Energy systems, net consists of the following (in thousands):


	June 30, 2026		December 31, 2025
Energy system equipment costs	$	16,736,854	$	16,090,654
Inverters and batteries	3,595,777		3,343,643
Total energy systems	20,332,631		19,434,297
Less: accumulated depreciation and amortization	(3,738,883)		(3,384,021)
Add: construction-in-progress	651,464		767,587
Total energy systems, net	$	17,245,212	$	16,817,863

All energy systems, including construction-in-progress, have been leased to or are subject to signed Customer Agreements with customers. The Company recorded depreciation expense related to energy systems of $184.6 million and $166.0 million for the three months ended June 30, 2026 and 2025, respectively, and $365.7 million and $327.2 million for the six months ended June 30, 2026 and 2025, respectively. The depreciation expense was reduced by the amortization of deferred grants of $2.3 million and $2.1 million for the three months ended June 30, 2026 and 2025, respectively, and $4.5 million and $4.9 million for the six months ended June 30, 2026 and 2025, respectively.