Fuse Energy raises £52.4m to smooth grid peaks with home batteries
This article covers Fuse Energy, a London-based energy startup, which has closed a £52.4m ($70m) growth round to accelerate international expansion and product launches. The funding will speed market entry into Ireland, Spain and the United States and the rollout of home energy hardware and a grid-balancing platform, supporting households, data centres and other electricity consumers facing rising peak demand and grid strain.
Fuse Energy, a London-based energy startup, has closed a major growth round to speed international expansion and product launches as electricity demand rises from data centres, electric vehicles and wider electrification. The move signals continued investor interest in companies that link generation, supply and customer-facing products to manage rising system strain.
Why it matters
Electricity demand is changing fast. Large AI data centres, rapid adoption of electric vehicles and efforts to replace fossil-fuel heating are all pushing peak loads and creating new commercial pressures across grids in the UK and beyond. Firms that can coordinate generation, storage, retail supply and customer behaviour have a clearer path to smoothing peaks, cutting costs and improving resilience.
Fuse says its vertically integrated model — building renewable sites, running generation, trading and retailing power, and selling consumer hardware — reduces layers of cost that can accumulate when suppliers outsource large parts of the value chain. The company estimates it can deliver electricity at roughly 10% lower cost than incumbents and claims this can translate to household savings of up to £200 a year. Those figures, if sustained at scale, matter for affordability and political pressure on energy policy.
Inside the product
Fuse is developing several complementary products aimed at shifting consumption and reducing costs. Its headline initiative is The Energy Network, a grid-balancing platform scheduled to launch in January 2026 that will incentivise customers to move usage to off-peak periods. The company is also preparing consumer hardware: lower-cost micro solar and home battery kits intended to put generation and storage inside the home.
On metrics, Fuse reports annual recurring revenue of £299.1m ($400m), eightfold year-on-year growth and cash-flow positivity. The company says its UK base already serves more than 200,000 households. Fuse contrasts its full-stack approach with competitors that rely on third-party generation and trading to meet supply obligations.
When competitors are mentioned: Octopus Energy is a major UK retail supplier known for its technology-driven platform but has historically relied on third-party generation and wholesale markets; Bulb, before its government-backed acquisition, similarly depended on external generation and traders. Fuse positions ownership of infrastructure as a way to reduce operational friction and pricing volatility.
Who are the investors?
Fuse has raised £52.4m ($70m) in a round led by Balderton Capital and Lowercarbon Capital, taking the company to a reported valuation of £3.7bn ($5bn) in its third year of trading. The new capital is earmarked for international expansion into Ireland, Spain and the United States, the rollout of home energy hardware and completion of The Energy Network.
The participation of Balderton, a large European venture firm, and Lowercarbon, a US climate-focused investor, signals interest from both growth-stage and climate-specialist backers in vertically integrated energy businesses. The deal follows broader investor appetite for companies that combine renewables deployment with retail and demand-side services as grids electrify and flexibility becomes more valuable.
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Founder perspective
Fuse was founded in 2022 by Alan Chang, chief executive, and Charles Orr. Both founders previously held senior roles at Revolut and have framed their approach as applying fintech-style operational discipline to energy: tighter cost control, rapid product iteration and vertical integration to remove intermediaries. That background is being pitched as a way to scale quickly in a capital-intensive sector while preserving unit economics.
The company says it will use the new funding to accelerate product launches and market entry outside the UK, where regulatory and grid conditions vary and will be an immediate test of its claims about cost advantages and operational control.
The bigger picture
The Fuse story sits at the intersection of several broader trends: electrification of transport and heat, the growing role of demand-side flexibility in grid stability, and investor interest in companies that can couple generation with retail and digital services. For the UK and Europe, successful commercial pilots that reduce household bills and flatten peaks could influence policy on grid upgrades, smart meter rollout and incentives for home storage and solar.
As Fuse moves into new markets, it will face regulatory variation, competition from established suppliers and the capital intensity of renewable deployment. How quickly it can translate pilot savings into durable margin and customer trust will determine whether vertical integration is a replicable path for other startups in the sector.
The outcome will matter beyond one company: Europe’s transition to electrified heating, transport and computing will require new business models that align generation, networks and customer behaviour. Investors and policymakers alike will be watching whether vertically integrated approaches can deliver cheaper, cleaner energy at scale.
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