Base Power raises another $1B to save the grid using backyard batteries

Base Power, a startup focused on energy storage solutions, has raised an additional $1 billion to expand its backyard battery installations and bolster the U.S. electrical grid. This marks the company's second $1 billion round within a year, leading to a $13 billion post-money valuation. Base Power has installed over 500 megawatt-hours of storage in recent years, and the company hopes to double that pace to 8 megawatt-hours per day by year-end.

The new funding round, led by Ribbit Capital, Addition, Valor Equity Partners, and JPMorgan Chase’s Strategic Investment Group, comes as electricity demand surges due to increased electrification and the rapid construction of AI data centers. These data centers strain the grid, particularly in PJM territory, including parts of Illinois where Base Power operates.

Unlike traditional home battery installers, Base Power offers its storage systems on a subscription basis. Customers can install a single battery for $695 upfront, with a monthly fee of $19 and a 13.1 cent per kilowatt-hour electricity charge. This model allows Base Power to charge stored electricity back to the grid during high demand periods, generating revenue for both the company and customers.

Base Power's latest offering, the Base Core battery, stores 39.2 kilowatt-hours of electricity, providing backup power for a day or more in case of blackouts. The device is manufactured at Base Power's Austin, Texas factory. The company operates in Texas and Illinois, regions affected by the increased demand on the electrical grid.

The company's innovative approach to energy storage, paired with the company's aggressive growth strategy, positions Base Power as a key player in helping the electrical grid adapt to the evolving energy landscape.