Israel-based N2OFF, Inc., a cleantech company investing in solar energy assets based on the RTB (Ready to Build) business model, decided to extend additional debt financing to Solterra Renewable Energy Ltd. (Solterra).
In a press release, while sharing these details, N2OFF said it decided to extend the financing in connection with its previously reported Melz solar project for the purpose of integrating a large-scale battery energy storage system (BESS) into its 115 MWp solar photovoltaic project in Melz, Germany. The planned “green” BESS will have a capacity of 107 MW / 214 MWh and is designed to optimize electricity sales while providing additional grid services (the “Green BESS Project”).
About The Funding
On September 8, 2025, N2OFF and other lenders provided additional funding to Solterra in the amount of €600,000, accruing interest at a rate of 7% per annum, which loan amount will mature in accordance with the terms of the Loan Agreement dated July 31, 2024 (the “Loan Agreement”). N2OFF is also entitled to 25% of the potential profits, after loan repayment.
Entrix, a Germany-based EU energy trader, conducted a study and concluded that the Green BESS Project has the potential to significantly enhance revenues.
Constantin Nicklas, Head of Sales at Entrix, commented, “With the addition of the BESS, we expect to significantly boost project revenues through an integrated co-optimization, maximizing revenues across the entire project, i.e., both solar and BESS.”
A complementary analysis by another consultancy firm further evaluated the revenue potential from ancillary grid services in addition to arbitrage. This assessment highlighted significant additional income from frequency containment reserve (FCR), automatic frequency restoration reserve (aFRR), voltage support, and other flexibility services such as black start capability. Based on these findings, the combined contribution of load shifting and ancillary services could yield incremental revenues of €100–120 per MW annually—representing a 40–50% uplift compared to load shifting alone.
Factoring in these additional revenue streams, the profitability of the Melz project has the potential to significantly increase compared to the original business case.
“Adding a 107 MW / 214 MWh storage system to the Melz project represents a significant value-enhancement endeavor,” said David Palach, CEO of N2OFF. “By combining a high-capacity battery with our 115 MWp solar plant, we are aiming to create a long-term, cash-generating asset with stable, diversified revenues and strong return potential for our stockholders.”
Melz project
The Melz project is part of N2OFF’s joint venture in the renewable energy sector, which received municipal approval on December 31, 2024, to proceed towards inclusion in the statutory plan (“Bebauungsplan”). Final plan approval is anticipated in early 2026. Integrating battery storage will enable the facility to shift loads and sell power during peak pricing periods, while also supplying ancillary services to the grid, creating multiple revenue streams.
The Melz project is part of N2OFF’s broader partnership with Solterra Renewable Energy Ltd., a wholly owned subsidiary of Solterra Energy Ltd., to accelerate the development of high-potential renewable energy projects across Europe. Current joint initiatives include:
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Two BESS projects in Sicily, Italy (98 MW / 392 MWh each)
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An exclusive agreement to co-develop solar PV projects in Albania
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A 35 MW / 140 MWh BESS project in Poland
