Base Power raises $1 billion to spread home batteries everywhere

Base Power built one of the largest battery storage systems in Texas in two years, and now it wants to grow even faster.

The Austin-based startup, which sparked… $200 million in Aprilreturned with another $1 billion financing. The Series C round was led by Addition with participation from CapitalG, Elad Gil, Lightspeed, Ribbit, Thrive Capital, and Valor Equity Partners.

The new round values ​​the company at $3 billion up front, According to For the New York Times.

Base Power has sold more than 100 megawatt-hours of its home battery storage in Texas, a notable number considering the company was founded in 2023.

Base Power rents the batteries to homeowners, who pay between $695 and $995 upfront to install 25-kilowatt-hour or 50-kilowatt-hour batteries, both of which dwarf the competition. (For example, a 25-kilowatt battery doubles one Tesla Powerwall.) The batteries can keep a home powered for up to 48 hours, according to the company.

Customers also pay a monthly fee ($19 or $29) and commit to purchasing electricity from Base Power for three years at 8.5 cents per kilowatt-hour plus connection fees.

By leasing the batteries, Base Power has been able to lower a major hurdle for many homeowners: the upfront cost of home storage batteries. The batteries themselves cost thousands of dollars for less storage capacity, not including installation costs.

Base Power has also benefited from Texas’ unregulated utility market, which allows households to easily change electricity suppliers.

The state utility regulator rewards energy providers that can respond quickly with large amounts of electricity when the grid needs it most, something grid-scale batteries excel at. In exchange for the lower upfront cost, Base Power customers agree to let the company use the batteries to sell electricity back to the grid when they don’t need it for backup power.

In addition to expanding outside of Texas, the company also plans to build a second battery factory in the United States. It is currently building its first factory near Austin, Texas.