Base Power raised $200 million in a Series B round in April 2025, with participation from Addition, Andreessen Horowitz, Lightspeed Venture Partners, and Valor Equity Partners. Additional investors included Altimeter, Terrain, Thrive Ventures, and Trust Ventures.

To date, the company has secured $268 million in total funding. Before the Series B, Base Power raised $68 million across earlier rounds preceding its commercial launch.

Base Power offers a home battery and electricity service that integrates large-format residential energy storage with a retail electricity plan. Customers receive a battery system with 25 or 50 kilowatt-hours of usable capacity, exceeding the storage capacity of competing products such as Tesla's Powerwall.

The system includes wall-mounted indoor units for smaller capacities or ground-mounted outdoor modules that can be stacked to achieve higher capacities. Each installation incorporates an integrated inverter and hub capable of disconnecting the home from the grid in under half a second during power outages. Operating at 40 decibels, the battery runs quietly and supports essential home loads, including air conditioning units, without requiring additional soft-start equipment.

Under normal grid conditions, the battery maintains approximately 93% charge, with Base Power's software managing charging and discharging cycles remotely. The system employs machine learning to forecast outages and reserves sufficient power to address 97% of historical blackout scenarios in Texas. During outages, the 25 kWh system provides 8-12 hours of backup power, while the 50 kWh version delivers 15-24 hours, based on typical household usage patterns.

Homeowners can monitor their system through Base Power's web and mobile applications, which provide real-time battery status, runtime projections, and energy bill savings.

Base Power operates a vertically integrated energy storage and retail electricity business model, generating revenue through multiple streams while retaining ownership of its battery assets. The company employs a B2C approach in which homeowners pay minimal upfront costs in exchange for committing to three-year electricity contracts.

Instead of selling batteries outright, as is common among traditional solar and storage companies, Base Power retains ownership of the hardware and assumes all maintenance responsibilities. This asset-ownership model enables the company to capture ongoing value from grid services while providing customers with backup power at significantly lower upfront costs. For comparison, a Tesla Powerwall installation typically costs approximately $15,000 before incentives, whereas Base Power charges less than $1,000 upfront.

The primary monetization strategy focuses on grid-balancing operations within Texas's deregulated electricity market. Base Power aggregates its distributed battery fleet into a virtual power plant, generating revenue by selling stored energy back to the grid during peak demand periods when wholesale electricity prices increase. Grid services revenue likely constitutes the highest-margin component of the business model.

The company's cost structure benefits from economies of scale in battery procurement and installation. Additionally, the electricity contracts function similarly to subscriptions, providing predictable recurring revenue. Base Power optimizes dispatch across its battery fleet to maximize grid services income while offering customers fixed retail electricity rates.

Tesla presents a significant competitive challenge through its integrated model, which combines Powerwall batteries with Tesla Electric retail energy plans. Tesla provides both fixed and dynamic electricity tariffs and compensates customers $400 annually per Powerwall for participation in its virtual power plant program. The company capitalizes on its brand recognition, in-house battery cell production, and cross-selling opportunities with electric vehicle customers, who benefit from unlimited home charging.

Sunrun has collaborated with Tesla Electric to integrate subscription solar installations with Tesla's retail electricity service, creating a bundled alternative to Base Power's offerings. This partnership merges Sunrun's installer network with Tesla's wholesale energy trading capabilities, forming a full-stack competitor that delivers solar generation, battery storage, and retail electricity services.

Octopus Energy operates grid services programs that pay customers $20–40 monthly for every 5 kWh of battery capacity sourced from partners such as Enphase and SolarEdge. Its Kraken software platform manages batteries, electric vehicles, and smart thermostats as part of an integrated virtual power plant. While Octopus offers competitive wholesale price pass-through and advanced demand management, customers must purchase batteries upfront, contrasting with Base Power's low-cost installation model.

NRG, through its Reliant brand, is developing a 1-gigawatt residential virtual power plant in collaboration with technology providers. These established retail electricity providers leverage existing customer relationships and regulatory expertise in Texas. However, they are still in the process of building distributed battery capabilities and do not yet offer turnkey solutions comparable to Base Power.

Electric cooperatives such as Bandera Electric and GVEC are testing subscription battery programs where the utility owns the battery fleet and shares virtual power plant revenue with technology partners. This model has the potential to scale across Texas's numerous cooperative utilities, creating opportunities for Base Power partnerships. However, it also introduces competitive risks if cooperatives develop in-house capabilities or collaborate with other technology providers.

Base Power is expanding its battery portfolio to include higher-capacity systems and modular configurations designed for larger homes and small businesses. Pilot programs featuring 25 kWh and 50 kWh systems indicate the ability to serve a range of customer needs, from small apartments to Texas homes exceeding 6,000 square feet.

Solar integration presents a measurable growth opportunity, with 35% of Base Power customers already owning rooftop solar installations. Adding hybrid inverters and integrated electric vehicle charging capabilities could enable the company to capture a larger share of the home electrification market. Federal EV charging incentive programs, valued at $7 billion, further enhance the potential financial upside.

The company's software platform, which supports outage prediction and battery dispatch optimization, could be marketed as a standalone product for utilities and energy companies. Repackaging these features as a distributed energy resource management system would generate high-margin software revenue with minimal additional capital investment.

Base Power has partnered with homebuilders such as Lennar to include battery systems as standard features in new construction across the Austin and Dallas-Fort Worth markets. Expanding similar agreements to builders like D.R. Horton, Pulte, and Toll Brothers could integrate Base Power systems into over 30% of new single-family home construction in Texas, converting each home sale into an energy plan customer.

The rental and multifamily housing market, which accounts for 37% of Texas households, remains largely untapped by traditional battery and solar providers. Smaller 5-10 kWh wall-mounted units leased to property managers could address this segment while enabling building-level aggregation and avoiding the complexities of single-family interconnection.

Base Power intends to expand beyond Texas into other deregulated electricity markets with favorable virtual power plant economics. The company's model relies on competitive wholesale electricity markets that incentivize grid services, making states with retail choice and active ancillary services markets the most viable targets.

In regulated utility markets, particularly in hurricane-prone regions like Florida and the Carolinas, Base Power could pursue partnerships where utilities retain customer relationships while leveraging Base Power's technology and services. Additionally, winter storm-prone areas in the Midwest represent potential markets where demand for backup power increases customer willingness to invest in battery solutions.

Manufacturing complexity: Base Power's plan to construct a domestic battery factory using proceeds from its Series B funding introduces operational and capital risks. Battery manufacturing involves highly specialized expertise and requires substantial upfront investment. Many companies pursuing vertical integration into manufacturing have encountered production delays, quality control challenges, and cost overruns.

Regulatory dependence: The company's reliance on Texas's deregulated electricity market and favorable virtual power plant economics presents regulatory risks. Changes to grid services compensation, retail electricity regulations, or interconnection standards could materially affect Base Power's revenue model and its competitive position within its primary market.

Customer concentration: Base Power's growth strategy, which focuses on partnerships with homebuilders and geographic concentration in Texas, creates exposure to customer and market concentration risks. Economic downturns that reduce new home construction or disruptions specific to the Texas energy market could disproportionately affect the company's revenue stability and growth trajectory.