Michael Dell's son and a SpaceX alum want to put battery storage in every backyard

[Daniel Sims]

In brief: As energy demands from AI, electric vehicles, and other technologies mount, the tech sector's interest in battery storage has grown sharply in recent years. In the latest example, the son of Dell's founder has teamed up with a SpaceX alumnus to break into the fast-growing home battery storage market.

Home battery storage, which can lower electric bills by feeding power back to the grid, is gaining popularity across the US, particularly in warmer regions. A startup led by Zach Dell shows how the industry is expanding options for grid operators.

Although local battery storage has historically been tied to home solar power, the technology is increasingly showing up in homes with or without solar panels. Installing an air-conditioning-compressor-sized battery near a home's electric meter lets homeowners store energy when it's cheap, usually during the day, and helps stabilize the grid during peak hours.

Dell's company, Base Power, installs about 100 39-kWh home batteries a day and expects to double that pace by the end of 2026. So far, it has installed roughly 550 megawatt-hours, on par with a large utility-scale storage project.

The company is helping drive a broader trend. Partly encouraged by state policy in Texas, California, Arizona, and Hawaii, US homeowners installed a record 673 megawatts of storage in the first quarter of this year, according to the Energy Information Administration.

The American Clean Power Association and Wood Mackenzie report that of the 3.3 gigawatts of power capacity and 8.4 gigawatt-hours of total energy storage the US installed during the quarter, home batteries accounted for 1.3 gigawatt-hours.

The end of federal tax incentives for residential solar and battery installations has made both technologies less economically attractive, but individual states are finding their own ways to compensate homeowners who install batteries. Hawaii, for instance, pays $400 per kilowatt of installed capacity, while California offers recurring payments for contributions to the grid.

Base offers batteries that can power homes for 36 to 72 hours during outages and lower energy bills when connected to the grid. In regions with battery network policies, Base can enter agreements with local authorities; where those policies don't exist, it can double as a home backup battery retailer and an electric grid operator.

Early financial backer Antonio Gracias and co-founder Justin Lopas, both with SpaceX ties, believe Base and similar operations can help the US energy grid power a return to domestic manufacturing. Many also see them as a way to help meet the massive energy demands of AI data centers.

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Michael Dell's son and a SpaceX alum want to put battery storage in every backyard

 

[Linux Mint Xfce]

Just build more clean nuclear reactors for the power grid.

 

[user556]

Go fusion!

 

[Peter G]

It's true that nuclear does not emit carbon, but it is the most expensive power out there. Perhaps the small modular reactors can change that, I'm hopeful, but that is yet to be seen. Fusion is still way out there. Batteries are a wonderful technology. I have one and have been pushing them for over a decade, but the prices are still a tad high. It's not just the cost of the hardware, it's the engineering, permitting and labor to get the systems running. State energy tariffs often do not reflect the value added to the grid and public of these systems. For example, where I live in MA there are no Time Of Day (TOD) rates despite the electric utility having to pay much higher rates during peak periods. If homeowners could use TOD rates there would be arbitrage money which could help pay back the installation cost, and the public would benefit from overall lower energy costs of the utility. Thus, even those without battery systems would end up with reduced electric rates. Holding this back is also the utility engineering needed, as a battery system which would put energy back onto the grid requires the same Distributed Generation considerations as solar systems (unless the output of the battery is only used to power the associated home, reducing it's value to both homeowner and the public).

 

[Anton Longshot]

But...but...I do not have a backyard!

Oh wait I get it, this is for rich people only.

 

[Dreadcthulhu]

Just build more clean nuclear reactors for the power grid.

Fully agree that more nuclear reactors should be built, but even then people having their own backup batteries for load smoothing and short power outages is a nice thing to have.

 

[Dreadcthulhu]

But...but...I do not have a backyard!

Oh wait I get it, this is for rich people only.

In the US at least (where this company operates), the majority of the population lives in a single family dwelling, and would have the space to have one of these batteries installed. Apparently, they don't sell these things directly to consumers, but partner with utility companies and make their money through a combination of install fees, monthly fees in some areas, and collecting a portion of the electrical fees. Exact terms vary by location.

For example, their partnership with the utility in El Paso will literally pay people $250 to have one of these installed, and then you just pay your normal electrical bill to the utility. Over in Houston you would pay a $695 install fee and $19 a month membership fee, but would have your electrical price locked in at 13.1 cents per kw-hr for the next three years. With ComEd in the Chicago area, you pay a $95 install fee, then have your electrical bill locked at under 8 cents per kw-hr for two years. Honestly, those prices seem pretty reasonable, I mean if I lived in El Paso or the Chicago area I would get one of these in a heartbeat.

 

[Anton Longshot]

In the US at least (where this company operates), the majority of the population lives in a single family dwelling, and would have the space to have one of these batteries installed. Apparently, they don't sell these things directly to consumers, but partner with utility companies and make their money through a combination of install fees, monthly fees in some areas, and collecting a portion of the electrical fees. Exact terms vary by location.

