How Heron Power plans to scale first transformer factory to 40 GW

A company called Heron Power is building a factory in Morgan Hill, California, to make a new kind of transformer for the electric grid. Transformers are the equipment that manages voltage between power sources and the grid, and traditional versions have been in short supply worldwide for years, slowing down solar, battery, and data center projects that need to connect. Heron Power's product, called Heron Link, is a "solid-state transformer" — it replaces bulky, oil-cooled equipment with a compact, software-controlled unit that can be adjusted remotely and may run more efficiently.

The company plans to start production in the second half of 2027 and eventually scale up to 40 gigawatts of capacity. It's still testing its manufacturing process and running real-world trials at solar and data center sites over the next year, including with early customers Intersect Power and Crusoe. The company says it doesn't expect the technology to cost more than conventional transformers, partly because of tariffs on imported power equipment and a federal ban on new foreign inverter models. Heron Power estimates its system could be 5 to 6 percent more valuable than standard alternatives over a project's lifetime, mainly through better efficiency.

This isn't a program homeowners can sign up for. It's a look at how the companies building solar, battery, and data center projects near you might get connected to the grid faster in the coming years, as new transformer technology works through testing and real-world use.