Base Power Accelerates Home Battery Deployment with $1 Billion Funding
Austin-based energy storage startup Base Power has secured $1 billion in a Series C funding round to expand its innovative home battery leasing program nationwide. This latest financing round, led by Addition and joined by prominent investors including CapitalG and Lightspeed, values the company at $3 billion pre-money. Since its founding in 2023, Base Power has rapidly installed over 100 megawatt-hours (MWh) of home battery capacity in Texas, establishing one of the state’s largest residential energy storage footprints.
Advanced Battery Technology and Leasing Model
Base Power offers homeowners batteries with capacities of 25 kWh or 50 kWh — both substantially larger than typical market offerings. For reference, the 25 kWh battery doubles the capacity of a Tesla Powerwall. These batteries can provide uninterrupted power for up to 48 hours in case of outages. The company employs a leasing model that significantly lowers the upfront cost barrier: customers pay an initial installation fee ranging from $695 to $995, followed by monthly fees of $19 or $29. Additionally, customers commit to purchasing electricity from Base Power at a fixed rate of 8.5 cents per kWh plus delivery for three years. This structure mitigates the high capital expense typically associated with home battery ownership, where standalone systems often cost thousands of dollars without installation included.
Leveraging Texas’ Deregulated Electricity Market
Base Power has capitalized on Texas’ deregulated energy market, which allows consumers to switch electricity providers freely. The company uses its batteries not only for backup power but also to sell electricity back to the grid during peak demand periods, generating additional revenue. Customers agree to allow Base Power to access their batteries for grid services when not in use, enabling the company to respond rapidly to grid needs and earn incentives from the state’s utility regulator.
Expansion and Manufacturing Plans
Beyond scaling within Texas, Base Power intends to expand its footprint across other U.S. states. The company is also investing in manufacturing capacity, currently building its first factory near Austin and planning a second facility to meet growing demand. This vertical integration strategy aims to reduce costs and improve supply chain resilience as Base Power accelerates deployment of home energy storage solutions.
FinOracleAI — Market View
Base Power’s sizable funding and rapid deployment underscore the growing momentum in residential energy storage, especially in deregulated markets like Texas. The company’s leasing model and large-capacity batteries position it well to capture market share from established players.
- Opportunities: Expanding into deregulated markets nationwide; leveraging grid services revenue; manufacturing scale benefits.
- Risks: Regulatory changes affecting grid compensation; competition from established battery manufacturers; customer acquisition costs outside Texas.
Impact: Base Power’s innovative approach and strong capital backing are likely to accelerate home battery adoption, supporting grid resilience and clean energy integration.
