While most energy storage companies seek vast tracts of land near major grid connections, Base Power is betting on a decentralized approach: installing batteries in residential backyards. The strategy appears to be paying off, with the startup deploying over 500 megawatt-hours (MWh) of storage in recent years. Today, the company announced an additional $1 billion in funding, less than a year after its previous billion-dollar round.
The Series D round values Base Power at a $13 billion post-money valuation. The company is currently installing approximately 100 batteries per day, equating to about 8 MWh of storage, and aims to double that rate by the end of the year. This rapid scaling reflects growing demand for distributed energy resources as grid strain intensifies.
New Base Core Battery Unveiled
Base Power also introduced its latest home battery, the Base Core, manufactured at its Austin, Texas facility. The device stores 39.2 kilowatt-hours (kWh) of electricity—significantly more than competitor offerings. Customers can opt for one or two batteries, providing substantial backup capacity. Base Power operates in Texas and Illinois, with portions of Illinois falling under PJM's grid territory.
Why Now: Surging Electricity Demand
The round comes amid skyrocketing electricity demand driven by economy-wide electrification and the rapid expansion of AI data centers. After decades of stagnation, the U.S. grid is expanding, but supply is struggling to keep pace. PJM, which hosts numerous data centers, has faced notable strain, and utilities are seeking innovative solutions. Base Power's model—deploying batteries at the edge of the grid—offers a nimble alternative to large-scale infrastructure projects, helping to alleviate local bottlenecks.
Subscription Model and Grid Services
Unlike most home battery installers, which charge thousands upfront, Base Power uses a subscription model. For instance, in the Houston area, customers pay $695 for installation, $19 per month, and 13.1 cents per kWh for electricity—competitive with regional rates. Base Power retains ownership of the batteries and sells stored electricity back to the grid during peak demand periods, a service that can yield substantial returns. In regulated markets, the company collaborates with utilities to place batteries in homes to reduce grid stress, and in all markets, homeowners can use the batteries as backup during blackouts. With nearly 40 kWh capacity, these batteries can power a home for a day or more.
Investors and Leadership
The round was led by Ribbit, Addition, Valor Equity Partners, and JPMorganChase’s Strategic Investment Group, with participation from Altimeter, D1 Capital Partners, Sands Capital, Coatue, Layer Global, Energy Impact Partners, Thrive Capital, a16z, Lightspeed, Trust Ventures, CapitalG, and others. Base Power was co-founded by Zach Dell, who serves as CEO. Notably, his father, Dell CEO Michael Dell, did not participate in this round.
via TechCrunch