With the construction of one of the biggest battery storage systems in Texas in just two years, Base Power has quickly emerged as a significant force in the energy sector and now intends to expand even further.
The Austin-based startup, which raised $200 million in April, has secured an additional $1 billion in Series C funding led by Addition, with participation from CapitalG, Elad Gil, Lightspeed, Ribbit, Thrive Capital, and Valor Equity Partners. According to the New York Times, the company’s pre-money valuation in the latest round is $3 billion.
Base Power raises $1 Billion with home batteries
Since its founding in 2023, Base Power has sold over 100 megawatt-hours of home storage batteries throughout the state of Texas. Homeowners who lease batteries from the company pay $695 to $995 up front for installation. Consumers have the option of 25 kilowatt-hour or 50 kilowatt-hour batteries, both of which are substantially larger than those of rival companies. In contrast, a Tesla Powerwall’s capacity is doubled by the 25-kilowatt model. These batteries can power homes for up to 48 hours, according to Base Power.
Customers commit to purchasing electricity from Base Power for three years at 8.5 cents per kilowatt-hour plus delivery fees in exchange for a monthly fee of $19 or $29 per month.
Base Power eliminates a significant financial barrier for homeowners by leasing batteries instead of selling them outright. This is because traditional home storage systems are costly to install and can cost thousands of dollars.
Additionally, the business has profited from Texas’s deregulated utility market, which makes it simple for customers to move electricity suppliers. The state’s utility regulator rewards power providers that quickly supply electricity to the grid, and grid-scale batteries handle that task effectively. In exchange for lower upfront costs, customers allow Base Power to sell electricity back to the grid when they don’t need the batteries for backup power.
In the future, Base Power intends to open a second battery factory in the United States in addition to Texas. The business is already building its first facility close to Austin, demonstrating its desire to grow rapidly and take the lead in the expanding distributed energy storage market.
Featured Image Credit: Pok Rie; Pexels: Thank You!
