Lunar Energy, a provider of integrated home battery systems and Virtual Power Plant (VPP) software, has raised $102 million in an oversubscribed Series D round led by B Capital and Prelude Ventures.
This funding follows a previously unannounced $130 million Series C round led by Activate Capital, bringing the total to $232 million. Both rounds also included participation from DCVC, Piva Capital, Leitmotif, Sunrun, Itochu Corporation, and Q Capital Partners.
The company recently launched its service in California, and this funding is expected to help expand its home battery system nationwide. It will also support scaling its AI-driven distributed power software platform, Lunar Gridshare, which is said to manage programs for distributed resources, also known as VPPs.
“The residential battery storage industry is at an inflection point, and Lunar’s integrated hardware-software offering is setting a new standard,” said Jeff Johnson, General Partner at B Capital. “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.”
According to Mercom’s Annual and Q4 2025 Funding and M&A for Energy Storage report, VC funding in the Energy Storage sector in 2025 increased 30% YoY, to $4.8 billion across 75 deals, up from $3.7 billion across 84 deals in 2024.
Last Year, Texas-based Base Power raised $1 billion in Series C funding, led by Addition, to accelerate the deployment of its home battery storage solutions. Existing backers, such as Trust Ventures, Valor Equity Partners, Thrive Capital, Lightspeed, Andreessen Horowitz, Altimeter, StepStone, Elad Gil, 137 Ventures, Terrain, and Waybury, returned for the round.
