SolarMax Technology Inc. announced that its subsidiary SolarMax Renewable Energy Provider, Inc. has signed two engineering, procurement and construction agreements totaling $158.3 million for 400 megawatt‑hour battery energy storage systems in Humacao and Ceiba, Puerto Rico. Each contract is valued at approximately $79.15 million and will deliver a combined 400 MWh of storage capacity.
The contracts represent a significant expansion of SolarMax’s utility‑scale portfolio and provide a multi‑year revenue stream through 2027. The company has been grappling with liquidity pressures, a working‑capital deficit of $18.3 million and a net loss of $35 million for 2024. The new projects are expected to improve cash flow and offset declining margins in the residential solar segment, which have been eroded by California’s NEM 3.0 policy.
In addition to EPC services, SolarMax will acquire a 9 % equity stake in each project entity, aligning its interests with project success and creating a potential upside if the projects perform well. The contracts also position the company to capture growth in Puerto Rico’s energy‑storage market, where grid reliability and renewable integration drive demand for large‑scale storage.
CEO David Hsu said the wins “highlight SolarMax’s growing position in the utility‑scale energy storage market” and that the agreements “will significantly strengthen our forward revenue visibility, adding a substantial multi‑year revenue stream through 2027.” He added that the company’s selective equity participation “reinforces our commitment to build durable, long‑term shareholder value.”
The announcement was well received by investors, reflecting confidence in SolarMax’s strategic pivot toward utility‑scale storage and its ability to secure large contracts that expand its backlog and improve revenue visibility, despite ongoing liquidity challenges.
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