As energy prices rise and power outages become more frequent amid extreme weather events, Illinois residents now have a new option to manage electricity costs and enhance backup power. Base Power, an Austin, Texas–based startup, recently expanded its residential outdoor battery system to the Chicago area, marking its second market following rapid growth in Texas.

The company’s 40-kilowatt-hour battery units are designed to charge overnight when electricity rates are lower and discharge power back to the grid during peak demand hours. This time-shifting approach aims to reduce customers’ monthly electricity supply charges while also providing up to 36 hours of whole-home backup power during outages. Base Power retains ownership of the batteries, requiring customers only to pay an installation fee—initially discounted to $95 for the first 2,000 Illinois customers—and a 12-year contract, with a $500 early termination fee.

Base Power’s co-founder and CEO, Zach Dell, a former technology investor, explained that the system helps customers run their homes on cheaper, off-peak electricity instead of pricier peak-hour power. The company has secured roughly $1 billion in funding and recruited engineering talent from firms including SpaceX and Tesla. Base Power currently serves 20,000 customers in Texas and plans to increase production capacity substantially with a new factory, aiming to eventually expand nationwide with a focus on single-family suburban homes.

In Illinois, Base Power was approved by the Illinois Commerce Commission in March as an Alternative Retail Electric Supplier, which allows it to provide electricity through existing utilities. The company has set up a warehouse in Bloomingdale and plans to hire dozens of local electricians and technicians. Chicago-based customers are gradually gaining access as the company navigates varying municipal permitting requirements.

Omar Bashqawi, a South Elgin resident and one of Base Power’s first Illinois customers, reported a reduction in his ComEd bills from about $350 per month last summer to roughly $250 this year after switching to an hourly electric rate plan and installing the battery system. He noted that the battery seamlessly provided power during outages, making the investment worthwhile despite the long-term commitment.

The introduction of Base Power’s system comes amid soaring wholesale electricity prices that have significantly increased supply charges for ComEd customers. PJM Interconnection, which manages the region’s power grid, set its annual capacity auction price at $325 per megawatt-day earlier this month—the regulatory maximum—resulting in elevated rates expected to persist through at least 2028. While these supply charges make up about half of customers’ bills, they do not benefit ComEd directly, as the utility earns revenue from delivery fees.

ComEd expressed support for innovative solutions such as battery storage to ease peak demand pressures and reduce supply costs. "We applaud Illinois energy policies like the Clean and Reliable Grid Affordability Act for advancing battery storage and clean energy technologies," said Gil Quiniones, ComEd’s president and CEO.

Consumer advocacy groups have encouraged caution with alternative retail electric suppliers but view Base Power’s offering as a promising development. Sarah Moskowitz, executive director of the Citizens Utility Board, emphasized ongoing monitoring to ensure companies meet their commitments, noting the potential of such programs to improve grid reliability and affordability. Similarly, Luke Metzger of Environment Texas pointed to Base Power’s success in the competitive Texas market as evidence of its viability.

Despite a positive reception, Base Power’s Illinois expansion faces challenges related to municipal permitting. For example, service is available in Highland Park but not in neighboring Glencoe. The company’s website provides detailed availability information and encourages customers in excluded areas to advocate for local approval.

Looking ahead, Dell envisions broad adoption of residential battery backup systems across the United States. “Every neighborhood in America,” he said, “America’s power company is the goal.”