PROJECT EASY GREEN

Last month Michael Kanellos unearthed the founding of Nest Labs, a stealthy home networking technology firm with an Apple iPhone lineage. We just received an anonymous tip with some more information.

The leader of the firm is listed as Tony Fadell, the father of Apple's iPod and a contributor to the iPhone. Fadell's most recent LinkedIn role lists him as advisor to the CEO at Apple. Fadell had expressed an interest in greentech in the past. Another listed staff member, Yoky Matsuoka, is VP of Efficiency Algorithms, according to this 2010 document. Erik Charlton is the former VP of pointing devices (mice) at Logitech.

According to Michael's article, the Palo Alto, California-based startup has raised VC funds to bring smart thermostats and other home networking technology to consumers. One source described the company's valuation as "very high." Kanellos suspects that Kleiner Perkins partner Trae Vassallo, who is described as currently working closely with "the management team of Stealth Efficiency Co., a new consumer efficiency company coming to residences soon," is working with Nest Labs.

The company, according to trademark filings, is creating a: [C]limate control system consisting of a digital thermostat that automatically sets climate conditions based on prior and historical patterns of climate settings selected by users; climate control system consisting of a digital thermostat that can be controlled wirelessly from a remote location; software application for use on computers and hand-held devices to control climate and energy usage in homes and businesses from a remote location.

That sounds a lot like EcoFactor, a company we've covered on numerous occasions.

The system will also include the capability for the "creation and transmission of messages and incentives to energy users to reduce their energy use."

This certainly fires a shot over the bow of Opower, Tendril, and EcoFactor. Does anyone remember the names of any MP3 players before Apple obliterated the field with the iPod?

As Kanellos said, "The success of things like the iPhone also demonstrates that Apple understands how to sell status symbols to people, particularly people who pretend to disdain status symbols. Getting consumers to pay for home energy management systems has been one of the chronic problems in the industry. These systems can cost $300 or more. Many companies now believe that the only way to get these in homes is to get demand response providers, utilities or communications carriers to subsidize them. Stick a 'this product was designed in part by a guy who once worked at Apple' sticker on there and you'll have a line around the block in Palo Alto."

Nonetheless, it won't be easy. Consumers, even the rabid early adopters that may hone in on Nest because of its heritage, have shown very little interest in any HAN products. Microsoft just killed off its Home Energy Management product, Hohm, because of less-than-overwhelming response. That came shortly after Google killed its version of same, the Powermeter, once touted by Google's astronaut-in-residence.

Homes consume approximately 20 percent of all the energy in the U.S. and a good portion of that power is consumed inefficiently.

VCs have invested enormous sums in a variety of Home Energy Networking firms to address that inefficiency.  Intel Capital, Kleiner Perkins, Comcast Ventures, and Rogers Communications have invested more than $100 million in startup iControl, a home automation and energy management firm. That firm joins a long list of energy dashboard and home energy management startups, including Tendril, Control4, Onzo, Passiv Systems, Energy Hub, etc.

Maybe the ex-Apple folks at Nest Labs can bring some consumer allure to this so far less-than-enthralling application.