For example, their partnership with the utility in El Paso will literally pay people $250 to have one of these installed, and then you just pay your normal electrical bill to the utility. Over in Houston you would pay a $695 install fee and $19 a month membership fee, but would have your electrical price locked in at 13.1 cents per kw-hr for the next three years. With ComEd in the Chicago area, you pay a $95 install fee, then have your electrical bill locked at under 8 cents per kw-hr for two years. Honestly, those prices seem pretty reasonable, I mean if I lived in El Paso or the Chicago area I would get one of these in a heartbeat.

Thanks for clearing this up a bit. As a EU citizen I was not aware of these things.

 

[NumberNine]

I'd rather the power company do their job by providing a reliable source of electricity without the help of the customers beyond billing them a fair rate in exchange. I know that must sound crazy today.

 

[Plutoisaplanet]

But...but...I do not have a backyard!

Oh wait I get it, this is for rich people only.

In the US that would be uncommon; 3/4 households here are detached houses (with private yards)

 

[Dreadcthulhu]

Thanks for clearing this up a bit. As a EU citizen I was not aware of these things.

That makes me wonder if there would be a market for apartment scaled back up batteries like these over in the EU; would be something to see if apartment complex owners & utilities would interested in.

 

[Anton Longshot]

That makes me wonder if there would be a market for apartment scaled back up batteries like these over in the EU; would be something to see if apartment complex owners & utilities would interested in.

I can only speak for NL - population density is VERY high - solar is super rare in Amsterdam, less so out in the country. I know a guy who lives in one of the small cities; he's got solar but feeds his excess directly back into the grid. I doubt a battery would be of use to him: if it were he'd probably have one. Things may be different in other countries.

 

[Endymio]

B

It's true that nuclear does not emit carbon, but it is the most expensive power out there.

In terms of operating costs (which also includes fuel) nuclear is by far the cheapest source of energy. Total costs are high because of amortized construction costs, which are themselves astronomical only because of the absurd system we use to build reactors, where a single lawsuit can shut down construction for years (incurring financing costs the entire time) and when construction restarts, much of what was done has to be torn out and rebuilt, due to regulatory changes in the interim.

 

[Axeia]

B

In terms of operating costs (which also includes fuel) nuclear is by far the cheapest source of energy. Total costs are high because of amortized construction costs, which are themselves astronomical only because of the absurd system we use to build reactors, where a single lawsuit can shut down construction for years (incurring financing costs the entire time) and when construction restarts, much of what was done has to be torn out and rebuilt, due to regulatory changes in the interim.

So frustrating how we have a good, clean source of energy and then the activists come along and are against just about the best one of we have and cause the price of it to skyrocket. Just can't win with those people.

Heck even with wind turbines people only seem to be in favor until they try to install them near them. Then suddenly they're considered wild life threatening horizon pollution.

imo until nuclear fusion is a thing we'll have to make to do with nuclear fission (and ideally, figure out how to recycle waste cost effectively to reduce the half life)

 

[Endymio]

imo until nuclear fusion is a thing we'll have to make to do with nuclear fission (and ideally, figure out how to recycle waste cost effectively to reduce the half life)

We already have that: Dr. Rubbia's so-called "energy amplifier" literally burns nuclear waste, converting it into energy.

Making sure you're not a bot!

 

[Freddie159]

Here in North Carolina along the Coast one of the local power company is putting in multiple battery packs in the substations so when the power goes out it comes back on again almost instantly until they can fix it.

 

[toooooot]

I recently learned that 70% of the batteries such as used in EVs are simply put in a burial site in the US.
I am still a bit skeptical, but shouldn't people who want millions of batteries everywhere start to think about recycling them?
Or at least start making changes to make recycling easier. Standards, batteries sharing similar specifications etc. I think that we are not doing enough given how long we have been using big batteries.

 

[Mark Fuller]

Fully agree that more nuclear reactors should be built, but even then people having their own backup batteries for load smoothing and short power outages is a nice thing to have.

Fully agree that more nuclear reactors should be built, but even then people having their own backup batteries for load smoothing and short power outages is a nice thing to have.

Just wait till what's left of the petroleum is all gone. When push comes to shove they will built nukes or even burn firewood rather than freeze. The world does not have an infinte petroleum supply.

 

[GrayDragon]

Just build more clean nuclear reactors for the power grid.

No such thing exists, unless you also process plutonium. Even microreactors produce waste at the end of their lifecycle.

 

[Mark Fuller]

No such thing exists, unless you also process plutonium. Even microreactors produce waste at the end of their lifecycle.

They sure will. Anything that makes energy will produce waste. But is it any different than the smog over the city of Los Angeles or even Your local sewage lagoon. The disposal of waste of any kind is not technical, (it can be done safely), it is political.

 

[Art C]

Two words: NUCLEAR ENERGY.

Build nuclear plants and build up the grid capacity.

All problems solved. ALL of them.

 

[Arkitekt78]

That doesnt sound like it would be damaging to the environment at all!

 

[jdrch]

LOL how's this going to work with inverter import ban? Dell might want to check with his WH buddy about that.

 

[AnilD]

A 39-kWh battery is enormous for a house. That is basically an EV-sized battery sitting beside the meter, except it does not come with wheels, seats, or somewhere to hide from the electricity bill.

The business model is clever: install thousands of batteries that customers can use during outages, then aggregate them into a virtual power plant. The concern is that utilities will eventually discover a new monthly fee for owning one.

 

[user556]

An EV sized battery is not the size of an EV.