Terra-Gen has taken another major step forward in expanding its solar footprint in California, officially securing financing for the 205MW Lockhart III & IV solar PV project in San Bernardino County. The deal strengthens the firm’s position in one of the nation’s most competitive renewable energy markets and marks a key milestone in a year of accelerating clean energy investment.
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According to the company, the financing package totals US$383.3 million, structured across multiple instruments to support construction, tax equity needs, and future capital requirements. The arrangement includes a US$236.1 million tax equity bridge loan, a US$107.5 million construction and term loan, and US$39.7 million in unfunded facilities. A consortium of major financial institutions participated, including Crédit Agricole Corporate and Investment Bank, ING, NORD/LB, and U.S. Bancorp Impact Finance, the sustainable investment arm of U.S. Bank.
“The financing of our Lockhart project marks another significant milestone in advancing our renewable energy portfolio and strengthening our position in one of the most dynamic renewable energy markets in the country,” said Terra-Gen CEO John O’Connor.
Terra-Gen began construction on Lockhart III & IV earlier in 2025 and expects the project to reach commercial operation in 2026. Engineering, procurement and construction (EPC) firm Cupertino Electric is leading installation. The project will use solar modules from First Solar, which recently announced plans to expand its U.S. manufacturing capacity with a new facility slated to open next year.
The Lockhart III & IV phases are being developed next to the existing Lockhart I & II installations. Once all phases are complete, the broader Lockhart complex will represent one of the region’s most robust clusters of solar and storage assets.
The original Lockhart projects already contribute 160MW of solar capacity, along with a 45MW, 4-hour standalone battery system and an additional 129MW of co-located battery storage currently under construction. When combined, these projects position the Lockhart site as an emerging hub for flexible, dispatchable renewable energy—a critical asset as California continues integrating higher levels of solar into its grid.
The financing announcement follows major corporate news: Terra-Gen’s acquisition by Masdar, the United Arab Emirates’ state-owned clean energy company, was finalized in October. At the time of the purchase, Masdar held 1.4GW of U.S.-based solar, storage, and wind assets. By adding Terra-Gen’s 3.9GW operating portfolio, the firm has significantly bolstered its presence in the American renewable market.
The combination of Masdar’s investment capacity and Terra-Gen’s development pipeline is expected to accelerate U.S. clean energy deployment at a critical time, particularly as market momentum grows around utility-scale solar and hybrid solar-storage configurations.
With financing now secured and construction underway, the Lockhart III & IV project is set to play a meaningful role in California’s long-term energy transition—supporting grid reliability, expanding clean generation, and contributing to the state’s continued progress toward renewable energy targets.
Originally reported by JP Casey in PV Tech.
