Yesterday, Base Power announced a $1 billion series C, giving the residential battery company an eye-popping $4 billion post-money valuation. Base manufactures, installs, owns, and operates residential batteries — a vertical integration strategy that CEO Zach Dell says is the “magic” to beating utility-scale batteries on CapEx. The company also acts as an electricity retailer and sells generation capacity.

So how does Base’s business model work? And what will it do with its new fundraise?

In this episode, Shayle talks to Zach about Base’s business model, the vertical integration strategy, and the challenges ahead. They cover topics like:

The customer value proposition: how customers pay for backup power and Base uses the batteries for grid services

Bases’s “gentailer” business model in ERCOT, earning revenue from monthly customer fees, retail electricity sales, and battery arbitrage

The regulated market approach, where Base sells capacity directly to utilities

Base’s vertical integration strategy: from ground-mounted designs to decoupled installation processes

Challenges like managing a fixed workforce amid fluctuating demand and the declining price volatility in ERCOT

Resources:

New York Times: Base Power, a Battery-Focused Power Company, Raises $1 Billion

Open Circuit: Is this moment for distributed energy different?

Catalyst: Is now the time for DERs to scale?

Credits: Hosted by Shayle Kann. Produced and edited by Daniel Woldorff. Original music and engineering by Sean Marquand. Stephen Lacey is our executive editor.

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