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The former head of Tesla Energy has raised $232 million for Lunar Energy, a startup that competes with Tesla's home battery business. 

Why it matters: The startup joins dozens launched by former Tesla execs that are making waves in the energy sector. 

Lunar founder Kunal Girotra left the EV maker five years ago to launch Lunar.

Driving the news: Lunar Energy has closed $232 million in financing that includes a Series D financing of $102 million led by B Capital and Prelude Ventures announced Wednesday, and a previously unannounced $130 million Series C led by Activate Capital. 

DCVC, Piva Capital, Leitmotif, Sunrun, Itochu Corporation, and Q Capital Partners participated in the two investments.

How it works: Mountain View, Calif.-based Lunar Energy has developed a home battery system that can pair with solar and can help homeowners lower their energy bills. 

The company also uses software that aggregates capacity from its batteries, as well as other sources, and sells that as a virtual power plant (VPP) to utilities and commercial customers. 

"I thought one fast way to both increase access to cheap energy for homes and businesses and reduce prices dramatically was giving every home a personalized power plant," says Girotra. 

What's next: Lunar Energy plans to scale outside of its home battery base in California to states like Texas, Florida and Utah.

The big picture: Home batteries and VPPs are having a moment as electricity prices rise, energy demand soars, grids face instability, and batteries and solar get ultra cheap.  

Zoom in: Tesla has long been a breeding ground for energy founders as investors place a premium on Tesla alums. 

Tesla's first principles mindset lets engineers think creatively to tackle energy problems. Other Tesla Mafia startups include Sila, Amperesand, Heron Power, Redwood Material, Span and Range Energy.

Yes, but: Not all Tesla Mafia startups compete directly with Tesla. 

Tesla alum startup books $232M to take on Tesla

Its founder is the former head of Tesla Energy.

Illustration of a battery icon with hundred dollar bills as the bars indicating that it's full. 

The former head of Tesla Energy has raised $232 million for Lunar Energy, a startup that competes with Tesla&#x27;s home battery business. Why it matters: The startup joins dozens launched by former Tesla execs that are making waves in the energy sector. <ul><li>Lunar founder Kunal Girotra left the EV maker five years ago to launch Lunar.</li></ul>

Tesla alum startup books $232M to take on Tesla

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