Lunar Energy, a provider of integrated home battery systems and virtual power plant software, said it has raised $232 million in financing across a previously unannounced $130 million Series C and an oversubscribed $102 million Series D. The Series D was led by B Capital and Prelude Ventures, while the Series C was led by Activate Capital. Lunar said the combined commitments will fund nationwide expansion of its home battery deployments and continued scaling of its AI-driven distributed power software platform, Lunar Gridshare, as it targets rising electricity demand and growing grid complexity.
Lunar said the financing will support the expansion of its home battery system beyond California following an initial launch in the state. The company also said it will use the capital to scale Lunar Gridshare, a platform that manages distributed energy resources through virtual power plant programs. Lunar said Gridshare already manages the country’s largest distributed resources programs and is used by Sunrun for its distributed power plants across a dozen markets, including New England, Hawaii, and Puerto Rico. The company said Gridshare is also used by California Community Choice Aggregators to develop and deploy distributed power programs and that utilities and energy retailers in Europe and Asia also work with Lunar.
Lunar positioned its strategy around tightly integrated hardware and software, arguing that electrification requires hardware while optimization requires software, and that both are needed to deliver affordable, reliable, and secure energy. The company said it has deployed thousands of systems and now has 650 megawatts of devices under management across multiple continents, which it said demonstrates that integrated hardware and software can deliver value at scale.
For customers, Lunar said its AI-driven optimization helped deliver financial benefits through participation in virtual power plants. The company said that last year its software earned customers an average of $464 by participating in a VPP program and saved customers an additional $338 compared with a standard home battery operating mode. Lunar also said its system is designed in California and assembled in Georgia and Washington, supporting domestic manufacturing and maintaining eligibility for clean energy investment tax credits.
The Series C and Series D rounds included participation from DCVC, Piva Capital, Leitmotif, Sunrun, Itochu Corporation, and Q Capital Partners. Lunar was founded in 2020 and describes itself as building an ecosystem of intelligent software and advanced hardware to electrify homes and connect communities into virtual power plants.
KEY QUOTES
“This financing validates the reason we started this company. Five years ago, we believed the energy transition wouldn’t be solved by hardware alone or software alone. We built Lunar Energy to bring the best of hardware and software together, and this financing allows us to scale that model, helping homes electrify and become active participants in a smarter, more resilient grid.”
Kunal Girotra, Founder and Chief Executive Officer, Lunar Energy
“The residential battery storage industry is at an inflection point, and Lunar’s integrated hardware-software offering is setting a new standard. Lunar’s fully integrated approach – combining modular BESS hardware, advanced AI-driven optimization and a proven ability to deliver value to both homeowners and the grid – sets the company apart. By not just storing energy but intelligently learning each home’s unique consumption patterns, Lunar maximizes solar production, ensures reliability and drives energy affordability. We’re excited to support Kunal and the team as they continue building the resilience infrastructure the modern grid now requires, while accelerating the adoption of VPPs at scale.”
Jeff Johnson, General Partner, B Capital
“The combination of Lunar’s DC architecture, intelligent hardware, and ease of installation differentiates its residential battery from others in the industry and has led to significant market traction in 2025. Lunar uses sophisticated energy optimization intelligence to help homeowners manage rising home electricity bills. We’re excited to partner with the company as it shapes the next generation of decentralized grid operations.”
Tim Woodward, Managing Director, Prelude Ventures
“Lunar brings together two powerful insights: first, that the future of solar is integrated solar and storage to deliver truly resilient homes; and second, that flexibility at the edge is becoming increasingly valuable for both grid stability and household resilience. As power shortages and grid instability become the new normal – driven by surging data center demand and aging infrastructure exacerbated by climate impacts – we are seeing unprecedented demand from consumers, utilities, and governments for storage solutions like Lunar as critical infrastructure. We were thrilled to lead Lunar’s Series C, driven by our conviction in the team’s ambition across both hardware and software innovation, and we are proud to have doubled down in their Series D.”
Raj Atluru, Managing Partner, Activate Capital
