Tesla has entered into a long-term agreement to purchase all the electricity generated by a new 140-MWac solar farm in northeast Texas. The project, known as Lumen Farm, is being developed by Zelestra, a major player in the renewable energy sector. This marks Tesla’s first US deal with Zelestra, expanding a partnership that began in Europe.
Tesla and Zelestra Expand Partnership in the US
Tesla has signed a power purchase agreement (PPA) to buy the entire output of the Lumen Farm solar project, a 140-MWac facility set to be built in northeast Texas. Construction is scheduled to begin in 2027, with the plant expected to come online in 2029.
Lumen Farm is being developed by Zelestra, an EQT-backed renewable developer with a portfolio exceeding 16 GW of projects. Zelestra was recently ranked among the top 10 corporate clean energy sellers globally by BloombergNEF.
A Growing Relationship Between Tesla and Zelestra
This agreement is the second between Tesla and Zelestra. In 2024, the companies signed a 57-MWac PPA covering three solar plants in Spain’s Castilla-La Mancha region. The Lumen Farm deal is their first collaboration in the United States.
Zelestra US CEO Phil North commented, “As a trusted global partner, we can deliver bespoke solutions for clients in multiple geographies,” and added, “As such, we are excited to expand our relationship with Tesla to the US.”
Solar Competition Intensifies in Texas
Zelestra has become a key developer in the Texas solar market, with other major customers including Meta. The company has signed solar PPAs with Meta for the 180-MWdc Palmera project and the 176-MWdc Skull Creek plant, and secured $600 million in green financing for a 440-MW Texas portfolio backed by Meta contracts.
Tesla’s decision to buy from Zelestra places it in direct competition with other large technology firms seeking clean energy to support rapidly growing electricity needs in Texas.
Tesla’s Solar Strategy: Buy or Build?
Although Tesla is a major player in solar technology—having acquired SolarCity in 2016 for $2.6B (~AUD 3.7B)—the company is opting to purchase power from Zelestra rather than build its own utility-scale solar farm for this project. Tesla continues to sell solar panels and the Solar Roof, and manufactures energy storage products like the Powerwall and Megapack.
Tesla is also constructing a 100-GW solar panel factory near Houston, Texas, and has recently relaunched solar leasing and introduced a US-made solar panel in January. However, for now, Tesla is sourcing external solar supply to meet its operational needs in Texas.
Why this matters
Tesla’s agreement to purchase all the output from the Lumen Farm solar project highlights the increasing demand for clean energy among major technology companies operating in Texas. As electricity needs grow for facilities like Gigafactory Texas and AI compute centers, securing reliable renewable power is becoming a strategic priority.
The deal also underscores the competitive landscape for large-scale solar in Texas, with companies like Tesla and Meta turning to developers such as Zelestra to meet their sustainability goals.
What this means for buyers
For consumers and businesses in Texas, Tesla’s move signals continued growth in the state’s renewable energy sector. As more large-scale solar projects come online, the availability of clean electricity is likely to increase, potentially supporting broader adoption of electric vehicles and renewable-powered operations.
Buyers interested in solar solutions may also benefit from the increased focus on domestic manufacturing and new product offerings from companies like Tesla.
Key Specs
- Solar Farm Name: Lumen Farm
- Capacity: 140 MWac
- Developer: Zelestra
- Construction Start: 2027
- Expected Online Date: 2029
- Tesla-Zelestra US Deal: First in the US, second overall
- Zelestra Portfolio: Over 16 GW of renewable projects
Source
Images sourced from: electrek.co, saurenergy.com, inverse.com
