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Ormat was established in 1965 by Lucien Y. Bronicki and his wife Dita, focusing on solar energy development. In 1966, it installed a 600-watt Organic Rankine Cycle unit in Mali for water pumping.

By the 1970s, the company supplied units to telecommunications and oil sectors, including 120 units for Alyeska Pipeline in Alaska. Post-1973 oil crisis, interest in solar energy rose, leading to the construction of a 5 MW Solar Pond Power Plant in 1982.

In the 1980s, Ormat pivoted to geothermal and renewable energy systems, launching its first commercial ORC project in 1984. The 1990s saw its expansion into international projects, including a 150 MW complex in Kenya.