v3.26.1
Property, Plant and Equipment
 6 Months Ended
Jun. 30, 2026
Property, Plant, and Equipment [Abstract]  
Property, Plant and Equipment
Note 6. Property, Plant and Equipment
Property, plant and equipment, net consists of the following:
(in thousands)
June 30, 2026December 31, 2025
Land$21,719 $22,778 
Plant and equipment1,611,204 1,621,970 
Construction in progress879,424 802,310 
Asset retirement cost27,458 27,595 
Finance right-of-use asset65 65 
Other2,231 2,010 
Total property, plant and equipment$2,542,101 $2,476,728 
Accumulated depreciation(176,313)(147,693)
Property, plant and equipment, net$2,365,788 $2,329,035 
The Accumulated depreciation balance as of June 30, 2026 and December 31, 2025 reflects the sale of certain projects during the period ended December 31, 2025. Construction in progress includes $48.1 million and $61.7 million of development costs as of June 30, 2026 and December 31, 2025, respectively.
The following table presents Depreciation expense recorded within Depreciation, amortization and accretion on the Consolidated Statements of Operations for the periods indicated below:
Three months ended
June 30,		Six months ended
June 30,
(in thousands)
2026202520262025
Depreciation expense$14,689 $18,596 $29,787 $37,092 
Involuntary Conversion
In 2025, two operating solar projects, located in Montana and California, experienced fires that caused significant damage to the projects. As a result of the fires and related damage, the Company is in the process of replacing certain damaged project components, primarily solar modules. The Company estimated the net book value of the damaged components to be replaced and accordingly derecognized the estimated net book value of $9.1 million from Property, plant and equipment, net reflected in the Consolidated Balance Sheets as of December 31, 2025. The Company expects to be fully reimbursed under its property insurance policies for the costs to repair the facilities, net of an applicable deductible, as well as for up to twelve months of business interruption losses, net of a thirty-day waiting period. Based on the current status of negotiations with the insurers, the Company has concluded that it is probable that it will recover a minimum of $9.1 million of proceeds associated with the assets that were damaged and derecognized during the year ended December 31, 2025. Accordingly, the Company recorded an insurance receivable for the same amount within Other current assets reflected in the Consolidated Balance Sheets as of December 31, 2025 and did not record any gain or loss related to the derecognition of the assets in the Company’s Consolidated Statements of Operations during 2025. The Company has received total insurance proceeds of $3.6 million related to these fires through June 30, 2026, which were recorded as a reduction to the insurance receivable reported within Other current assets in the Consolidated Balance Sheets.
Impairment of Long-Lived Assets
For the three and six months ended June 30, 2026, the Company recognized impairment losses of $26.9 million and $27.4 million, respectively, which are included within Impairment of long-lived assets, net and termination costs on the Consolidated Statements of Operations. For the three months ended June 30, 2026, the Company recorded impairment charges primarily related to three projects: (i) $11.1 million related to an in-development solar project following changes in the project’s development outlook resulting from interconnection constraints; (ii) $7.9 million related to an operating solar project following the execution of a settlement agreement on May 20, 2026 that resulted in the termination of the project’s related PPA and site lease and required decommissioning of the project, as discussed in Note 11. Commitments and Contingencies; and (iii) $7.7 million related to an in-development solar project following management’s decision to reallocate development resources and capital toward other projects, reducing the project’s expected recoverable value. The fair value of the assets was determined using a market approach, and the impairment charges were recorded to the Company’s IPP segment.
During the three and six months ended June 30, 2025, the Company recognized impairment losses of $5.0 million and $17.7 million, respectively. The impairment loss in the three months ended June 30, 2025 is primarily associated with the termination of the development of two solar projects. The impairment loss includes $0.8 million related to a deposit forfeited to an offtaker for damages. The remaining $12.7 million impairment loss recognized for the six months ended June 30, 2025 related to impairments recorded during the first quarter of 2025, associated with (i) two operational wind projects for which the Company determined that the carrying value of the related long-lived assets were no longer recoverable through the projected future operating cash flows of the projects and (ii) six development-stage solar projects for which the Company terminated the development of the projects. The fair value of the assets was determined using a market approach. The impairment loss included $1.6 million related to upfront payments to customers and $0.8 million of capitalized costs to obtain a contract related to the termination of the development of three projects recorded within Other noncurrent assets on the Consolidated Balance Sheets due to the termination of the related PPAs. In addition to the $17.7 million impairment loss, the Company paid a $1.0 million termination fee in association with the termination of a PPA. The termination fee and impairment losses are presented within Impairment of long-lived assets, net and termination costs on the Consolidated Statements of Operations. The charges were recorded to the Company’s IPP segment.