NeoVolta's Power Play: A Bid to Energize California's Grid

SAN DIEGO, CA – December 11, 2025 – In a move that signals a significant shift in the U.S. energy storage landscape, San Diego-based NeoVolta Inc. is positioning itself to become a key player in California's ambitious clean energy transition. The company has announced a strategic collaboration with developer Luminia LLC, outlining a framework to potentially supply up to 160 megawatt-hours (MWh) of battery storage for a series of solar-plus-storage projects across the Golden State. While the deal remains non-binding, the potential $39 million in equipment revenue underscores a pivotal moment for NeoVolta and a powerful new chapter in the state's push for grid resilience.

California's Ambitious Energy Future Meets Market Reality

California is racing against the clock to decarbonize its power grid, targeting 100% carbon-free electricity by 2045. This monumental undertaking requires not just vast amounts of renewable generation, but a robust infrastructure to store that energy and ensure reliability. The state's grid operator, CAISO, projects a staggering need for 52,000 megawatts of battery storage by 2045 to balance the intermittency of solar and wind power.

This enormous demand has created a booming market, with California's battery capacity already soaring from just 500 MW in 2018 to nearly 17,000 MW today. However, this rapid expansion brings its own challenges. As more storage floods the market, the revenue generated from ancillary services and peak energy price arbitrage has begun to decline, squeezing profit margins for asset owners. This market pressure makes project economics more challenging and places a premium on cost-effective, high-performance technology and strategic partnerships.

This is the complex environment where the NeoVolta-Luminia collaboration aims to thrive. The planned projects, which include both front-of-the-meter (FTM) utility-scale installations and behind-the-meter (BTM) systems for commercial and municipal clients, are designed to support local Community Choice Aggregators (CCAs). These public agencies are at the forefront of procuring clean energy on behalf of local residents and businesses, often with a dual mandate of reducing emissions and bolstering local energy resilience against events like Public Safety Power Shutoffs (PSPS).

“We look forward to collaborating with Luminia as they advance their proposed CCA-related clean-energy projects across California,” said Ardes Johnson, CEO of NeoVolta, in a statement. “NeoVolta’s U.S.-manufactured, IRA-aligned systems are well suited for these CCA resiliency and grid-support deployments, and we look forward to supporting Luminia in executing this important work.”

NeoVolta's Strategic Pivot to Utility-Scale Power

For NeoVolta, this framework agreement represents far more than a single large order; it's the cornerstone of a deliberate strategic pivot. Historically known for its residential energy storage systems, the company is now making a bold play for the much larger and more complex commercial, industrial (C&I), and utility-scale markets. Successfully supplying 160 MWh of storage would instantly validate its technology at scale and catapult it into a new league of industry players.

This ambition is backed by concrete steps to scale its operational capacity. While the company operates a manufacturing facility in Poway, California, it has its sights set on a much larger prize. NeoVolta recently secured $13 million in financing, with a significant portion earmarked for a proposed 2 GWh state-of-the-art manufacturing plant in Georgia. This facility, if realized, would focus specifically on utility and C&I battery systems, giving NeoVolta the production muscle needed to fulfill large-scale orders like the one contemplated with Luminia.

The collaboration also provides a blueprint for a more sustainable business model. By partnering directly with developers like Luminia, NeoVolta can secure a recurring and potentially higher-margin revenue stream through large-volume equipment supply, moving beyond the one-off sales cycle of the residential market.

“As our development work advances, we’re excited to build on our collaboration with NeoVolta as we evaluate technologies capable of supporting the scale, resiliency, and performance our deployments demand,” commented David Field, CEO of Luminia. This highlights the symbiotic nature of the partnership: Luminia needs reliable, high-performance technology, and NeoVolta needs a platform to prove its capabilities at scale.

The Power of Policy: Unlocking Value with IRA and State Incentives

The financial viability of these ambitious clean energy projects hinges on a powerful combination of federal and state incentives. The Inflation Reduction Act (IRA) has been a game-changer for domestic manufacturing, and NeoVolta's strategy is explicitly designed to capitalize on it. The company's emphasis on “U.S.-manufactured, IRA-aligned” systems is a critical competitive advantage.

The IRA offers a base 30% Investment Tax Credit (ITC) for clean energy projects, but it includes crucial “bonus” credits. One of the most significant is a 10% bonus for projects that meet domestic content requirements. To qualify, projects must use 100% U.S.-made steel and iron, and a specified percentage of their manufactured components must be American-made—a threshold set at 45% for projects starting in 2025. By aligning its supply chain and future manufacturing plans with these rules, NeoVolta enables developers like Luminia to unlock this extra 10% credit, making their project bids more competitive and financially attractive.

On top of federal support, California's own Self-Generation Incentive Program (SGIP) provides direct cash rebates that further de-risk these investments. With over $1 billion allocated through 2024, SGIP offers tiered incentives that can cover a substantial portion of a battery system's cost. While the “General Market” rebate is significant, the program's “Equity” and “Equity Resiliency” tiers offer even greater support—up to $1,000 per kilowatt-hour—for projects located in low-income communities or areas frequently impacted by wildfire-related power outages. This aligns perfectly with the community-focused mission of the CCAs and developers like Luminia.

From Grid Support to Community Resilience

Beyond the balance sheets and policy documents, the true impact of this collaboration will be felt on the ground in California communities. The portfolio of projects includes both FTM and BTM systems, each playing a distinct but complementary role. The larger FTM projects will feed power directly into the grid, helping CAISO manage peak demand and integrate renewables.

The BTM installations, however, bring the benefits of clean energy directly to businesses, municipal buildings, and community centers. For a commercial site, a solar-plus-storage system means lower energy bills, protection from peak demand charges, and business continuity during an outage. For a municipal facility like a fire station or community cooling center, it means having a reliable source of power to continue providing essential services during a grid failure or PSPS event.

This distributed approach to energy is transforming neighborhoods from passive consumers of electricity into active participants in a more resilient and democratic energy system. By deploying storage at the local level, Luminia and NeoVolta are not just building infrastructure; they are enhancing energy equity and providing communities with greater control over their energy future. As California continues its journey toward 100% clean energy, it is these innovative collaborations—linking technology, policy, and community needs—that will ultimately power its success.