With extreme weather events becoming more frequent in a warming world, many homeowners are seeking reliable energy solutions. Backup batteries have gained popularity, but their limitations are clear: they only provide short-term relief. Meanwhile, a deeper issue persists—aging and unreliable power grids. That’s where virtual power plants come in, offering a more sustainable and controlled energy alternative through cloud-based systems.
Base Power, based in Austin, Texas, is a growing startup operating in this emerging space. The company installs and manages battery backup systems in homes while also functioning as a virtual power plant. Unlike competitors who sell hardware outright, Base rents its systems to customers and oversees every aspect, including installation, maintenance, and power supply. CEO Zach Dell explains that the dual role of Base allows it to support the grid during stable conditions while ensuring customers have power during outages. This approach can also reduce electricity bills by 10 to 20% each month.
Base’s business model involves controlling when and how energy is stored or released. The batteries are charged during periods of low demand—often at night—when energy is cheaper. When demand spikes, such as during summer evenings or winter mornings, the batteries discharge electricity back into the grid, helping stabilize it and lower costs for consumers.
Customers pay an upfront fee of $595 and a monthly subscription of about $19. This provides them access to a reliable, managed power system drawing from various sources, including wind, solar, coal, and natural gas. Approximately half of Base’s users also have solar panels, enabling them to generate their own electricity and sell excess energy back to Base. Compensation is based on the real-time wholesale energy price plus a premium of 3 cents per kilowatt hour, though rates may fluctuate depending on market factors.
Base is now collaborating with major homebuilder Lennar, which is also one of its investors. Batteries are being installed in new homes during construction in approximately 20 Lennar communities across Texas that are vulnerable to outages. The company has raised $268 million in funding from notable investors and recently launched its first utility partnership near San Antonio. While expansion beyond Texas is in the works, Dell noted that the company’s Chinese-manufactured batteries may soon be affected by new tariffs.
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