Within just a year, Base Power has expanded from a secretive start-up into one of the biggest battery arrays in Texas.
Currently, the firm has secured $200 million to support quick growth, which includes adding several additional megawatt-hours of battery storage as well as intentions to establish an at-home battery production facility.
The Series B funding round was spearheaded by Addition, Andreessen Horowitz, Lightspeed Venture Partners, and Valor Equity Partners. Altimeter, Terrain, Thrive Ventures, and Trust Ventures also took part in this round.
Backup batteries aren’t anything new—Tesla has been offering them for some time now. its Powerwall For close to ten years—Base Power has taken this concept into uncharted territories. Its battery storage systems are significantly larger, with capacities of either 25 or 50 kilowatt-hours; these sizes roughly equate to twice or four times as much power compared to an individual Powerwall unit. Additionally, when it comes to pricing, Base Power demands only $595 or $995 upfront based on their respective capabilities, whereas acquiring one Powerwall could set you back around $15,000 or even higher prior to any applicable rebates.
The catch? Customers must agree to purchase electricity from the company for three years at a rate of 9 cents per kilowatt-hour, along with any delivery fees charged by the local utility. Additionally, they have to pay an annual fee ranging between $225 and $345. average Texas household The charge amounts to approximately 2 cents per kilowatt-hour.
For Baseload Power, the significant financial gains likely come from what are known as grid-balancing services. Due to how Texas’s energy market operates, the company can receive substantial payments for utilizing the installed battery systems to return electricity to the grid.
Through the installation of residential batteries, Base Power seems to have discovered a swift method for assembling a megawatt-class collection of energy storage units, often referred to as a virtual power plant. Although Texas hosts an increasing number of large-scale grid-level battery installations, these typically require several years for planning, permitting, and construction.
However, residential batteries may be allowed and set up within just a few weeks. In March, Base Power installed ten megawatt-hours, as mentioned by co-founder and CEO Zach Delledonne. told Canary Media aims to reach the 100-megawatt-hour milestone by this summer.
The fresh capital will be directed towards accelerating installation processes and extending operations into additional states. Additionally, funds will be allocated for initiating the construction of a battery plant within the U.S. This move has the potential to partly shield them from tariff threats while simultaneously introducing a different kind of risk. Establishing battery plants has historically been difficult to perfect, with numerous challenges faced by various enterprises. hit rough patches when attempting the same.