US-based energy storage company Lunar Energy has raised a combined $232M across two late-stage funding rounds to accelerate the rollout of its residential battery systems.
The company closed a previously undisclosed $130M Series C led by Activate Capital, followed by a $102M Series D led by B Capital and Prelude Ventures.
With this latest capital, Lunar Energy has now raised more than $500M in total funding as investor attention increasingly shifts toward stationary energy storage as a critical pillar of grid stability.
Scaling manufacturing and long-term deployment
Lunar Energy plans to use the new funding to rapidly expand manufacturing capacity, targeting production of 20,000 battery units by the end of this year and scaling to 100,000 units annually by the end of 2028.
The company currently deploys home battery systems across California, Georgia, and Washington, offering modular configurations of 15 kWh and 30 kWh designed for residential use.
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Virtual power plants as an alternative to peaker plants
Beyond individual households, Lunar aggregates its installed battery fleet into virtual power plants. Through its software platform, the company can dispatch stored energy back to the grid during peak demand while also managing EV chargers and household appliances to reduce overall load.
These virtual power plants are increasingly viewed as a cleaner and more flexible alternative to traditional peaking power plants, which are often fossil-fuel based, expensive to operate, and used only during periods of high demand.
As electricity grids face mounting pressure from electrification, data centre growth, and volatile supply conditions, grid-connected batteries are emerging as one of the fastest ways to improve resilience.
Stationary storage gains momentum amid policy shifts
Stationary energy storage has become a bright spot for battery companies following policy uncertainty in the US automotive sector. While earlier incentives focused heavily on EV manufacturing, grid-scale and residential batteries are now attracting sustained investor interest as their economics improve and deployment accelerates.
Battery systems have evolved from niche assets into core grid infrastructure in just a few years. Their modular design allows for rapid deployment, and while costs remain higher than some legacy power sources, prices continue to fall steadily.
A crowded but fast-growing market
Lunar Energy is entering an increasingly competitive landscape. Other players have raised significant capital to pursue similar virtual power plant strategies, while major incumbents continue to expand their storage offerings.
Despite growing competition, investor appetite for stationary storage remains strong, reflecting confidence that home batteries and aggregated virtual power plants will play a central role in the future of resilient, low-carbon electricity systems.
