SolarMax Technology Awarded $127.3 Million EPC Contract for 430 MWh Battery Storage Project in Texas

Rhea-AI Summary

SolarMax Technology (Nasdaq: SMXT) has secured a significant $127.3 million EPC contract for a utility-scale battery storage project in Pecos County, Texas. The company's subsidiary, SolarMax Renewable Energy Provider, will deliver comprehensive EPC services for a 430 MWh battery energy storage system (BESS), with project completion expected by June 30, 2026.

As part of the agreement with Longfellow BESS I LLC, SolarMax will acquire an 8% ownership stake in the project. The BESS installation aims to enhance grid stability and energy affordability in Texas by storing renewable electricity for peak demand periods.

Positive

• Secured major $127.3 million EPC contract for utility-scale battery storage
• Strategic expansion beyond residential solar into commercial-scale EPC services
• 8% ownership stake in the project provides additional revenue potential
• Strong project pipeline indicates potential for future growth

Negative

• Project completion timeline extends to mid-2026, indicating delayed revenue recognition
• Supplier discussions still not finalized, presenting potential execution risks

Insights

Energy Infrastructure Analyst

SolarMax secures major $127.3M battery storage contract, strategically diversifying beyond residential solar into commercial-scale EPC services.

SolarMax Technology has secured a $127.3 million EPC contract for a substantial 430 MWh battery energy storage system in Texas, marking a significant revenue opportunity and strategic pivot. This contract represents approximately 8% ownership stake in the project through Longfellow BESS I LLC, giving them both project revenue and equity upside.

The scope is comprehensive – covering design, engineering, procurement, construction, and commissioning – with completion targeted by mid-2026. This positions SolarMax in the rapidly growing utility-scale storage market, which is critical infrastructure as renewable penetration increases across the grid.

This diversification beyond residential solar installations into large-scale commercial EPC services represents an important strategic evolution. The Texas location is particularly notable as the ERCOT market faces ongoing grid stability challenges, creating strong demand for flexible storage assets that can provide reliability services and arbitrage opportunities.

The 430 MWh capacity makes this a substantial mid-sized storage project by current industry standards. For context, a system of this size could potentially power approximately 43,000 homes for 4 hours during peak demand periods. The project's ability to store renewable energy for dispatch during peak demand will help address the intermittency challenges of wind and solar generation while potentially capturing price spreads in the volatile Texas electricity market.

This contract signals SolarMax's capability to execute on larger infrastructure projects, potentially opening doors to similar opportunities as their project pipeline develops. The company's strategic positioning in both residential and now utility-scale markets provides diversified revenue streams and reduced sector-specific risk exposure.

RIVERSIDE, Calif., Aug. 05, 2025 (GLOBE NEWSWIRE) -- SolarMax Technology, Inc. (Nasdaq SMXT) (“SolarMax” or the “Company”), an integrated solar energy company, today announced that its wholly owned subsidiary, SolarMax Renewable Energy Provider, Inc., has entered into an engineering, procurement and construction (EPC) agreement with Longfellow BESS I LLC for a new utility-scale battery storage project in Pecos County, Texas. The contract is expected to generate revenues of approximately $127.3 million. SolarMax is purchasing an 8% interest in Longfellow BESS I LLC.

Under the agreement, SolarMax will deliver full-scope EPC services—including design, engineering, procurement, installation, construction, testing, startup, and commissioning—for a 430 megawatt-hour (MWh) battery energy storage system (BESS) and its associated high-voltage interconnection infrastructure. Project completion is expected by June 30, 2026.

“This contract represents a key step in scaling our commercial footprint in the United States and validates our strategy to diversify beyond residential solar into commercial-scale EPC services,” said David Hsu, CEO of SolarMax. “With supplier discussions nearing conclusion, we are confident in our ability to meet the project’s mid-2026 delivery timeline.”

The BESS project is designed to support grid stability and energy affordability in Texas by enabling the storage of renewable electricity for use during periods of peak demand. This installation contributes to the region’s broader clean energy strategy and is expected to play a critical role in maintaining grid reliability.

“We’re actively pursuing additional project opportunities across the U.S., and we’re encouraged by the strong momentum we’re seeing in our pipeline,” Hsu added. “This project reinforces our transition into a more diversified energy company, and we believe it positions us well to capitalize on the accelerating demand for large-scale clean energy solutions nationwide.”

About SolarMax Technology Inc.

SolarMax, based in California and founded in 2008, is a leader within the solar and renewable energy sector focused on making sustainable energy both accessible and affordable. SolarMax has established a strong presence in southern California. SolarMax is looking to generate growth with strategic initiatives that aim to scale commercial solar development services and LED lighting solutions in the US while expanding its residential solar operations. SolarMax’ website is www.solarmaxtech.com.

Any information contained on, or that can be accessed through SolarMax’ website or any other website or any social media is not a part of this press release.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”) as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” ��would,” “could,” “seek,” “intend,” “plan,” “goal,” “project,” “estimate,” “anticipate,” “strategy,” “future,” “likely” or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the Company's strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements are subject to risk and uncertainties, including, but not limited to the ability of SolarMax to price its services on the contract at rates that will enable SolarMax to generate a profit from the agreement, including the effect of inflation and tariffs on SolarMax’ cost, which may impact its ability to generate a profit from the transaction, the effect on SolarMax’ residential business with the termination of the federal residential solar tax credit on December 31, 2025 and those described in “Cautionary Note on Forward-Looking Statements,” “Item 1A. Risk Factors,” and “Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on March 31, 2025 and “Management's Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s report on Form 10-Q for the quarter ended March 31, 2025, which was filed with the SEC on May 16, 2025. SolarMax undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

Contact:
For more information, contact:
Stephen Brown, CFO
(951) 300-0711

FAQ

What is the value of SolarMax Technology's (SMXT) new EPC contract in Texas?

SolarMax Technology secured a $127.3 million EPC contract for a 430 MWh battery storage project in Pecos County, Texas.

When will SolarMax Technology (SMXT) complete the Texas battery storage project?

The project is expected to be completed by June 30, 2026, including design, engineering, procurement, installation, construction, testing, startup, and commissioning.

What ownership stake will SolarMax (SMXT) have in the Texas battery project?

SolarMax Technology is purchasing an 8% interest in Longfellow BESS I LLC, the project company.

What is the storage capacity of SolarMax's (SMXT) Texas battery project?

The battery energy storage system (BESS) will have a capacity of 430 megawatt-hours (MWh).

How does the Texas battery project align with SolarMax's (SMXT) business strategy?

The project represents SolarMax's strategic diversification beyond residential solar into commercial-scale EPC services, positioning the company to capitalize on growing demand for large-scale clean energy solutions.