Ormat Technologies has begun commercial operation of its Arrowleaf solar‑plus‑storage facility in California, a 42‑MW solar array paired with a 35‑MW/140‑MWh battery system that delivers power under a long‑term tolling agreement with San Diego Community Power. The project, located adjacent to Ormat’s existing Brawley geothermal plant, serves nearly one million customers and marks the company’s first hybrid renewable asset.
The Arrowleaf milestone expands Ormat’s operating portfolio to roughly 1.7 GW, a key step in the company’s strategy to diversify beyond geothermal. By adding a solar‑plus‑storage platform, Ormat gains a new revenue stream that can provide grid‑support services and merchant power generation, positioning it to capture growing demand for flexible, clean energy in California and beyond.
A hybrid tax‑equity partnership with Morgan Stanley Renewables closed in December 2025, providing about $38 million in upfront proceeds and enabling Ormat to monetize over $160 million in tax credits collected in 2025. The cash‑flow boost and tax‑credit revenue strengthen the company’s balance sheet and support continued investment in its renewable portfolio.
Ormat’s Q3 2025 results illustrate the broader impact of this diversification. Revenue rose 17.9% to $249.7 million, driven by a 66.6% jump in the Product segment and a 108.1% surge in Energy Storage, while the Electricity segment grew modestly 1.5%. The company’s net income increased 9.3% to $24.1 million, reflecting the combined effect of higher segment performance and the tax‑credit benefit from Arrowleaf.
CEO Doron Blachar emphasized the strategic significance of the project: “Arrowleaf marks a major milestone for Ormat, as it is our first hybrid solar and energy storage project, and brings our total operating portfolio to approximately 1.7 GW. With the project’s tax benefits monetized in December 2025, we collected over $160 million in tax credits, strengthening our balance sheet and cash‑flow trajectory while supporting continued growth across all segments.”
The market reacted positively, with Ormat’s shares rising 0.87% on the day of the announcement. Investors viewed the commercial operation and the associated tax‑credit revenue as evidence of Ormat’s successful execution and its ability to generate new, high‑margin revenue streams in the renewable energy sector.
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