ACME Solar Holdings to expand capacity by 5GW by FY26.

ACME Solar Holdings plans to ramp up its renewable energy capacity to 5 gigawatts (GW) by the end of March 2026, with an investment of ₹17,000 crore starting April this year. The company further aims to increase its capacity to 7 GW by FY27.

As of H2 FY25, ACME Solar’s portfolio stood at 6,720 megawatts (MW), comprising 2,540 MW of operational capacity and 4,180 MW under construction. "We have 2.5 GW of operational capacity currently. For our under-construction projects, we are ready to proceed with capex in two phases,” said Nikhil Dhingra, CEO of ACME Solar Holdings.

Capacity Growth and Key Projects

In Q2 FY25, ACME Solar’s operational capacity increased to 2,540 MW from 1,340 MW in Q1 FY25. Of this, 67% serves central offtakers, while the rest is contracted with state utilities. The commissioning of a 1,200 MW inter-state transmission system (ISTS) connected plant in Rajasthan’s Jaisalmer has significantly contributed to this growth.

The Jaisalmer project, built under a 25-year power supply contract with the Solar Energy Corporation of India (SECI), has a capex of ₹4,400 crore per 1,200 MW. Adding one hour of storage (1,200 MWh) would increase costs by approximately ₹1,000 crore.

Financial Performance and Future Plans

ACME Solar won 1,900 MW capacity in FY25, bringing its total contracted portfolio to 6,970 MW. Power purchase agreements (PPAs) have been signed for 2,340 MW—53% of the under-construction capacity of 4,430 MW.

The company has reduced its net debt by ₹2,070 crore through IPO proceeds and secured ₹16,500 crore in debt financing for 1,700 MW of under-construction projects. Operational project refinancing has been secured at an average interest rate of 8.8% per annum.

ACME Solar has obtained grid connectivity for its 4,430 MW under-construction capacity, with an additional 2,000 MW available for future bids, positioning the company for continued expansion in India’s renewable energy sector.

HBL