Ormat Technologies Commenced Commercial Operation of Arrowleaf, Its First Hybrid Solar-Plus-Storage Project

Rhea-AI Summary

Ormat Technologies (NYSE: ORA) commenced commercial operation of Arrowleaf, its first hybrid solar-plus-storage project in California on Jan 6, 2026. The facility comprises approximately 42 MW of solar and 35 MW / 140 MWh of battery storage and operates under a long-term tolling agreement with San Diego Community Power, serving nearly 1 million customers.

The project expanded Ormat’s operating portfolio to about 1.7 GW. A hybrid tax equity partnership with Morgan Stanley Renewables closed in December, producing approximately $38 million of upfront proceeds and contributing to > $160 million of tax credits collected in 2025.

Positive

• First hybrid solar-plus-storage project added to portfolio
• 42 MW solar capacity and 35 MW / 140 MWh storage commissioned
• Project operates under a long-term tolling agreement with San Diego Community Power
• $38 million of upfront proceeds from hybrid tax equity partnership
• Operating portfolio increased to ~1.7 GW
• $160+ million of tax credits collected in 2025, exceeding target

Negative

• None.

Key Figures

Arrowleaf solar capacity 42MW Hybrid solar-plus-storage facility in California

Arrowleaf storage capacity 35MW/140MWh Battery energy storage at Arrowleaf project

Operating portfolio 1.7 gigawatts Total operating portfolio after Arrowleaf launch

Arrowleaf ITC proceeds $38 million Upfront proceeds from hybrid tax equity partnership

Tax credits collected over $160 million Investment tax credits monetized in 2025

Customers served nearly 1 million Customers under tolling agreement with San Diego Community Power

Q3 2025 revenue $249.7M Total revenue, up 17.9% YoY

Q3 2025 net income $24.1M Net income attributable to stockholders, up 9.3% YoY

Market Reality Check

$116.50 Last Close

Volume Volume 579,505 is near the 20-day average of 586,412 (relative volume 0.99). normal

Technical Price $114.72 is trading above the 200-day MA at $91.02 and 1.91% below the 52-week high.

Peers on Argus

ORA gained 0.87% while key renewable peers were mixed: several declined (e.g., CWEN -3.08%, FLNC -3.8%) and one posted a similar gain (ENLT +0.87%), supporting a stock-specific reaction to the Arrowleaf news rather than a broad sector move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 03	Earnings results	Positive	+1.4%	Strong Q3 revenue growth, higher storage sales, and raised 2025 guidance.
Oct 27	Strategic partnership	Positive	+0.3%	EGS-focused partnership with SLB to scale geothermal asset development.
Oct 06	Earnings call notice	Neutral	+2.8%	Announcement of upcoming Q3 2025 results release and conference call.
Sep 02	Sustainability report	Positive	+0.2%	2024 sustainability report highlighting major CO2e avoidance and ESG progress.
Sep 02	New storage project	Positive	-1.0%	Commercial operation of Lower Rio 60MW/120MWh storage and ITC monetization.

Pattern Detected

Recent operational and strategic announcements, including new storage projects and partnerships, have generally been followed by modestly positive price reactions, with one divergence on a storage project launch.

Recent Company History

Over the last few months, Ormat reported strong Q3 2025 results with revenue of $249.7M and raised 2025 guidance to $960M–$980M and adjusted EBITDA of $575M–$593M. It expanded its storage footprint with the 60MW/120MWh Lower Rio facility and advanced strategy via an EGS partnership with SLB. Sustainability achievements, including avoiding 2,488,811 metric tons of CO2e, reinforced its ESG profile. Today’s Arrowleaf hybrid solar-plus-storage launch extends this pattern of capacity growth and tax-credit monetization.

Market Pulse Summary

This announcement highlights Ormat’s first hybrid solar-plus-storage project, Arrowleaf, adding 42MW of solar and 35MW/140MWh of storage under a long-term tolling agreement. The project lifts the operating portfolio to roughly 1.7GW and contributed to collecting over $160M of tax credits in 2025. In context of earlier storage additions and strong Q3 2025 results, investors may watch execution on further hybrid projects, contract performance, and progress toward stated 2028 growth targets.

Key Terms

battery energy storage technical

"Arrowleaf solar and battery energy storage project in California"

A system that stores electrical energy in rechargeable batteries so power can be used later, like a large-scale rechargeable power bank for homes, businesses, or the electricity grid. It matters to investors because it helps smooth out supply and demand, lets operators sell power when prices are higher, backs up critical services during outages, and supports more renewable generation — all of which can create new revenue streams and reduce operational risk.

investment tax credits financial

"monetize the project’s investment tax credits through a hybrid tax equity partnership"

Investment tax credits are government discounts on an investor’s tax bill tied to putting money into certain projects or assets, effectively returning a portion of the upfront cost as a tax saving. They matter to investors because they improve after-tax returns and can make otherwise marginal projects more profitable—like a manufacturer offering a coupon that lowers the net price of a major purchase—so they influence valuation, cash flow forecasts and investment decisions.

hybrid tax equity partnership financial

"through a hybrid tax equity partnership with Morgan Stanley Renewables Inc"

A financing arrangement where investors form a partnership to pool money and allocate the right to claim tax benefits from a project, splitting cash returns and tax credits or deductions among partners. It matters to investors because those tax benefits can substantially reduce a project’s effective cost and boost after‑tax returns, changing the expected cash flow and valuation—like roommates sharing rent and utilities so the overall expense is lower and each person gains different advantages.

