ACME Solar Secures ₹1,100 Crore SBI Refinancing for 300 MW Rajasthan Renewable Project, Lowers Debt Costs and Bolsters Expansion

Major Fiscal Boost Through Long-Term Refinancing

ACME Solar Effects Limited has successfully refinanced the debt of its 300 MW operational renewable energy project in Rajasthan, securing a ₹1,100 crore facility from the State Bank of India (SBI) over a 17-year term.

The refinancing, routed through a CRISIL AA–rated subsidiary, achieves a borrowing cost reduction of approximately 100 basis points. This marks a significant financial milestone, strengthening ACME’s credit profile and underlining the growing appetite of domestic lenders for renewable energy assets.

Strong Operational Performance Drives Cheaper Capital

Commissioned just six months ago, the Rajasthan solar project has consistently delivered robust capacity utilisation factor (CUF) levels, ensuring stable and predictable cash flows across ACME’s portfolio.

The company highlighted that this refinancing aligns with its broader strategy to optimise financing costs across its 2,890 MW operational portfolio, which spans solar, wind, storage, hybrid, and FDRE (Firm and Dispatchable Renewable Energy) assets.

By maintaining financial discipline and operational stability, ACME has positioned itself for credit rating upgrades, further reducing its future cost of capital.

Sector Context: Green Energy, Credit, and Growth

With this SBI facility, ACME significantly lowers its interest burden, freeing up capital to invest in the next wave of renewable projects. Deals of this nature are pivotal for India’s clean energy transition, where developers rely on long-term, affordable domestic finance to recycle capital, strengthen balance sheets, and scale up deployment.

India’s renewable energy ambitions are expanding rapidly:

• The country auctioned 59 GW of renewable capacity in 2024 alone.

• The sector attracted over $25 billion in new financing, including project finance, green bonds, and equity infusions.

As renewable projects grow more complex — integrating solar-wind hybrids, storage solutions, dispatchable renewables, and green hydrogen initiatives — cost-effective financing frameworks will become increasingly critical.

A Benchmark for Domestic Green Project Finance

ACME’s refinancing demonstrates how mature assets with proven operational performance can attract competitive, long-tenor domestic financing despite market volatility.

This transaction sets a benchmark for the sector, showcasing the role of strong credit discipline and transparency in unlocking capital at lower costs. By doing so, ACME not only strengthens its own growth platform but also contributes to India’s broader mission of achieving over 50% clean energy capacity by 2030.