Base Power, a startup co-founded by Zach Dell, son of Michael Dell, has completed a $1 billion funding round, reaching a valuation of $13 billion. The company is rushing to manufacture and install battery storage systems for residential homes, aiming to become a major player in the growing US power industry.
Founded just three years ago, Base Power has now raised over $2.5 billion in total funding. The company has already installed more than 23,000 battery systems in Texas and the newly expanded Chicago market, with daily installations averaging around 100 units. Current capacity totals about 550 megawatt-hours, equivalent to a large utility-scale storage facility.
Key strategic investors in this round include Ribbit Capital, Addition, Valor Equity Partners, and J.P. Morgan Strategic Investment Group, as part of the bank's security and resilience program. Michael Dell did not participate in the investment.
The company's dual business model operates in deregulated power markets, where Base Power owns and operates the batteries while also serving as a retail electricity provider offering below-market rates. During normal grid operations, the platform aggregates thousands of home batteries to feed power back to the grid during peak demand. During outages, the systems provide backup power for households.
In regulated areas, Base Power partners with utilities, municipal power companies, and electric cooperatives. The company's new modular battery units offer 39.2 kilowatt-hours of storage capacity, enough to power most homes for up to 36 hours during emergencies. Installation time for the new units has been reduced to under one hour thanks to pre-fabricated modular wiring designs.
The broader energy storage sector is experiencing rapid growth. According to reports from the American Clean Power Association and Wood Mackenzie, the US added 3.3 gigawatts of new storage power capacity and 8.4 gigawatt-hours of storage capacity in the first quarter of this year alone. Residential storage installations hit a record high of 1.3 gigawatt-hours during that period.
In El Paso, Texas, El Paso Electric is running a 9-megawatt pilot program with Base Power, offering residents $250 per battery installation to help relieve grid congestion on the most strained power lines. CEO Kelly Tomblin said the batteries could reduce the need for costly grid upgrades designed to handle just 10-15 days of peak summer demand.
Base Power co-founder Justin Lopas previously served as head of manufacturing at Anduril Industries, another Valor Equity Partners portfolio company. Valor founder Antonio Gracias, an early investor in Tesla and SpaceX, praised the team's approach, stating that "the problem they're solving is critical, and the solution is innovative."