Octopus Energy and Lunar Launch All-in-One Home Battery Plan in Texas

Octopus Energy and Lunar Energy Introduce Simplified Home Battery Plan in Texas

Texas’ deregulated electricity market offers customers numerous choices, from providers to contract types, but adding a home battery complicates the decision-making process. To streamline this, Octopus Energy, a U.K.-based retail electricity provider, and Lunar Energy, a residential battery manufacturer and virtual power plant provider, have announced a partnership to simplify the process.

On Wednesday, the two companies unveiled a bundled package for Texas ratepayers: a three-year fixed-rate electricity contract, a 30-kilowatt-hour (kWh) home battery, and automatic enrollment in a statewide virtual power plant (VPP). This marks the first time Octopus Energy is deploying standalone home batteries in the U.S. without requiring rooftop solar.

Key Features of the New Plan

• Three-year fixed-rate contract for electricity
• 30-kWh home battery with no upfront cost
• $45/month lease for the battery
• Option to purchase the battery after 10 years
• Automatic participation in a statewide VPP
• Access for all ratepayers, regardless of rooftop solar or existing Octopus Energy customers

Why Texas? A Strategic Market for Home Batteries

Nick Chaset, CEO of Octopus Energy’s U.S. arm, highlighted Texas’ deregulated market as a key driver for the partnership. "As the price of batteries has come down and the data center dynamics really take shape, I think we’ve gained conviction that Texas — and frankly the rest of the U.S. — is ripe for deploying batteries at scale in households," Chaset stated.

Octopus Energy already operates in Texas’ competitive retail electricity market, which allows consumers to choose their provider. This structure made Texas an ideal first market for the new bundled plan.

How the Virtual Power Plant Works

Lunar Energy will provide the battery hardware and initially manage the VPP software to coordinate the statewide network of home batteries. The system is designed to optimize energy use by:

• Charging batteries when electricity prices are low
• Discharging power to the grid during peak demand, reducing reliance on fossil fuel peaker plants
• Providing backup power during outages, keeping critical appliances running for up to a day

Octopus Energy’s platform and subsidiary, Kraken Technologies, currently manages what the company calls "the world’s largest virtual power plant of residential assets." The partnership with Lunar may lead to further software platform discussions as the program expands.

Financial and Resiliency Benefits for Customers

Customers will benefit from the plan’s three-year term, which Chaset noted is particularly attractive in Texas’ market. The fixed-rate contract ensures price stability, while the battery lease and VPP participation provide long-term savings and energy resilience.

The plan is open to all Texas ratepayers, whether they have rooftop solar or are existing Octopus Energy customers. Lunar will handle the battery hardware, and the VPP software will initially be provided by Lunar, with potential future adjustments as the partnership evolves.

"As the price of batteries has come down and the data center dynamics really take shape, I think we’ve gained conviction that Texas — and frankly the rest of the U.S. — is ripe for deploying batteries at scale in households."

Looking Ahead: Scaling Home Batteries Nationwide

This partnership represents a significant step toward making home batteries more accessible and affordable for Texas residents. As battery costs continue to decline and demand for clean energy solutions grows, the model could expand to other states in the future.