Power Infrastructure Co.'s Long-Term Contracts Highlight Behind-the-Meter Demand

Important Disclosures:

1. Cori Fisher wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
2. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

1. Ownership and Share Structure Information

Ownership percentages, named holders, share count, market capitalization, and the 52-week range for Solaris were compiled from company public filings and investor materials, exchange notices, insider-trade reports (SEDI / equivalent), and third-party data providers. Figures are as of 2026-11-09 unless a source was dated earlier. Pie slices are normalized to 100% of basic shares outstanding; retail is the residual after disclosed institutions, management, insiders, and strategic holders. Warrant terms are current outstanding series only. Restructures are historical consolidations, splits, and symbol or name changes. Insider buying and selling covers open-market trades from the prior six months through 2026-11-09 and excludes option exercises. These are public-source estimates and can differ from a later official register.

"No utility interconnection queue. No waiting 3-4 years for a transformer. No transmission upgrade."

That is how Russ of 1971 Capital summarized the appeal of behind-the-meter (BTM) power: electricity generated on the customer's side of the utility connection, rather than delivered entirely through the traditional grid. As demand from data centers and other energy-intensive operations grows, the approach offers a way to bring power online without relying on the same grid infrastructure and connection process.

For Solaris Energy Infrastructure Inc. (SEI:NYSE), that demand is already translating into long-term customer agreements. The company reported record Q3 2026 revenue and announced a 15-year power contract covering approximately 900 megawatts (MW), bringing its long-term contracted generation capacity to 3.2 gigawatts (GW).

Key Investor Takeaways

Why the Grid Is Becoming a Bottleneck

The scale of the interconnection challenge is substantial. More than 2,060 GW of generation and storage capacity was waiting to connect to the U.S. grid at the end of 2025, according to Lawrence Berkeley National Laboratory's 2026 Queued Up report. The figure includes 1,312 GW of generation and approximately 749 GW of storage. The time required to connect has also increased. The median power plant that reached commercial operation in 2025 took 61 months from its initial interconnection request, compared with 22 months for projects completed in 2008, the report found. Separately, large power transformers can have procurement lead times of two to four years, according to a National Infrastructure Advisory Council report.

These delays create an opening for on-site generation. BTM systems can supply electricity directly to a facility, reducing its dependence on new grid connections and transmission upgrades. They can operate independently or complement the wider grid, depending on how the system is designed.

Russ identified solar paired with battery storage as the fastest BTM option available today, while viewing nuclear as a longer-term solution for the 2030s and beyond. The Invesco Solar ETF (TAN) rose 5.7% to US$45.79 on November 4, reflecting a sharp one-day rebound in solar shares. On the nuclear side, private developer Aalo Atomics reported achieving criticality with its test reactor on July 4, 2026. The milestone demonstrated a sustained nuclear chain reaction, although commercial deployment remains ahead.

Solaris Converts Power Demand Into Long-Term Contracts

Solaris' Q3 earnings results illustrate how demand for dedicated generation is developing into contracted business. The company reported revenue of approximately US$341 million, up 55% from the second quarter, while adjusted EBITDA increased 26% sequentially to approximately US$136 million.

On October 29, Solaris signed a 15-year agreement, with an option to extend for another 15 years, to provide approximately 900 MW of generation capacity, associated balance-of-plant equipment, and operations and maintenance services to an existing investment-grade customer. Deployments are expected to begin in the first half of 2027 and scale through 2028.

 Scott Gruber of Citigroup raised his price target on Solaris Energy Infrastructure from US$100 to US$104 and maintained a "Buy" rating.

The agreement brought total long-term contracted generation capacity to approximately 3.2 GW, with a weighted average contract duration of about 11 years.

The company reported contracted revenue backlog exceeding US$16 billion. It also raised its Q4 2026 adjusted EBITDA guidance to US$165 million-US$185 million, from US$145 million-US$180 million, and its Q1 2027 guidance to US$220 million-US$260 million, from US$200 million-US$240 million.

Solaris' contract structure is another part of the model. In a company filing with the SEC, the company said its power-generation segment primarily earns revenue through long-term, fixed-fee leasing and service contracts with investment-grade counterparties. It also stated that fuel and power price risks are contractually borne by customers.

