NeoVolta Closes $20M Secured Term Loan at 10% Rate
Capital Pressure
Company Background
NeoVolta is a San Diego-based energy storage company that sells battery systems for residential, commercial, and utility-scale applications. Its core residential business generates roughly $2 million in quarterly revenue — flat year-over-year as of the March 2026 quarter — following a surge in Q1 fiscal 2026 that the company attributed to channel expansion. Management cited the expiration of the federal solar investment tax credit for individuals on December 31, 2025, as a headwind to residential volumes.
The company is in the middle of building a domestic battery manufacturing joint venture in Pendergrass, Georgia, through NeoVolta Power LLC, in which it holds an 80% interest after an April 2026 amendment to the original structure. The facility is designed for 2 GWh of initial annual capacity scalable to 8 GWh, with a production ramp targeted for Q3 of calendar 2026. Funding those obligations has required repeated visits to capital markets: NeoVolta completed a $13 million private placement in December 2025, a $10 million registered direct offering in January 2026, a $30 million at-the-market program in March 2026, and a $25 million underwritten offering in late May 2026.
As of March 31, 2026, NeoVolta had $11.5 million in cash and was burning approximately $3 million per quarter at the net level, with total operating expenses of roughly $3.6 million against $2 million in quarterly revenue. In its May 2026 earnings press release, management stated it was "actively evaluating equity, debt, and project financing alternatives to fund Phase 2 and Phase 3 joint venture obligations."
What Was Disclosed
On September 4, 2026, NeoVolta entered into a Loan, Security and Guaranty Agreement with Horizon Technology Finance Corporation as collateral agent and lender, ROHO Capital Opportunity Fund LLC as a lender, and Monroe Capital Management Advisors as administrative agent. The lenders provided $20 million in term loans bearing interest at 10.00% per annum, with a scheduled maturity date of March 3, 2028. The agreement also allows for a potential increase of up to an additional $10 million at the mutual agreement of both parties, conditioned on, among other things, the issuance of additional warrants to the participating lenders.