Base retail and wholesale hedge

This setup turns power price volatility from a one way risk into a two sided earnings engine. Base loses money on its fixed retail book when ERCOT spot prices jump, because it still has to buy power at those higher market prices, but the same price spike makes each battery discharge worth more in the wholesale market. The battery fleet is not just backup hardware, it is a built in natural hedge for the retail plan.1 2 3 4 5

• In ERCOT, most households on fixed rate plans do not see wholesale spikes directly, but retail electric providers still do because they procure energy in wholesale markets. That means a retailer without flexible supply gets squeezed exactly when a battery owner can earn the most from discharge.2 3 4
• Base is closer to a gentailer than a normal battery installer. A normal installer gets paid once for hardware. Base also collects monthly battery fees, captures retail margin from serving the home, and monetizes the same installed battery as grid supply when prices rise.1 5
• The Austin Energy deal shows how this stack compounds. Austin Energy said in May 2026 that it contracted for 40 MW of residential batteries that it can dispatch during peak demand or price volatility. That adds a fixed capacity style payment on top of retail margin and wholesale trading from the same fleet.1 6

Going forward, the winner in home batteries is likely to be the company that controls the customer bill and the battery dispatch at the same time. That combination lets Base price retail power more aggressively, survive ERCOT volatility better than a standalone retailer, and keep layering new grid payments onto an already installed fleet.1 5 6