Ormat Technologies has begun commercial operations of its Arrowleaf solar and battery storage project in California. The Ormat stock is on the rise.
The project is the company’s first hybrid solar-plus-storage initiative and represents a strategic step to expand its business beyond geothermal energy. The facility combines approximately 42 MW of solar capacity with a four-hour battery storage system with a capacity of 35 MW and a storage capacity of 140 MWh.
Arrowleaf is operated under a long-term tolling agreement with the municipal utility San Diego Community Power. According to the company, the project is expected to provide clean energy to nearly one million end customers.
With the commissioning, Ormat’s operational portfolio grows to around 1.7 GW. The project is also part of a hybrid tax-equity structure: in December 2025, Ormat entered into a corresponding partnership with Morgan Stanley Renewables and monetized the project’s tax incentives, resulting in approximately 38 million US dollars flowing directly to the company.
Arrowleaf underscores the importance of the storage segment for Ormat’s strategic direction. In addition to geothermal energy, the company is systematically expanding its involvement in battery storage and solar energy and aligning its growth strategy with the coming years.
CEO Doron Blachar described Arrowleaf as an important milestone. “With this project’s tax benefits having been monetized in December 2025, we successfully collected over $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,” said the CEO.
