Terra-Gen secures $383.3mn for Lockhart III & IV solar project in California
Terra-Gen has closed $383.3mn in financing for the construction of its Lockhart III and IV solar units, adding 205 MW to California’s grid with commercial operations expected in 2026.
| Sectors | Solar Energy, Photovoltaic, Energy Storage |
|---|---|
| Themes | Investments & Transactions, Financing, Project Development |
Independent power producer Terra-Gen has announced the financial close of its Lockhart III & IV solar project, located in San Bernardino County, California. The total financing amounts to $383.3mn and will support the construction of 205 megawatts (MWac) of solar capacity, equivalent to the annual consumption of approximately 94,000 households.
The financing package includes a $236.1mn tax equity bridge loan, a $107.5mn construction and term loan, and $39.7mn in unfunded facilities. Four commercial banks from the United States and abroad are participating in the transaction: Crédit Agricole Corporate and Investment Bank, ING, NORD/LB and U.S. Bank through its subsidiary U.S. Bancorp Impact Finance.
A strategic project within Terra-Gen’s portfolio
Construction of Lockhart III & IV began earlier this year, with commercial operations targeted for 2026. Cupertino Electric is responsible for the engineering, procurement and construction contract, while EPC Services is handling high-voltage infrastructure. The photovoltaic modules are being supplied by First Solar.
The new units are located near previous phases of the Lockhart complex, which includes Lockhart I (85 MW) and Lockhart II (75 MW). The site also hosts a standalone four-hour battery storage system of 45 MW, as well as 129 MW of co-located four-hour storage currently under development.
Repurposing a historical site for photovoltaic generation
Part of the project is being built on the site of the former SEGS IX solar thermal facility, decommissioned in 2024. The facility will connect to the grid via the existing transmission line linked to the Kramer Junction Substation, reducing the need for new infrastructure.
This development is part of Terra-Gen’s continued expansion of energy generation capacity in California. The company is jointly owned by Igneo Infrastructure Partners and Masdar, and continues to strengthen its presence in the U.S. market through large-scale solar and storage projects.
