Lunar Energy has recently made headlines by securing an impressive $230 million in funding, a significant milestone that highlights the accelerating demand for home battery storage solutions in the U.S. As the nation’s electrical grid faces increasing strain, Lunar aims to position itself as a leader in this burgeoning market. Founded by Kunal Girotra, Tesla’s former energy chief, Lunar Energy is gearing up for expansion into new territories and is poised to make a lasting impact on how we think about energy storage at home.
Lunar’s innovative approach focuses on software that helps optimize home batteries. By allowing users to charge their batteries when electricity costs are low, and discharge stored energy back to the grid during high-demand periods, the company is not just benefiting homeowners but also contributing to stabilizing the grid itself. Currently, Lunar Energy boasts around 2,000 installations across California, reflecting its early success in the market.
Funding for Expansion and Growth
The recent funding round comprises a $102 million Series D round led by B Capital and Prelude Ventures, coupled with a $130 million Series C round that was previously unannounced. Girotra has hinted that Lunar is on the verge of reaching a valuation near $1 billion, a significant achievement that underscores the company’s growth trajectory. With this influx of capital, Lunar plans to broaden its reach, launching battery sales in new markets such as Texas, Puerto Rico, and Hawaii, all of which have unique energy needs and opportunities for innovative storage solutions.
Market Landscape and Implementation Strategy
The home battery storage market is experiencing a remarkable surge, with the U.S. adding nearly 4.9 gigawatt-hours of storage capacity in 2025 alone—a staggering 60% increase from the previous year. This exponential growth is driven by factors like the need to maintain power during extreme weather conditions and the importance of managing grid demand effectively. As more households adopt battery storage technology, utilities can better manage their resources, reducing the need to deploy costly natural gas peaker plants during peak periods.
Girotra is optimistic about future demand, citing the company’s ambitious goal to ramp up production capacity to 100,000 units annually by the end of the decade—five times the manufacturing rate for this year. One key aspect of this confidence stems from the sustained availability of tax credits for residential battery installations, which are set to remain in place through the end of 2027. Additionally, decreasing battery costs are expected to further encourage adoption, making this technology accessible to a wider audience.
Project Overview and Technological Edge
Lunar Energy’s commitment to advancing home battery technology centers on its main product: sophisticated home battery software and energy storage systems. Their innovative solution allows households to capitalize on lower electricity prices by storing energy when it’s cheaper and redistributing it during peak demand times. This dual functionality not only enhances energy efficiency but also provides a financial incentive for homeowners.
- Company: Lunar Energy
- Founder: Kunal Girotra (Tesla Energy former chief)
- Headquarters: United States
Funding Details
- Total Capital Raised: $230 million
- Series D: $102 million
- Series C: $130 million (previously undisclosed)
- Lead Investors: Prelude Ventures, B Capital
- Implied Valuation: Close to $1 billion
Technological Features
- Main Product: Home battery software and storage systems
- Functionality:
- Accesses electricity at low-cost rates
- Sends rehabilitated energy back to the grid during peak demand
- Distribution via partnerships with other companies
Market Presence and Future Outlook
- Current Installations: About 2,000
- Primary Market: California
- Growth Markets: Texas, Puerto Rico, Hawaii
Market Context
- U.S. Home Storage Installed (2025): 4.9 GWh
- Year-on-Year Growth: 60%
- Key Drivers: Grid strain, extreme weather conditions, peak demand management
Growth Objectives
- Output Goal: 100,000 batteries annually by the end of the decade
- Scaling Up: Fivefold increase in current capacity
- Policy Support: Continued residential battery tax credits until 2027
- Cost Outlook: Anticipated decrease in battery prices