Base Power raises another $1B to save the grid using backyard batteries
The startup is supporting the energy grid with innovative solar storage solutions.
1Innovative energy storage solution
Unlike traditional energy storage companies, Base Power installs batteries in homeowners' backyards instead of near large grid connections. This model has enabled the company to deploy over 500 megawatt-hours of storage capacity in recent years. The startup announced a new $1 billion investment round, following last year's funding, bringing its valuation to $13 billion. This significant capital injection reflects growing confidence in distributed energy solutions.
2Daily installations and targets
Base Power currently installs about 100 batteries daily, aiming to double this number by year-end. This translates to approximately 8 megawatt-hours of daily storage capacity. The company's new Base Core batteries, manufactured in its Austin, Texas factory, offer 39.2 kilowatt-hours of storage - significantly more than competitors. Customers can choose between single or dual battery configurations, providing flexibility for different energy needs.
3Surging energy demand
Electricity demand is skyrocketing due to widespread electrification and rapid AI data center construction. After decades of stagnation, the U.S. power grid is expanding to meet these needs. The strain is particularly evident in PJM territory, which hosts numerous data centers, and parts of Illinois where Base Power operates. This increasing demand creates both challenges and opportunities for innovative energy storage solutions.
4Subscription-based access
Base Power offers a subscription model rather than requiring thousands in upfront payments typical of home battery installations. In Houston, customers pay $695 for installation, $19 monthly, and 13.1 cents per kilowatt-hour - rates competitive with local averages. The company, which retains battery ownership, sells stored electricity back to the grid during peak demand, creating additional revenue streams while stabilizing the grid.
5Grid support and backup power
In regulated markets, Base Power collaborates with utilities to alleviate local grid strain. Across all markets, homeowners can use the batteries for backup during outages. With nearly 40 kilowatt-hour capacity, these systems can power homes for a day or more - particularly valuable in areas prone to blackouts. This dual functionality addresses both individual consumer needs and broader grid reliability concerns.
6Investors and leadership
The funding round was led by Ribbit, Addition, Valor Equity Partners, and JPMorganChase's Strategic Investment Group, with participation from Altimeter, D1 Capital Partners, and others. Base Power was co-founded by CEO Zach Dell, though his father Michael Dell (Dell Technologies CEO) didn't participate in this round. The company's success reflects growing investor interest in clean energy solutions that combine technological innovation with scalable business models.
7New battery model: Base Core
Base Power unveiled its new Base Core home battery, manufactured in Austin, Texas. With 39.2 kilowatt-hours capacity - substantially more than competitors - it offers superior performance. Customers can opt for single or dual battery setups. The high capacity provides extended backup during outages, while the subscription model enhances accessibility, making advanced energy storage available to more households.
8Transforming the energy sector
Base Power's success signals a major shift in energy storage paradigms. Distributed systems like theirs enhance grid resilience compared to traditional large-scale solutions. With rising energy demands and climate-related outages, such innovations are becoming increasingly critical. The company's model promises a more sustainable future for both individual consumers and energy providers, demonstrating how technology can address pressing infrastructure challenges.