Boulder, Colorado-based smart grid company Simple Energy is $900,000 better funded this week, thanks to a round of seed funding from a group of angel investors.

Simple Energy, a TechStars Boulder 2011 graduate, received the investments from several sources including David Calone, managing director of Jove Equity Partners; Dean Mathew, the former director of Duke Energy’s (News - Alert) VC arm; Bart Lorang, Brett Jackson and Five Mill Ventures, TechCrunch is reporting this morning. The investors were reportedly attracted to the company because of its innovative program of customer engagement.

Simple Energy says it will use the cash to further develop its product, add enhanced features and integration, and hire additional programmers. The company, which was founded last year and launched its first product this year, makes solutions that help utility providers better engage with their customers, and tools to help customers better understand their energy use and how to improve their conservation.

The company also engages in energy-saving incentive programs, and recently teamed up with San Diego Gas and Electric (SDG&E), says TechCrunch, to offer an energy-saving contest that will reward the best conservation-minded customers with real-world prizes, including an Apple (News - Alert) iPad and retail gift cards. To participate in the contest, SDG&E's customers are encouraged to compete with one another to see how can save the most energy by making changes to their homes like weather stripping, insulation, sealing leaks and using more efficient light bulbs as well as turning down the thermostat. Determination of energy savings over the three month contest period will be made by checking the customers' home smart meters.

At least one investor said that this kind of innovative program of customer engagement is what prompted his investment.

Calone said, “I’ve seen firsthand the need for utilities to successfully engage their customers in saving energy. And that is why we’re so excited to be a part of helping Simple Energy deliver its engaging solutions to utilities.”

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