Michael Dell’s son Zach Dell aims to install a Base Power home battery system in every backyard in America; and follows what is called Costco model

​Michael Dell’s son is expanding its battery business. Zach Dell, the co-founder of the home battery company Base Power, says he wants to install a battery system in neighbourhoods across the US. In an interview with Fortune, he said: “We want to bring Base to every neighbourhood in America over time.” The company follows what Dell describes as a Costco model, offering low upfront installation costs and a monthly membership instead of selling high-priced battery systems.​The expansion comes as Base Power announced a $1 billion Series D funding round, valuing the company at $13 billion, up from $4 billion in less than a year. Alongside its US expansion plans, Zach Dell said the company also has ambitions to enter markets including the UK, Germany and Australia, with its business model centred on low upfront installation costs and monthly membership fees rather than large one-time equipment purchases.​

Zach Dell’s Base Power to replace high upfront battery costs with a membership model

​Founded in 2023, Base provides electricity services alongside home battery systems that act as backup power during outages. Instead of selling customers a battery system costing around $15,000 or more, the company charges an installation fee of up to $695 and a monthly membership fee of $19.​Dell described the approach as similar to the Costco model, in which recurring memberships, rather than high product margins, support the business.​“Our business model, which is very unique, is that we’re really an infrastructure company. We own and operate the assets in the wholesale power markets. That’s really where we make our money, not by trying to sell the consumer something at a really high-margin upfront cost,” Dell said.​According to the company, the batteries also return electricity to the grid when demand is high, which it says can help lower customers’ overall electricity costs.​

Customer base and manufacturing expansion

​Base said it has grown from installing one battery system per day to more than 100 daily, serving over 30,000 customers. Earlier this year, the company opened its first battery manufacturing facility, Base Factory 1, in Austin, while a second, larger factory is expected to be completed in 2027.​The company initially launched in Texas and has since expanded into Illinois. Dell said Base plans to enter additional US states next year by either operating in deregulated electricity markets or partnering with monopoly utilities.​The Series D funding round was co-led by Ribbit Capital, Addition, Valor Equity Partners and JPMorgan Chase’s Strategic Investment Group. Existing investors, including Thrive Capital, Andreessen Horowitz (a16z), Lightspeed, Trust Ventures, and CapitalG, also participated.​

Batteries designed for homes and the power grid

​Before opening its own manufacturing facility, Base relied on third-party battery systems. The company now produces batteries designed specifically for residential backup power and grid support rather than electric vehicle charging.​“This battery is designed to be a grid resource. It’s bigger, it installs faster, it switches over cleaner, it’s more powerful, it has more duration,” Dell said.​Base currently offers one- and two-battery systems. According to Dell, the company’s latest battery stores 39.2 kilowatt-hours of electricity, allowing homes to continue receiving power during outages that last up to two or three days, depending on usage. Dell said the batteries are charged when electricity prices are low and supply power back to the grid when demand and prices increase.​To support expansion in Illinois, Base has also introduced promotional installation pricing for some customers, reducing the installation charge from the standard $695 to as low as $95 in selected cases. Dell said the company expects to continue adjusting pricing as it enters additional markets.