Switched Source’s Power Electronics Add Capacity to 12 Utility Grids

The most expensive way to add capacity to an electricity grid is to build more of it. The second most expensive way is to do nothing while demand from electric vehicles and heat pumps crashes into aging infrastructure. Switched Source, a Chicago-based company founded in 2016, is betting there is a profitable middle lane: a power electronics device that makes the existing grid act like it is bigger.

Its core product, called Phase-EQ, is a medium-voltage device that sits on a distribution line and continuously shifts power between the three electrical phases. Think of it as an intelligent traffic system for electrons, dynamically rerouting power from underused lanes to congested ones. The company claims field data shows these deployments can increase a circuit’s load-serving capacity by 10% to 25% [FinancialContent, Oct 2026]. For a utility staring down a multi-million dollar, multi-year feeder rebuild, that is a compelling pause button.

The Wedge: Capacity Without Concrete

The classic utility playbook for handling load growth is civil engineering: new poles, new wires, new substations. It is slow, disruptive, and capital-intensive. Switched Source’s wedge is offering a faster, cheaper alternative that defers that capital expenditure. A single Phase-EQ deployment, the company says, can free up enough capacity on a circuit to serve approximately 100 to 200 additional homes without any new physical infrastructure [Pulse2, Oct 2026].

For a municipal utility or a cooperative facing sudden load growth from a new data center or housing development, that is not a trivial offer. The value proposition is pure unit economics: the cost of the hardware and its installation, which the company says takes 14 to 20 weeks [Clean the Sky, Unknown], versus the cost and multi-year timeline of a traditional upgrade. It is a software-update mindset applied to hardware that has not been updated in decades.

Traction in the Field

Switched Source is not a concept on a whiteboard. The company reports its technology is operating across twelve utility service areas, from Alaska to Florida [FinancialContent, Oct 2026] [POWER Magazine, Unknown]. It has logged over 150,000 field operating hours [FinancialContent, Oct 2026]. While the company is private about its customer list, early deployments include a municipally owned utility in Sherburne, New York, sponsored by the New York State Energy Research and Development Authority (NYSERDA) [NYSERDA, Unknown].

The commercial momentum appears tangible. The company claims more than $115 million in electric-utility projects and approximately $80 million in committed contract revenue [Switched Source, Unknown] [MSU Innovation Center, Apr 2026]. U.S. installations grew 60% in 2025, according to a company announcement [Business Wire, Jan 2026]. This traction has attracted strategic capital from industry players who would also be customers and channel partners.

Funding and Strategic Backers

Switched Source has raised over $26 million in disclosed funding, a mix of venture capital and significant government grants. The latest $17 million round in October 2026 was led by Cubit Capital and included a roster of strategic investors straight from the energy industrial complex: ABB, Emerald Technology Ventures, Red Cedar Ventures, Southern States, and Southwire Company [Business Wire, Oct 2026].

Before that, the company secured a $8.56 million SCALEUP grant from the Department of Energy’s ARPA-E program and a $500,000 DOE award [NBC Chicago, Nov 2025]. This funding stack signals both technical validation and a path to market through partners who understand utility procurement cycles.

DOE Award (Unknown) | 0.5 | M USD
ARPA-E Grant (Unknown) | 8.56 | M USD
Venture Round (Oct 2026) | 17 | M USD

The Founder Profile: Engineers Who Speak Business

The co-founders, Charlie Murray (CEO) and Lane Nelson (COO), are both University of Chicago Booth MBA graduates and finalists in the school’s New Venture Challenge [University of Chicago Booth, Unknown]. More critically, Murray is a licensed Professional Engineer with bachelor’s and master’s degrees in electrical engineering [LinkedIn - Mesh, Unknown]. This hybrid background,deep technical credibility paired with business training,is almost a prerequisite for selling complex hardware into conservative, regulated utilities. They are not just pitching an app; they are proposing a modification to critical infrastructure that must work flawlessly for decades.

The Risks on the Line

For all its promise, Switched Source’s path is wired with the high-voltage risks inherent in grid hardware. The sales cycles are long, often measured in years, and purchase decisions are made by committees wary of unproven technology on their networks. While the reported $80 million in committed revenue is a strong signal, converting that backlog into recognized, recurring income is the next hurdle.

