Ormat Technologies Inc., a US-based geothermal and renewable energy company, has announced the commencement of commercial operations of its Arrowleaf solar and battery energy storage project in California, marking the company’s first hybrid solar-plus-storage facility and a key milestone in its strategic expansion into integrated renewable energy solutions.
The Arrowleaf project comprises approximately 42 MW of solar generation capacity paired with a 35 MW/140 MWh battery energy storage system. With the addition of this facility, Ormat’s total operating renewable energy portfolio has increased to nearly 1.7 GW. The project operates under a long-term tolling agreement with San Diego Community Power, supplying clean, reliable, and cost-effective electricity to nearly one million customers across the region.
The hybrid configuration allows solar energy generated during daylight hours to be stored and dispatched when demand is higher, strengthening grid reliability and supporting California’s clean energy goals. The Arrowleaf project reflects Ormat’s broader strategy of complementing its geothermal and recovered energy generation portfolio with solar and storage assets.
The company has also highlighted the project’s financial structuring as a key achievement. Ormat entered into a hybrid tax equity partnership with Morgan Stanley Renewables Inc., enabling the monetization of investment tax credits associated with the project. This structure generated approximately USD 38 million in upfront proceeds, supporting Ormat’s disciplined approach to capital management.
Commenting on the development, Doron Blachar, Chief Executive Officer of Ormat Technologies, said, “With this project’s tax benefits having been monetized in December 2025, we successfully collected over USD 160 million of tax credits in 2025, exceeding our full-year target. This accomplishment further strengthens our balance sheet and cash flow trajectory while supporting continued growth across all of our segments.”
Blachar added that Arrowleaf represents an important milestone for the company as its first hybrid solar and energy storage project, and noted that the start of commercial operations sets a positive trajectory for 2026 while supporting Ormat’s long-term growth objectives through 2028.
Ormat Technologies is primarily focused on geothermal and recovered energy generation, with expanding capabilities in solar power and battery energy storage. The company’s total generating portfolio stands at approximately 1,695 MW, including around 1,310 MW of geothermal and solar generation assets across the United States, Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, along with about 385 MW of energy storage capacity in the US.
The commissioning of the Arrowleaf project underscores Ormat’s continued evolution into a diversified renewable energy platform, combining proven geothermal expertise with emerging solar and storage technologies to deliver resilient and sustainable power solutions.
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