AI-generated analysis. Not financial advice.

• PROJECT OPERATES UNDER A LONG-TERM TOLLING AGREEMENT WITH SAN DIEGO COMMUNITY POWER
  
  
• ARROWLEAF EXPANDS ORMAT’S OPERATING PORTFOLIO TO APPROXIMATELY 1.7 GW
  
  
• HYBRID TAX EQUITY PARTNERSHIP TRANSACTION CLOSED IN DECEMBER
  
  

RENO, Nev., Jan. 06, 2026 (GLOBE NEWSWIRE) -- Ormat Technologies Inc. (NYSE: ORA) (the “Company” or “Ormat”), a leading geothermal and renewable energy company, today announced the commencement of commercial operations of its Arrowleaf solar and battery energy storage project in California. Arrowleaf is Ormat’s first hybrid solar-plus-storage facility, marking a significant milestone in the Company’s development and strategic growth plans.

The hybrid Arrowleaf facility has approximately 42MW of solar generation capacity and 35MW/140MWh of energy storage. The project operates under a long-term tolling agreement with San Diego Community Power, delivering clean, renewable, and affordable energy to nearly 1 million customers.

The Arrowleaf project also reflects Ormat’s disciplined capital management strategy, notably its ability to simultaneously monetize the project’s investment tax credits through a hybrid tax equity partnership with Morgan Stanley Renewables Inc, which has resulted in approximately $38 million of upfront proceeds.

“Arrowleaf marks a major milestone for Ormat, as it is our first hybrid solar and energy storage project, and bringing our total operating portfolio to approximately 1.7 gigawatts,” said Doron Blachar, Chief Executive Officer of Ormat Technologies. “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. Arrowleaf’s commercial operation extends our positive momentum into 2026 as we continue advancing toward our 2028 growth targets.”

ABOUT ORMAT TECHNOLOGIES

With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company, and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. The Company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,600MW of gross capacity. Ormat leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current total generating portfolio is 1,695MW with a 1,310MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and a 385MW energy storage portfolio that is located in the U.S.

ORMAT’S SAFE HARBOR STATEMENT

Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, including such matters as our projections of annual revenues and Adjusted EBITDA, expenses and debt service coverage with respect to our debt securities, future capital expenditures, business strategy, competitive strengths, goals, development or operation of generation assets, legal, market, industry and geopolitical developments and incentives, demand for renewable energy, and the growth of our business and operations, are forward-looking statements. When used in this press release, the words “may”, “will”, “could”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, or “contemplate” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. These forward-looking statements generally relate to Ormat's plans, objectives and expectations for future operations and are based upon its management's current estimates and projections of future results or trends. Although we believe that our plans and objectives reflected in or suggested by these forward-looking statements are reasonable, we may not achieve these plans or objectives. Actual future results may differ materially from those projected as a result of certain risks and uncertainties and other risks described under "Risk Factors" as described in Ormat’s most recent annual report, and in subsequent filings.

These forward-looking statements are made only as of the date hereof, and, except as legally required, we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Ormat Technologies Contact: Smadar Lavi VP Head of IR and ESG Planning & Reporting 775-356-9029 (ext. 65726) slavi@ormat.com

Investor Relations Agency Contact: Joseph Caminiti or Josh Carroll Alpha IR Group 312-445-2870 ORA@alpha-ir.com

FAQ

What did Ormat (ORA) announce on January 6, 2026 about Arrowleaf?

Ormat announced Arrowleaf began commercial operations as its first hybrid solar-plus-storage project with 42 MW solar and 35 MW / 140 MWh storage.

How does Arrowleaf affect Ormat's operating capacity (ORA)?

Arrowleaf expands Ormat's operating portfolio to approximately 1.7 GW of generation capacity.

What commercial arrangement governs the Arrowleaf project (ORA)?

Arrowleaf operates under a long-term tolling agreement with San Diego Community Power, serving nearly 1 million customers.

What tax-equity financing did Ormat (ORA) use for Arrowleaf and what were proceeds?

Ormat monetized investment tax credits via a hybrid tax equity partnership with Morgan Stanley Renewables, generating about $38 million of upfront proceeds.

How much in tax credits did Ormat (ORA) collect in 2025 and did it meet targets?

The company collected over $160 million of tax credits in 2025, which management said exceeded its full-year target.

What are the key technical specs of Arrowleaf (ORA)?

Arrowleaf includes approximately 42 MW of solar generation capacity and 35 MW / 140 MWh of battery energy storage.