Lunar Energy has secured $230 million to expand as U.S. home battery storage market accelerates as strain on grid increases. The firm, owned by Tesla Inc’s former energy chief is making plans to expand into new markets. The firm develops software that helps optimize home batteries to charge when electricity is cheap. Conversely, it sends stored energy back to the grid when demand is high. It also began deploying its own batteries by working with distributors last year. The firm has about 2,000 installations across California, said Kunal Girotra, who left Tesla to found Lunar about six years ago.

The new funding includes a $102 million Series D round led by B Capital and Prelude Ventures. It also includes a previously unannounced $130 million Series C round. Lunar will use it to expand battery sales in new markets, such as Texas, Puerto Rico and Hawaii. Girotra said his startup is close to being valued at $1 billion, though he declined to provide specific details. Battery storage projects of various kinds are taking shape across the U.S. such as Enlight Renewable’s CO Bar Complex in Arizona. 

Scope of Implementation on the Lunar Energy Home Battery Storage Market

The Lunar Energy home battery storage market is taking advantage of the growing home energy storage. In 2025, the U.S. added nearly 4.9 gigawatt-hours of home energy storage. This is almost a 60% increase from the prior year, according to expert estimates. That can help homes keep the lights on during extreme weather and help utilities improve grid management. Furthermore, they would avoid firing up so-called natural gas peaker plants during periods of high demand.

Girotra said he remains confident about the future demand. Lunar is ramping up battery production capacity to 100,000 units per year by the end of the decade. It is a fivefold increase from what the startup will be able to manufacture this year. Girotra attributed part of his optimism to the fact that tax credits for leased residential batteries remain in place through the end of 2027. Battery costs are also expected to continue falling as well.

Project Factsheet

• Company: Lunar Energy
• Founder: Kunal Girotra (Tesla Energy former chief)
• Headquarters: United States

Funding

• Capital raised in total: 230 million.
• Series D: $102 million
• Series C: (then undisclosed) $130 million.
• Prelude Ventures, B Capital, are the lead investors.
• Implied value: Close to $1 billion (unofficially announced)

Technology & Product

• Main product: Home battery software and storage systems.

Function:

• Bills the electricity at low-cost rates.
• Rehabs energy stored to the grid when the demand is at its peak.
• Battery distribution: Self owned hardware through partners.

Market Presence

• Current installations: 2,000
• Primary market: California
• Growth markets: Texas, Puerto Rico, Hawaii.

Market Context

• S. home storage added (2025): 4.9 GWh
• Year-on-year growth: 60%
• Motivations: grid strain, extreme weather, peak demand management.

Growth Outlook

• Output Goal: 100,000 batteries annually at the end of the decade.
• Scale up: 5 times the current manufacturing capacity.
• Policy support: Residential battery tax credits until 2027.
• Cost trend: Battery prices to fall further.