Lunar Energy, a California-based company specializing in integrated home battery systems and virtual power plant (VPP) software, has raised $102 million in an oversubscribed Series D funding round led by B Capital and Prelude Ventures. This follows a previously unannounced $130 million Series C round led by Activate Capital.
The funding rounds, announced February 4, also saw participation from DCVC, Piva Capital, Leitmotif, Sunrun, Itochu Corporation, and Q Capital Partners.
Lunar said the new investment will help scale its artificial intelligence-powered distributed energy platform, Lunar Gridshare, which manages a large portfolio of distributed energy resources operating in virtual power plants across multiple regions.
Integrated Hardware and Software Model
Founded in 2020, Lunar was built on the belief that electrification needs hardware, while optimization requires software and that the future of reliable, affordable energy depends on combining both. The company has deployed thousands of systems and currently manages 650 MW of devices globally.
“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.”
Market Expansion and Customer Benefits
In its first year of commercialization, Lunar deployed thousands of systems in California. Sunrun uses Lunar’s Gridshare platform across multiple markets, including New England, Hawaii, and Puerto Rico. The platform is also used by California Community Choice Aggregators and energy providers in Europe and Asia.
Last year, Lunar’s AI-driven software helped customers earn an average of $464 through VPP participation, while saving an additional $338 compared to standard battery operation.
The Lunar System is designed in California and assembled in Georgia and Washington.
Investors highlighted Lunar’s integrated approach as a key differentiator. Industry leaders from B Capital, Prelude Ventures, and Activate Capital emphasized the company’s ability to combine modular battery hardware, AI optimization, and grid flexibility to address rising electricity demand, grid instability, and growing energy affordability concerns.
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