SolarMax stock soars after landing $127.3M battery storage contract

Investing.com -- SolarMax Technology, Inc. (NASDAQ: SMXT) stock surged 57% in pre-open trading after the integrated solar energy company announced a major engineering, procurement, and construction (EPC) agreement for a utility-scale battery storage project in Texas.

The company's wholly owned subsidiary, SolarMax Renewable Energy Provider, Inc., signed the contract with Longfellow BESS I LLC, which is expected to generate approximately $127.3 million in revenue. SolarMax is also purchasing an 8% interest in Longfellow BESS I LLC.

Under the agreement, SolarMax will provide comprehensive EPC services for a 430 megawatt-hour (MWh) battery energy storage system and its associated high-voltage interconnection infrastructure in Pecos County, Texas. The project, which aims to support grid stability and energy affordability in the region, is scheduled for completion 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.

The battery energy storage system is designed to store renewable electricity for use during periods of peak demand, contributing to Texas's broader clean energy strategy and grid reliability efforts.

SolarMax indicated that supplier discussions are nearing conclusion, and the company is pursuing additional project opportunities across the U.S. as it transitions into a more diversified energy company.

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