In recent news, Solaris also expanded its equipment and service capacity during the quarter. The company secured an additional 200 MW of available generation capacity through time-advantaged equipment for deployment under customer contracts in 2027. It also signed a seven-year operations and maintenance agreement covering approximately 400 MW of customer-owned generation capacity.

Acquisitions of Omega and GESA have expanded Solaris' engineering, construction, installation, commissioning, and maintenance capabilities. During the Q3 earnings call, management said Solaris operates approximately 1 GW of its own generation capacity and an additional 3 GW of third-party-owned power globally, broadening its services business beyond its own contracted fleet.

Moving from 'Hold' to 'Buy'

Recent analyst coverage on Solaris includes:

• On November 9, 2026, Scott Gruber of Citigroup raised his price target on Solaris Energy Infrastructure from US$100 to US$104 and maintained a "Buy" rating.

• On November 9, 2026, Derek Podhaizer of Piper Sandler raised his price target from US$82 to US$85 and maintained an "Overweight" rating.

• On November 6, 2026, J.R. Weston of Raymond James upgraded Solaris Energy Infrastructure from "Moderate Buy" to "Strong Buy" and set a US$113 price target. 

• On November 6, 2026, David Anderson of Barclays raised his price target from US$116 to US$140 and maintained an "Overweight" rating.

• On November 6, 2026, Jerry Revich of Wells Fargo lowered his price target from US$72 to US$65 while maintaining an "Overweight" rating.

• On November 6, 2026, Goldman Sachs set a US$113 price target. No analyst was listed.

• On October 30, 2026, Sean Milligan of Needham reiterated a "Buy" rating with a US$104 price target.

• On October 21, 2026, David Arcaro of Morgan Stanley raised his price target from US$90 to US$102 and maintained an "Overweight" rating.

• On October 9, 2026, Zacks Research upgraded Solaris Energy Infrastructure from "Hold" to "Strong Buy." MarketBeat did not identify the analyst or provide a price target.

Risks Balanced with Catalysts

Data center development remains exposed to permitting, regulatory, and community concerns, and analysts from Barclays, Stifel, and Citigroup questioned management about the potential effects of restrictions on new facilities during the Q3 call. Solaris' executives emphasized that its generation equipment is not tied to a single site and can be relocated as customer needs change.

Management also acknowledged that construction-related services revenue can fluctuate from quarter to quarter, even as it sees longer-term demand for maintenance and equipment servicing. Investors will be watching whether Solaris can deliver its raised Q4 guidance while converting its contracted capacity into operating projects amid changing sentiment toward AI-related infrastructure spending.

Common Questions from Investors

What does behind-the-meter power mean?

Behind-the-meter power refers to electricity generated on the customer's side of the utility connection. It can provide facilities such as data centers and industrial operations with dedicated power while reducing their reliance on new grid connections and transmission infrastructure.

How does Solaris Energy Infrastructure benefit from behind-the-meter demand?

Solaris provides power-generation equipment, balance-of-plant infrastructure, installation, and operations and maintenance services. Its long-term customer agreements allow it to supply dedicated generation capacity to customers seeking reliable power.

What was Solaris' latest major power contract?

On Oct. 29, 2026, Solaris announced a 15-year agreement to provide approximately 900 MW of generation capacity, associated equipment, and services to an investment-grade customer. The agreement includes an option to extend for another 15 years.

What were Solaris' Q3 2026 financial results?

Solaris reported approximately US$341 million in third-quarter revenue, up 55% sequentially, and adjusted EBITDA of approximately US$136 million. Its contracted revenue backlog exceeded US$16 billion.

What is Solaris' Q4 2026 financial guidance?

The company raised its fourth-quarter adjusted EBITDA guidance to a range of US$165 million to US$185 million, compared with its previous range of US$145 million to US$180 million.

What risks could affect Solaris' growth?

Potential restrictions on data center development, permitting challenges, equipment deployment delays, and fluctuations in construction-related services revenue could affect Solaris' ability to meet its growth targets.