SolarMax Wins $127.3M EPC Contract for Texas Battery Storage Project

SolarMax Technology has been awarded a $127.3M engineering, procurement and construction (EPC) contract for a utility-scale battery storage project in Texas. The project, expected to be completed by June 30, 2026, will involve delivering full-scope EPC services for a 430 megawatt-hour battery energy storage system and its associated high-voltage interconnection infrastructure. SolarMax will purchase an 8% interest in Longfellow BESS I LLC, the project owner.

Riverside, Calif., Aug. 05, 2025 (GLOBE NEWSWIRE) — SolarMax Technology, Inc. (Nasdaq SMXT) (“SolarMax” or the “Company”), an integrated solar energy company, has announced the award of a significant engineering, procurement, and construction (EPC) contract for a utility-scale battery storage project in Pecos County, Texas. The contract, valued at approximately $127.3 million, positions SolarMax to capitalize on the growing demand for energy storage solutions in the United States.

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. The project is expected to be completed by June 30, 2026.

SolarMax will also acquire an 8% interest in Longfellow BESS I LLC, the project owner. The contract represents a key step in scaling SolarMax’s commercial footprint in the United States and validates its strategy to diversify beyond residential solar into commercial-scale EPC services.

“This contract is a significant milestone for SolarMax as we continue to expand our commercial operations,” said David Hsu, CEO of SolarMax. “It underscores our commitment to delivering innovative energy solutions that support grid stability and affordability.”

The 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.

SolarMax’s stock price surged 101.09% intraday on the news, reflecting investor optimism about the company’s pivot to utility-scale projects and its ability to execute the Pecos County BESS project by mid-2026 [2].

The contract is expected to generate revenues of approximately $127.3 million, contributing to SolarMax’s overall financial health. However, the company faces potential risks, including the ability to price its services on the contract at rates that enable profitability, the impact of inflation and tariffs on costs, and the effect of the termination of the federal residential solar tax credit on December 31, 2025.

Despite these challenges, SolarMax remains optimistic about its future prospects and is actively pursuing additional project opportunities across the U.S.

References:
[1] https://finance.yahoo.com/news/solarmax-technology-awarded-127-3-120000245.html
[2] https://www.ainvest.com/news/solarmax-technology-smxt-surges-101-127m-epc-contract-renewable-energy-play-2508/