Base Power Raises $1 Billion to Broaden Nationwide Home Battery Solutions

In just two years, Base Power has built one of the largest battery storage systems in Texas and is now targeting even more rapid expansion.

The startup based in Austin, which secured $200 million in funding in April, has now raised an additional $1 billion. The Series C funding round was led by Addition, with participation from CapitalG, Elad Gil, Lightspeed, Ribbit, Thrive Capital, and Valor Equity Partners.

As reported by the New York Times, this latest funding round sets the company’s pre-money valuation at $3 billion.

Since its formation in 2023, Base Power has sold over 100 megawatt-hours of its residential battery storage systems in Texas — an impressive feat.

Base Power provides batteries for lease to homeowners, necessitating an upfront payment ranging from $695 to $995 for either the 25-kilowatt-hour or 50-kilowatt-hour models, both of which surpass competitors. (For context, the 25-kilowatt battery offers double the storage capacity of a Tesla Powerwall.) According to the company, these batteries can sustain a household’s power for up to 48 hours.

Customers are also required to pay a monthly fee of $19 or $29 and commit to buying electricity from Base Power for three years at a rate of 8.5 cents per kilowatt-hour plus delivery fees.

By providing battery leases, Base Power has addressed a significant obstacle for homeowners: the initial investment needed for home storage systems. Conventional batteries can cost thousands of dollars for lower storage capacity, not including installation costs.

Base Power is also taking advantage of Texas’s deregulated utility market, which allows households to easily switch between electricity providers.

The state’s utility regulator incentivizes power suppliers that can deliver substantial amounts of electricity swiftly during peak demand, a strength of grid-scale batteries. In exchange for the lowered upfront cost, Base Power customers agree to allow the company to use the batteries for selling electricity back to the grid when backup power is not required.

In addition to Texas, the company is also planning to establish a second battery production facility in the United States, with its first factory currently being constructed near Austin, Texas.