US startup Base Power raises $1 billion for home batteries

Unlike the traditional energy-sector approach, which relies on large sites and massive substations, US company Base Power has chosen a different way to address energy shortages. The startup is proving that installing small batteries in consumers’ yards can help preserve and strengthen the broader power grid. According to The Wall Street Journal, the company managed to raise another $1 billion in investment in its latest funding round. TechCrunch.com reports this.

Following the Series D funding round, the Texas-based company was valued at $13 billion. Notably, this major financial success came less than a year after its previous $1 billion round. Base Power specialists currently install approximately 100 home batteries every day and plan to double that figure by the end of this year. This means adding roughly 8 megawatt-hours of energy storage capacity daily.

Base Core device and service terms

Against the backdrop of the financial news, Base Power also unveiled a new home battery called Base Core. Manufactured at the company’s facility in Austin, Texas, the device can store 39.2 kilowatt-hours of electricity, significantly outperforming competing products on the market. Customers can choose one or two batteries based on their needs. The company currently operates in Texas and Illinois.

Unlike most home-battery installers, Base Power does not require an upfront payment of thousands of dollars. Instead, the system is offered on a subscription basis. In the Houston area, installation of one battery costs $695, the monthly subscription fee is $19, and customers pay 13.1 cents for every kilowatt-hour of electricity consumed. The company can use the batteries it owns to resell excess power to the grid when demand for electricity surges.

Energy shortages and grid loads

The funding round comes at a time when electricity demand is surging due to the digitization of the economy, large-scale electrification and the rapid construction of AI data centers. Although the US power grid has been expanding in recent years, this kind of demand spike has placed significant strain on many regions, particularly the PJM grid, which includes numerous data centers.

Some parts of Illinois, where Base Power operates, also fall within the PJM grid region. In regulated markets, the company works closely with local utilities to install batteries in customers’ homes and reduce strain on energy networks. In both regulated and deregulated markets, homeowners can use these batteries to keep their homes continuously powered during unexpected outages.

With a capacity of nearly 40 kilowatt-hours, these batteries can provide backup electricity for a day or longer. The latest funding round was led by funds from Ribbit, Addition, Valor Equity Partners and JPMorganChase’s Strategic Investment Group. Major investors including Altimeter, D1 Capital Partners, Sands Capital, Coatue, Layer Global, Energy Impact Partners, Thrive Capital, a16z, Lightspeed, Trust Ventures and CapitalG also participated. Base Power was founded by Zach Dell, who serves as its CEO.