Lunar Energy Lands $232M to Power the Next Wave of Grid-Resilient Homes

In a market where electric vehicles once stole the spotlight, it’s stationary energy storage that’s now commanding attention—and capital. Lunar Energy, a six-year-old startup building home battery systems, just closed two major funding rounds, securing $130 million in a previously unannounced Series C and $102 million in a Series D, bringing its total funding to over $500 million.

The latest rounds were led by Activate Capital (Series C) and a joint effort by B Capital and Prelude Ventures (Series D). With this fresh capital, Lunar Energy plans to scale manufacturing aggressively, targeting 20,000 units by the end of this year and ramping up to 100,000 units annually by the end of 2028.

While much of the battery industry has been whipsawed by policy shifts—particularly after the Trump administration and GOP-controlled Congress gutted key provisions of the Inflation Reduction Act—Lunar’s focus on stationary storage has positioned it in a rare growth sweet spot. As the U.S. grid strains under the weight of electrification and surging data center demand, grid-connected batteries have emerged as one of the most flexible tools to enhance resilience.

Lunar’s battery packs come in 15 kWh and 30 kWh modules, designed for homeowners in California, Georgia, and Washington. But their real power lies in the company’s virtual power plant (VPP) software, which can orchestrate not just battery output but also control EV chargers and household appliances. This means Lunar’s systems can both inject power into the grid when demand spikes and reduce consumption during peak hours—essentially acting as a distributed, intelligent load balancer.

Such VPPs are increasingly seen as a direct replacement for costly and polluting peaking power plants, with analysts predicting they could displace gas-fired peakers within just a few years.

Lunar isn’t alone in this race. Competition in the residential VPP space is heating up fast. In October, Base Power raised a staggering $1 billion—less than six months after closing a $200 million round—for its own residential battery-based VPP. Tesla operates a Powerwall-based VPP, and other heavyweights are jumping in: JB Straubel’s Redwood Materials launched an energy storage division targeting AI data centers, and even Ford recently announced plans to enter the battery storage business to support data centers and the grid.

The transformation of batteries from niche grid components to major assets has been swift. Their modularity allows for rapid deployment, and while they remain more expensive than some fossil fuel sources, prices have been falling fast. With investors now piling in, the momentum behind stationary storage is undeniable.

In a world racing toward electrification, Lunar Energy’s latest funding round signals that the future of the grid may well be powered from the bottom up—one home battery at a time.

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