Switched Source, a developer of power-flow control technologies for electric distribution grids, has secured more than US$17 million in a funding round led by Cubit Capital. The round includes participation from ABB, Emerald Technology Ventures, Red Cedar Ventures, Southern States, and Southwire Company. The investment will help utilities unlock capacity from existing distribution infrastructure as electricity demand continues to rise, and it comes at a time when the industry needs faster grid capacity solutions.
Funding Round and Strategic Investors
The investment round is led by Cubit Capital, an early-stage venture capital firm focused on enduring infrastructure and platforms for human flourishing. Strategic participation from ABB, Southern States, and Southwire highlights industrial interest in grid-enhancing technologies that integrate with existing electrical systems. Switched Source views the capital as a way to scale production, accelerate utility deployments, and extend its utility solution portfolio.
Manufacturing and Team Expansion
Switched Source is expanding its Chicago headquarters with new manufacturing, quality, and supply chain roles to support growing utility adoption. The company plans to increase production capacity for its Phase-EQ devices and strengthen testing capabilities ahead of a wider rollout. These operational investments are intended to shorten delivery timelines, support a broader pipeline of deployments across North America, and continue development of additional distribution system solutions.
Phase-EQ Technology Overview
The Phase-EQ is an automated power-flow control device that dynamically balances power across the three phases on distribution circuits. This balancing action helps utilities improve reliability and power quality while unlocking additional load-serving capacity from assets already in service. The system is designed to manage volatile and uneven loads created by electrification, including electric vehicle charging and heat pump adoption.
Proven Field Results
Switched Source reports that Phase-EQ deployments have surpassed 150,000 run hours across twelve utility service areas. Field data from active deployments show load-serving capacity increases of 10% to 25%, a meaningful boost for constrained distribution feeders. Utility partners are using the technology to support grid reliability without immediately building new substations, reconductoring existing lines, or committing to costly multiyear upgrades.
Speed and Cost Effectiveness
Each Phase-EQ deployment can bring 100 to 200 additional homes online without building new infrastructure, addressing constraints driven by electric vehicle charging and heat pump adoption. Total lead time from purchase order to site activation typically ranges from fourteen to twenty weeks, compared with one to three year timelines for many traditional distribution upgrades. This speed offers utilities a capital-efficient way to meet demand while preserving flexibility for long-term planning.
Utility and Public Sector Momentum
The funding builds on Switched Source's involvement in a five-year, US$99 million project through the U.S. Department of Energy's Grid Resilience and Innovation Partnerships Program. That project will deploy Phase-EQ units in the Southeast to support storm restoration, helping utilities rebalance power as feeders are reconfigured and restore service more quickly. The work also aims to reduce the risk of overloading constrained power lines during recovery operations.
Switched Source plans to build on its field experience and strategic partnerships to support broader adoption of capital-efficient grid solutions. Industry partners and investors see the company's approach as a practical response to rising electricity demand and increasing distribution grid complexity. With major utility rollouts underway, the new funding positions Switched Source to help electric providers meet load growth while improving reliability, affordability, and resilience.