Lunar Energy raises $232M to deploy home batteries that prop up the grid

Forget EVs — stationary batteries are getting each the buzz, and investment, successful the U.S. these days.

Startup Lunar Energy is the latest example. The six-year-old company, which builds artillery packs for homeowners successful California, Georgia, and Washington, said Wednesday it has completed 2 ample backing rounds. The startup shared it raised a antecedently unannounced $130 cardinal Series C and a $102 cardinal Series D. The Series C was led by Activate Capital, portion the Series D was led by B Capital and Prelude Ventures.

The startup plans to usage the funds to standard manufacturing to 20,000 units by the extremity of this twelvemonth earlier rampaging to 100,000 by the extremity of 2028. In total, Lunar has raised much than $500 cardinal from investors.

Stationary retention has go a agleam spot for artillery manufacturers that person been taxable to argumentation whiplash aft the Trump medication and GOP-controlled Congress gutted ample parts of the Inflation Reduction Act, which had incentivized companies to physique batteries successful the U.S. to proviso the automotive industry.

As the grid strains nether the value of an progressively electrified system — on with the roar successful information halfway request — grid-connected batteries person go 1 of the astir versatile ways to boost its resiliency.

Lunar tin telephone connected its fleet of batteries, which travel successful 15 kilowatt-hour and 30 kilowatt-hour modules, to present foodstuff to the grid erstwhile needed. It’s virtual powerfulness works (VPP) bundle tin besides power EV chargers and appliances, allowing it to some proviso electrons portion tamping down demand.

Such VPPs are expected to beryllium capable to regenerate costly and polluting peaking powerfulness plants successful a substance of years.

Competition successful the abstraction has been heating up lately. In October, Base Power raised $1 billion, little than six months aft raising a $200 cardinal circular for its residential battery-based VPP. Tesla operates its ain Powerwall-based VPP, too.

Outside of residential settings, Tesla’s retention concern has been growing successful leaps and bounds, portion erstwhile Tesla enforcement J.B. Straubel’s startup Redwood Materials has launched its ain vigor retention division. Even Ford wants successful connected the action. 

Batteries person transformed from spot players conscionable 5 years agone to large assets connected the grid. Their modularity makes them speedy to physique and casual to deploy, and portion they’re inactive costly comparative to immoderate fossil substance powerfulness sources, prices person been dropping quickly. No wonderment investors are piling in.