Lunar Energy raises $232 million to scale home battery deployments and AI-powered VPP software to meet surging demand for affordable electricity
Oversubscribed Series D financing of $102 million led by B Capital and Prelude Ventures follows a previously unannounced $130 million Series C led by Activate Capital
MOUNTAIN VIEW, Calif., Feb. 04, 2026 (GLOBE NEWSWIRE) -- Lunar Energy, the leader in integrated home battery systems and Virtual Power Plant software, today announced it raised $102 million in an oversubscribed Series D round led by B Capital and Prelude Ventures. This round follows a previously unannounced Series C financing of $130 million led by Activate Capital. These commitments will accelerate Lunar’s mission of powering every home with clean, reliable, and affordable energy with its suite of hardware and software products.
The Series C and Series D funding rounds also included participation from DCVC, Piva Capital, Leitmotif, Sunrun, Itochu Corporation, and Q Capital Partners.
Following a successful launch in California, this financing will help expand Lunar’s award-winning home battery system across the country. The investment will also help scale Lunar’s AI-driven distributed power software platform – Lunar Gridshare – which already manages the country’s largest programs for managing distributed resources, also known as Virtual Power Plants (VPPs).
As electricity demand rises and energy markets grow more complex, Lunar was founded on a simple thesis: electrification requires hardware, optimization requires software, and the future of affordable, reliable, and secure energy depends on both working together. With thousands of systems deployed and 650 MW of devices under management across multiple continents, Lunar is proving integrated hardware and software delivers value at scale.
“This financing validates the reason we started this company,” said Kunal Girotra, Founder and CEO of Lunar Energy. “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.”
In its first year of commercialization, Lunar deployed thousands of systems in California. Sunrun leverages Lunar’s Gridshare platform for its distributed power plants across a dozen markets, including New England, Hawaii, and Puerto Rico. Lunar Gridshare is also used by California Community Choice Aggregators to develop and deploy new distributed power programs across the state, and utilities and energy retailers in Europe and Asia similarly work with Lunar to accelerate the energy transition.
For Lunar System customers, Lunar’s approach delivers affordable energy. Last year, Lunar’s AI-driven software earned customers an average of $464 by participating in a VPP program, and saved customers an additional $338 compared to a standard home battery operating mode. The Lunar System is designed in California, and assembled in Georgia and Washington – bolstering America’s leadership in the energy transition and maintaining eligibility for clean energy investment tax credits.
“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.”
"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," said Tim Woodward, Managing Director at Prelude Ventures. "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."
“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,” said Raj Atluru, Managing Partner of Activate Capital. “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.”
About Lunar Energy
Lunar Energy, Inc. powers homes around the world with endless clean energy. Founded in 2020, Lunar Energy develops intelligent software and advanced hardware to electrify homes and connect communities to form clean, resilient virtual power plants. The fast-growing, global company is delivering an ecosystem of all-electric products to make electricity greener, air cleaner, and energy more secure and reliable for everyone. Learn more at https://www.lunarenergy.com/.
About B Capital
B Capital invests globally in extraordinary founders and businesses shaping the future through technology. With more than $9 billion in assets under management and dedicated stage-based funds, the firm focuses on seed to early- and late-stage venture growth investments, primarily in the technology, healthcare and resilience tech sectors. Founded in 2015, B Capital has an integrated, global team across nine locations in the U.S. and Asia. The firm’s value-add platform, together with the consulting expertise of its strategic partner, The Boston Consulting Group, provides entrepreneurs with the tools and resources to scale quickly and efficiently, expand into new markets and build market-leading businesses. For more information, visit b.capital
About Prelude Ventures
Prelude Ventures is a climate-focused venture capital firm that invests in and supports early-stage startups with the greatest potential to mitigate climate change. For over a decade, Prelude has sought out purpose-driven founders and provided the capital and expertise needed to build the next generation of category-defining businesses that will reshape our global economy for the greater good of people and planet. Prelude Ventures is based in San Francisco, learn more at preludeventures.com.
About Activate Capital
Activate Capital is a growth-stage venture capital firm that invests in companies building critical physical systems, grounded in deep energy and infrastructure technology expertise, rigorous diligence, and high-engagement partnership. To learn more, please visit activatecap.com
Media Contacts
For Lunar Energy:
LaunchSquad
lunar@launchsquad.com
For B Capital:
Kate Thompson / Madeline Jones / Kate Kelley
Joele Frank, Wilkinson, Brammer, Katcher
Bcapital-JF@joelefrank.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b5c687cd-baf3-4f15-9557-eb91e77ef404
The Lunar System
The Lunar System
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