Ormat’s Solar-Battery Fusion Stuns California’s Energy Market With 42MW Powerhouse

Three power systems in one package—that’s what Ormat Technologies just delivered in California’s Imperial County. The company’s new Arrowleaf project combines a hefty 42 MW solar array with a 35 MW/140 MWh battery system, all conveniently placed next to their existing Brawley geothermal facility. Talk about efficiency. The hybrid powerhouse kicked off operations in January 2026, marking Ormat’s first solar-plus-storage venture in the Golden State.

San Diego Community Power snagged the clean energy through a long-term tolling agreement. Nearly a million customers benefit, with the solar component alone powering about 31,500 homes. The company continues to monitor initiatives for clean and cost-effective energy solutions across the region. The battery system isn’t just for show—it delivers four solid hours of electricity when demand peaks. Smart move using the existing interconnection from their geothermal plant next door.

The financial wizardry behind Arrowleaf is equally impressive. Ormat partnered with Morgan Stanley Renewables in a tax equity deal that netted them $38 million upfront. They also raked in over $160 million in tax credits for 2025. This project benefits from the 30% tax credit offered by the federal government for solar installations. This strategic expansion reflects the company’s commitment to diversifying beyond geothermal into the growing solar and storage markets. Not too shabby for a company expanding beyond its geothermal roots.

This project pushes Ormat’s total renewable portfolio to a whopping 1.7 GW. CEO Doron Blachar couldn’t help but brag about leveraging existing infrastructure. Who wouldn’t? The company’s California footprint is growing fast with their Bottleneck storage facility—an 80 MW/320 MWh beast in Central Valley—already humming under a 15-year agreement with San Diego Gas & Electric.

Ormat’s stock has been on a tear, jumping 47.2% in 2025 to €94.80, now sitting pretty at €98.98. They’re not stopping either. Six more storage projects are under construction, adding another 355 MW/920 MWh to their portfolio.