EXECUTIVE SUMMARY
Ormat Technologies has commissioned its first hybrid solar-plus-storage facility, Arrowleaf, in California. The 42 MW solar and 35 MW / 140 MWh battery system operates under a long-term tolling agreement with San Diego Community Power, enabling energy shifting, grid balancing, and capacity availability. Project financing included a hybrid tax equity partnership with Morgan Stanley Renewables, monetizing federal investment tax credits and contributing to over $160 million in 2025 tax credit collections.
PROJECT SNAPSHOT
US-based renewables company, Ormat Technologies Inc., commenced commercial operations of the Arrowleaf solar-plus-battery energy storage project in California in January 2026. The project marked Ormat’s first operational hybrid solar-plus storage facility, expanding its portfolio to approximately 1.7 GW.
The Arrowleaf facility integrates about 42 MW of solar photovoltaic capacity with a 35 MW / 140 MWh battery system configured for 4-hour duration. The configuration enables dispatchable operation by shifting solar generation to periods of higher demand, with the battery and solar assets operating as a single contracted hybrid facility.
The project operates under a long-term tolling agreement with San Diego Community Power, a community choice aggregator in California. Under the structure, San Diego Community Power controls battery dispatch and receives contracted energy and capacity services, while Ormat retains ownership and operational responsibility for the facility.
Arrowleaf reflected Ormat’s project financing structure through a hybrid tax equity partnership closed in December 2025 with Morgan Stanley Renewables. The transaction monetized federal investment tax credits linked to the solar and battery storage components of the project. The arrangement generated about $38 million in upfront proceeds and contributed to more than $160 million in total tax credit collections reported by Ormat during 2025.
From a technical perspective, the battery system provides 4-hours of storage aligned with evening peak demand periods in California. The configuration supports energy shifting, capacity availability, and grid balancing within the tolling agreement framework. The project adds to Ormat’s U.S. energy storage portfolio alongwith its geothermal and solar generation assets.
Commercial operation of Arrowleaf expanded Ormat’s presence in the California power market and provided an operating reference for future hybrid projects. Experience from the facility is expected to inform additional solar-plus-storage and standalone battery developments. The project demonstrates integrated solar and battery storage operations within Ormat’s diversified generation portfolio.