Heron Power Raises $38M to Advance Solid-State Grid Transformers

Heron Power, founded by former Tesla executive Drew Baglino, has raised $38 million in a Series A funding round to develop solid-state transformers aimed at modernizing the electrical grid for the AI and renewable energy era. These transformers, called Heron Link, are designed to replace legacy medium-voltage transformers by offering higher power density, greater efficiency, real-time control, and reduced costs, addressing critical bottlenecks in grid infrastructure amid surging energy demand. The company plans to focus on engineering the product over the next year, with initial field demonstrations expected by mid-2026 and partner installations slated for early 2027. The funding round was led by Capricorn Investment Group with participation from Breakthrough Energy Ventures, Energy Impact Partners, Gigascale Capital, Powerhouse Ventures, Valor Equity Partners, Tesla co-founder JB Straubel, and former Tesla CFO Zach Kirkhorn. Heron Power aims to bridge the gap between rapidly growing energy technologies and grid interconnection challenges by producing domestically manufactured, modular, software-integrated hardware that supports scalable, reliable, and intelligent grid infrastructure. This innovation promises to transform the century-old, analog transformer technology into a more agile, compact, and AI-ready solution essential for the future of electrification and data center power needs.