• The replacement sale. Each deployment solves a local congestion problem, but it is not inherently a recurring revenue stream. The company must prove its next product, the Tie Controller for managing flow between circuits, and demonstrate that utilities will standardize on its technology for future upgrades.
• The scaling bottleneck. Manufacturing, deploying, and supporting physical devices across the continent is a different operational challenge than scaling software. The company’s 2025 announcement of a $5 million facility investment suggests it is preparing for this [Switched Source, Mar 2025].
• The incumbent response. Large electrical equipment giants like Siemens, GE, and Schneider Electric have their own grid modernization portfolios. Switched Source’s bet is that its focused, dynamic power-flow control is a niche those giants move too slowly to capture.

The company’s most plausible answer to these risks is embedded in its investor list: partnerships with strategic players like ABB and Southwire can provide manufacturing muscle, distribution channels, and the stamp of legitimacy needed to accelerate sales.

The Capacity Math

The real test for any grid-enhancing technology is the dollars-per-kilowatt calculus. If a utility needs to add 5 megawatts of capacity to a feeder, Switched Source must be cheaper than the alternative. A back-of-the-envelope estimate: if a traditional rebuild costs $2 million per mile and the Phase-EQ can defer a one-mile rebuild for five years, the utility saves the net present value of that $2 million expenditure today. Even at a conservative 10% capacity gain on a heavily loaded 20 MW circuit, that is 2 MW of freed-up power. At an all-in cost of a few hundred thousand dollars per device (estimated), the economics can pencil out quickly, especially where construction is difficult or permitting is slow.

Switched Source is not trying to beat the flashy startups promising grid-scale batteries or virtual power plants. Its competition is the backhoe and the copper wire. Its success will be measured in deferred capital budgets and circuits that quietly, reliably handle more than they were designed for. For utilities under pressure, that is a very compelling kind of magic.

Sources

1. [Business Wire, Oct 2026] Switched Source Secures Over $17 Million to Help Utilities Add Grid Capacity Faster | https://www.businesswire.com/news/home/20261013857324/en/Switched-Source-Secures-Over-$17-Million-to-Help-Utilities-Add-Grid-Capacity-Faster
2. [FinancialContent, Oct 2026] Switched Source Secures Over $17 Million to Help Utilities Add Grid Capacity Faster | https://www.financialcontent.com/article/bizwire-2026-10-13-switched-source-secures-over-17-million-to-help-utilities-add-grid-capacity-faster
3. [Pulse2, Oct 2026] Switched Source Raises More Than $17 Million To Expand Grid Capacity Technology | https://pulse2.com/switched-source-raises-more-than-17-million-to-expand-grid-capacity-technology/
4. [NBC Chicago, Nov 2025] Start-up says it can help cities make the most of green energy | https://www.nbcchicago.com/news/national-international/technology-electric-grids-capacity-renewable-energy/3818553/
5. [Business Wire, Jan 2026] Switched Source U.S. Installations Grew 60% in 2025 | https://www.businesswire.com/news/home/20260120367362/en/Switched-Source-U.S.-Installations-Grew-60-in-2025
6. [MSU Innovation Center, Apr 2026] Switched Source Unlocks Grid Capacity | https://innovationcenter.msu.edu/switched-source-unlocks-grid-capacity/
7. [NYSERDA, Unknown] Innovator Stories: Switched Source | https://www.nyserda.ny.gov/All-Programs/Innovation-at-NYSERDA/Innovator-Stories/Switched-Source
8. [University of Chicago Booth, Unknown] Article on Switched Source founders | https://www.chicagobooth.edu/magazine/what-can-be-done-to-strengthen-the-us-power-grid
9. [POWER Magazine, Unknown] The POWER Interview: Upgrading the Grid Key to Support Electrification | https://www.powermag.com/the-power-interview-upgrading-the-grid-key-to-support-electrification/
10. [Clean the Sky, Unknown] Grid-Enhancing Distribution Automations | https://www.cleanthesky.com/innovation/switched-source
11. [Switched Source, Mar 2025] Switched Source Expands Manufacturing, with $5 Million Facility Investment | https://www.switchedsource.com/news/article/current/2025/03/20/100023/switched-source-expands-manufacturing-with-5-million-facility-investment-to-meet-utility-demand-for-grid-modernization
12. [LinkedIn - Mesh, Unknown] Profile data for Charles Murray | Source from research snippets
13. [Switched Source, Unknown] Company website | https://www.switchedsource.com/