On Thursday, Heron Power, a startup focused on the electrical grid and founded by former Tesla executive Drew Baglino, announced that it has secured $38 million in funding through a Series A round.

The startup, Heron Power, is working on the development of solid-state transformers. These transformers are designed to be more compact and responsive compared to the traditional analog models that have been in use for over a century. As a crucial component of the electrical grid, transformers play a key role in adjusting voltage levels as electricity flows through the system.

Heron Power’s primary focus is on medium-voltage transformers, which have a wide range of applications. These applications include large substations located behind fences, as well as the familiar green metal boxes seen in residential neighborhoods.

According to Heron Power, the company plans to commence initial installations in early 2027. Additionally, it is collaborating with major energy and data center developers to achieve this goal.

The funding round was led by Capricorn Investment Group, with participation from several notable investors, including Breakthrough Energy Ventures, Energy Impact Partners, Gigascale Capital, Powerhouse Ventures, Valor Equity Partners, as well as Tesla co-founder JB Straubel and former Tesla CFO Zach Kirkhorn.