ACME Solar secures INR 2,647 crore funding from REC for 450 MW FDRE project

What ACME Solar announced

On 16 July 2026, ACME Solar Holdings Limited disclosed that it has secured Rs 2,646.64 crore of long‑term project financing from REC Ltd. The funds are earmarked for the development and construction of the company’s ACME Greentech Seventh 450 MW/1800 MWh Assured Peak Power Project, a hybrid renewable installation that blends solar generation with a Battery Energy Storage System (BESS). The announcement was filed voluntarily with the BSE and NSE under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements.

Funding arrangement with REC Ltd

REC Ltd has agreed to act as the sole financier for the 450 MW project for a 20‑year tenure. The financing is structured as a long‑term loan, although the filing does not disclose the interest rate, repayment schedule, or security package. By providing the entire capital requirement, REC eliminates the need for ACME Solar to raise additional equity or seek multiple lenders, thereby simplifying the capital structure for this specific asset.

The Rs 2,646.64 crore funding will be deployed across the project’s development phases, including land acquisition, engineering, procurement, construction (EPC), and commissioning of both the solar plant and the accompanying BESS. No details were provided on any covenants or performance guarantees attached to the loan.

Project overview and PPA terms

The ACME Greentech Seventh Assured Peak Power Project is designed as a Flexible Distributed Renewable Energy (FDRE) asset. It will generate 450 MW of solar power and store 1800 MWh of electricity in a battery system, enabling higher predictability and dispatchability compared with a stand‑alone solar farm.

A Power Purchase Agreement (PPA) has been signed with SJVN Limited, a major Indian power utility. The PPA stipulates a tariff of Rs 6.74 per unit (kWh) and runs for 25 years, providing a long‑term revenue stream that underpins the project's financial viability. The combination of solar and storage is expected to improve capacity utilisation factor (CUF) and operating margins, aligning with ACME Solar’s strategy of delivering high‑performance renewable assets.

Key facts at a glance

Why this matters for investors

The financing arrangement is non‑dilutive, meaning existing shareholders are not exposed to immediate equity dilution. By locking in a long‑term, low‑cost loan from a reputable financier, ACME Solar can progress the project without the uncertainty of future capital market conditions. The 25‑year PPA at a fixed tariff provides revenue certainty, which is a key metric for lenders and rating agencies when assessing project risk.

From a portfolio perspective, the 450 MW FDRE asset adds to ACME Solar’s under‑construction pipeline of 5,080 MW, of which roughly 18 GWh of BESS capacity is already planned. The company’s total contracted capacity now stands at 8,070 MW, indicating a robust pipeline that can sustain growth. The inclusion of storage aligns with India’s policy push for more dispatchable renewable power, potentially enhancing the asset’s marketability and operational margins.

Investors should note that the filing does not disclose any interest rate, debt service coverage ratio, or collateral details, which are material to assessing the financing cost. Additionally, the announcement is a voluntary filing and not a regulatory requirement, suggesting the company chose to inform the market proactively.

Conclusion

ACME Solar’s receipt of Rs 2,646.64 crore from REC Ltd marks a significant step toward the execution of its 450 MW FDRE project. The 20‑year debt financing, coupled with a 25‑year PPA at Rs 6.74/kWh, provides a clear financial framework for the asset. While the funding is non‑dilutive, the lack of disclosed loan terms means investors will need to await further details—potentially in future quarterly reports or financing agreements—to fully gauge the impact on the company’s balance sheet and cash flows.