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As NASA works to extend human exploration of the solar system, unprecedented capacity for electrical and thermal energy will be needed to support sustained human presence and the beginning of industrial activity on the Moon. Solar energy is abundant on the lunar surface but extended night hours (up to 350 consecutive hours) and extreme temperature change from daylight to nighttime operation creates complexity for solar power use. Analogous issues arise on Earth, where demand for additional renewable energy generation, including solar, is rising, but better power management, distribution, and energy storage solutions are needed to address intermittency and resiliency, among other issues. To accelerate the development of technologies for power distribution and energy storage that can operate in extreme lunar conditions, NASA’s Centennial Challenges Program launched the Watts on the Moon Challenge in September 2020. Submissions for Phase 1 of the challenge were due in March 2021 and winners were announced in May 2021. This paper provides an overview of the challenge, key technical requirements, outcomes from Phase 1, and an update on Phase 2 of the challenge, which is currently ongoing.