Ormat Technologies Launches Arrowleaf, Its First Hybrid Solar And Battery Storage Project In California With 42 MW Solar And 35 MW/140 MWh Storage

Ormat Technologies Inc., a leading company in geothermal and renewable energy, announced the start of commercial operations for its Arrowleaf solar and battery energy storage project in California. This facility is Ormat’s first hybrid solar-plus-storage project, representing a key milestone in the company’s strategic growth and development plans. The Arrowleaf project features approximately 42 megawatts (MW) of solar generation capacity and 35 MW/140 megawatt-hours (MWh) of energy storage.

It operates under a long-term tolling agreement with San Diego Community Power, providing clean, renewable, and cost-effective electricity to nearly one million customers in the region. The project also reflects Ormat’s disciplined approach to capital management. Through a hybrid tax equity partnership with Morgan Stanley Renewables Inc., the company was able to monetize the project’s investment tax credits, generating approximately $38 million in upfront proceeds.

Doron Blachar, Chief Executive Officer of Ormat Technologies, highlighted the significance of Arrowleaf, noting that it is the company’s first hybrid solar and energy storage project and brings Ormat’s total operating renewable energy portfolio to approximately 1.7 gigawatts. He added that the monetization of Arrowleaf’s tax benefits in December 2025 enabled the company to collect over $160 million in tax credits for the year, exceeding its full-year target. According to Mr. Blachar, this achievement strengthens Ormat’s balance sheet and cash flow, while supporting continued growth across all business segments. He also noted that the commercial operation of Arrowleaf sets a positive trajectory for 2026 and contributes to the company’s progress toward its 2028 growth objectives.