base power raises $1b to deploy home batteries everywhere

Base Power Secures $1 Billion to Accelerate Growth in Battery Storage

Base Power has rapidly established itself as a key player in the Texas battery storage market, achieving significant milestones within just two years of operation. The company is now poised for accelerated expansion following a substantial new funding round.

New Funding and Valuation

The Austin-based startup recently secured $1 billion in Series C funding. This investment round was spearheaded by Addition, with contributions from CapitalG, Elad Gil, Lightspeed, Ribbit, Thrive Capital, and Valor Equity Partners.

According to reports from The New York Times, this latest funding values Base Power at $3 billion pre-money.

Rapid Market Penetration in Texas

Base Power has already achieved considerable success in Texas, having sold over 100 megawatt-hours of its residential storage batteries. This is particularly impressive given the company’s founding date in 2023.

Innovative Battery Leasing Model

Base Power differentiates itself through a leasing model for home storage batteries. Homeowners can install either 25 kilowatt-hour or 50 kilowatt-hour batteries for an initial payment ranging from $695 to $995.

These battery capacities significantly exceed those of competitors; for example, the 25-kilowatt battery offers double the storage capacity of a single Tesla Powerwall. The company states these batteries can power a home for up to 48 hours.

Subscription Details and Electricity Pricing

Alongside the upfront installation cost, customers pay a monthly fee of either $19 or $29. They also commit to purchasing electricity from Base Power for a three-year term at a rate of 8.5 cents per kilowatt-hour, plus standard delivery charges.

By offering a leasing option, Base Power effectively removes a major barrier to entry for homeowners – the high initial cost associated with purchasing and installing home battery systems. The cost of batteries, even for limited storage, can be substantial, excluding installation expenses.

Leveraging Texas’ Deregulated Energy Market

The company is strategically capitalizing on Texas’ deregulated electricity market, which allows consumers to easily switch between energy providers.

Texas’ regulatory framework incentivizes power providers capable of rapidly supplying substantial electricity to the grid during peak demand. Grid-scale batteries are uniquely suited to fulfill this need. In return for the reduced upfront cost, Base Power customers grant the company permission to utilize their batteries to sell excess electricity back to the grid when not required for personal backup power.

Future Expansion Plans

Looking ahead, Base Power intends to expand its operations beyond Texas. Furthermore, the company is planning the construction of a second battery manufacturing facility within the United States.

Currently, Base Power is in the process of building its initial factory located near Austin, Texas.