvement given that most buildings with central cooling have antiquated systems that rely too heavily on manual adjustments, Brad Pilgrim, Founder & CEO of startup Parity, a company that has developed customized algorithms that use various metrics, including weather data, to build optimized control adjustments for building systems in real-time, told Connect Money.
The company recently closed a $19 million Series B funding round, which “validated and strengthened Parity’s reputation,” said Pilgrim, signaling confidence from investors in its ability to expand services, scale and continue to innovate.
CM: How did the idea of starting Parity come about?
BP: The idea came from a mixture of my own personal and professional experiences, and the timing of me and my co-founder [Brian MacLeod] meeting. After moving into a condo in Toronto, I was surprised to see significant fee increases. I understood that the building’s energy usage could be a place to start looking for solutions.
Coming from a prior startup in the solar industry in the U.S., I could see there was potentially a gap in the market where traditional tools were too expensive, and residential building staff found them difficult to use. While the alternative was larger equipment retrofits, they were simply not economically feasible.
Alongside my co-founder, who also had significant experience in the energy industry, we created Parity to be a simple service to implement the necessary controls on HVAC systems and save energy. Our solution evolved to focus on optimizing existing HVAC systems using engineering best principles and developing algorithms that could automate equipment control in real time.
Parity helps buildings maximize energy efficiency, reduce costs, and maintain occupant comfort without requiring costly upgrades or complicated tools. Our vision was to provide a practical and accessible solution that addresses the real challenges faced by building managers today.
CM: How does your service assist residential/commercial real estate owners and/or developers in increasing energy efficiency?
BP: Parity’s service increases energy efficiency and grid interaction through automated HVAC optimization and control. Our software continuously analyzes real-time data, such as outdoor weather conditions and occupant demand, and uses advanced algorithms to make precise control adjustments to match supply with demand. This ensures that HVAC systems only consume energy where and when it’s needed, minimizing waste and avoiding unnecessary heating or cooling and HVAC operation.
Our approach improves operational performance, reduces energy costs, and lowers CO2 emissions, which can help buildings avoid fines from building performance standards like Local Law 97 in NYC. We also provide continuous control of operations, monitoring and proactive maintenance, and detecting and resolving issues in real time before they escalate.
CM: How has your service been received in discussions with real estate owners and developers?
BP: We have had great success in our vertical – likely a hint at the demand for cost-effective solutions that help building owners and operators with energy efficiency. Industry and state and local governments have been quick to recognize the urgent need to enhance energy efficiency and reduce carbon emissions across cities and properties.
As a trusted partner to many of North America’s largest real estate owners, operators, and investors, Parity’s HVAC optimization service has demonstrated substantial value by delivering up to 30% or more in guaranteed utility cost savings. The cost-saving aspect of the solution is particularly appealing as utility rates rise and environmental regulations tighten.
A big plus among real estate professionals is that Parity integrates with existing control infrastructure, minimizing the need for new hardware, and offering a fully managed solution that takes daily HVAC management off the shoulders of building staff.
We recently closed a $19 million Series B funding round, which validated and strengthened Parity’s reputation, signaling confidence from investors like Idealist Capital in our ability to rapidly expand our services, scale and continue to innovate.
With proven energy savings across more than 70 million square feet of multifamily and hospitality real estate, Parity is a forward-thinking leader in the real estate sector. Its alignment with the industry’s move toward grid-interactive efficient buildings (GIEBs) and commitment to ongoing compliance with building performance standards has helped us build strong partnerships with operators looking to improve operational efficiency and sustainability.
CM: What is the average cost savings for residential and commercial building owners?
BP: Our technology has consistently achieved significant energy reductions across various properties. For example, a condo building in Toronto realized savings of $558,297 over five years, while a residential property in NYC saved $145,245 in energy savings in the first year.
These case studies show our capacity to deliver real financial benefits by optimizing energy usage, reducing consumption, and lowering utility costs. We back our approach with a unique guarantee: if we don’t meet our predicted energy savings, we pay the difference. We have this level of confidence because we have consistently achieved results across North America, demonstrating that our service can help building owners cut costs while also contributing to lower carbon emissions.
CM: Are there any government tax incentives for real estate operators and developers to install energy-efficient HVAC systems?
BP: State and local utilities have a variety of incentives available to help with the implementation costs of technologies like Parity.
Parity takes on the burden of building owners to navigate these programs directly and can procure them on their behalf so they can take advantage of them. Our Optimizer service integrates seamlessly with existing infrastructure to continuously optimize HVAC systems, reducing energy use and emissions, and thus minimizing the risk of fines under programs like LL97.
By aligning with these regulations and maximizing energy efficiency, building owners can take advantage of government incentives, avoid costly non-compliance fines, and achieve significant long-term cost savings, all while contributing to a more sustainable future.
CM: How has the HVAC industry transformed with the use of artificial intelligence (AI) technology?
BP: The HVAC industry has been significantly transformed by the adoption of artificial intelligence (AI) technology, which gives us advanced solutions for optimizing energy use, improving system performance, and enhancing indoor air quality. AI improves HVAC, allowing these systems to become more intelligent and adaptive by continuously analyzing vast amounts of data from various sources such as temperature, humidity, occupancy, weather, and energy tariffs. This makes dynamic optimization of heating, ventilation, and air conditioning possible, which reduces energy consumption while maintaining comfort levels.
AI-based predictive maintenance has revolutionized traditional practices, which often relied on fixed schedules or reactive repairs. With AI, HVAC systems can be monitored continuously, and algorithms can detect potential issues before they escalate into critical failures. This approach minimizes downtime, reduces maintenance costs, and prolongs equipment lifespan by allowing proactive interventions based on real-time data analysis.
At Parity, we use AI to deliver substantial energy savings in a non-intrusive manner. Their AI-driven, cloud-based solution integrates seamlessly with existing HVAC equipment, providing up to 30% to 40% energy savings without needing upfront capital investment. Parity’s approach contrasts with traditional retrofits, which often require significant equipment upgrades and disrupt building occupants.
