Lunar Energy raises $232 million to deploy grid-enabled home batteries

Forget electric vehicles, stationary batteries are getting all the attention and investment in the US these days.

Startup Lunar Energy is the latest example. The six-year-old company, which makes battery packs for homeowners in California, Georgia and Washington, said Wednesday it has completed two major financing rounds. The startup shared that it has raised a previously undisclosed $130 million Series C and $102 million Series D. The Series C was led by Activate Capital, while the Series D was led by B Capital and Prelude Ventures.

The startup plans to use the funds to scale manufacturing to 20,000 units by the end of this year before rising to 100,000 by the end of 2028. In total, Lunar has raised more than $500 million from investors.

Stationary storage has become a bright spot for battery makers that have taken a political hit after the Trump administration and the GOP-controlled Congress repealed large parts of the inflation-tapping law, which incentivized companies to build batteries in the United States to supply the auto industry.

With the grid straining under the weight of an increasingly electrified economy — coupled with a boom in demand for data centers — grid-connected batteries have become one of the most versatile ways to boost its resilience.

Lunar can leverage its fleet of batteries, which come in 15 kWh and 30 kWh units, to deliver power to the grid when needed. Its Virtual Power Plant (VPP) software can also control chargers and electrical appliances, allowing it to supply electrons while reducing demand.

These VPPs are expected to be able to replace expensive and polluting power plants within years.

Competition in the space has intensified recently. In October, Base Power raised $1 billion, less than six months after raising $200 million for its residential battery-based VPP project. Tesla runs its own Powerwall-based VPP program as well.

Outside of residential areas, Tesla’s storage business is growing by leaps and bounds, while former Tesla executive JB Straubel’s startup Redwood Materials has launched its own energy storage division. Even Ford wants to get in on the action.

Batteries have gone from being small players just five years ago to major assets on the grid. Their modularity makes them quick to build and easy to deploy, and although they are still expensive compared to some fossil fuel energy sources, prices are falling rapidly. No wonder investors are piling in.