ACME Solar Holdings Limited (ACME Solar), one of India’s leading integrated renewable energy players, has made a landmark announcement on 11th September 2025. Its wholly owned subsidiary, ACME Venus Urja Private Limited, has successfully secured long-term project funding worth ₹3892 crore from the State Bank of India (SBI). The funding will be used for the development and construction of a 400 MW Firm and Dispatchable Renewable Energy (FDRE) project in Barmer, Rajasthan.

This deal marks a significant milestone for both ACME Solar and SBI. It represents ACME’s largest ever financing from SBI and simultaneously becomes SBI’s first-ever funding for ACME’s FDRE projects. Spread across a repayment period of 19 years, this financing ensures a sustainable financial model for one of India’s most ambitious renewable projects.

Importance of the 400 MW FDRE project

The 400 MW FDRE project in Barmer, Rajasthan, is a crucial development in India’s renewable energy landscape. Unlike traditional renewable projects that face challenges of variability due to weather conditions, FDRE projects integrate solar power generation with Battery Energy Storage Systems (BESS).

This ensures a higher level of reliability and dispatchability, meaning the power generated can be supplied more consistently to the grid as per the Power Purchase Agreement (PPA) commitments. In this case, the project has been contracted with NHPC at a tariff of ₹4.64 per unit, ensuring a viable and competitive pricing model.

By combining solar panels with battery storage, ACME Solar is addressing one of the key concerns of renewable energy—its intermittency. Such projects pave the way for round-the-clock renewable energy supply, making them highly valuable for India’s power sector transformation.

Why SBI’s involvement is significant

The participation of State Bank of India (SBI) in this project is of immense importance. As the largest public sector bank in India, SBI’s involvement indicates a strong confidence in renewable energy as a long-term investment area.

This financing is not only ACME Solar’s largest from SBI but also marks SBI’s first step into funding ACME’s FDRE projects. By supporting such projects, SBI is strengthening its commitment towards green financing and India’s renewable energy transition goals.

The ₹3892 crore long-term funding, with a repayment tenure of 19 years, provides ACME Solar the stability required to develop, commission, and operate this large-scale project effectively.

ACME Solar’s growing leadership

ACME Solar Holdings Limited has established itself as a leading integrated renewable energy company with a diversified portfolio that spans:

• Solar power generation

• Wind energy projects

• Hybrid renewable energy solutions

• Battery Energy Storage Systems (BESS)

• Firm and Dispatchable Renewable Energy (FDRE) projects

Currently, the company has an operational capacity of 2,890 MW across India. What sets ACME apart is its in-house Engineering, Procurement, and Construction (EPC) capabilities, combined with a robust Operations and Maintenance (O&M) division.

By managing the complete value chain internally, ACME Solar ensures timely project delivery, cost efficiency, and industry-leading operating performance. Its strong track record is evident in its high Capacity Utilisation Factor (CUF) and healthy operating margins.

The Barmer project: A step towards energy security

The location of the project in Barmer, Rajasthan, is strategically chosen. Rajasthan, with its high solar irradiance levels, is one of India’s top states for solar power development. By adding Battery Energy Storage Systems, ACME ensures that the region can contribute significantly to India’s goal of firm and reliable renewable energy supply.

This project will play a major role in meeting local and national demand while also supporting India’s push towards reducing dependence on fossil fuels. The PPA with NHPC ensures that the power generated will be absorbed under long-term agreements, reducing revenue risks for ACME.

The role of FDRE in India’s renewable energy transition

As India accelerates its transition to renewable energy, Firm and Dispatchable Renewable Energy (FDRE) has emerged as a game-changer. Unlike conventional solar or wind projects, FDRE ensures continuous and predictable power supply, which is crucial for grid stability.

The integration of BESS helps in storing excess power generated during peak sunlight hours and releasing it when demand rises or when sunlight is unavailable. This ensures:

• Improved grid reliability

• Reduced dependency on fossil fuels

• Better utilisation of renewable capacity

• Increased investor and lender confidence

By developing this project, ACME Solar is positioning itself as a pioneer in FDRE solutions, which are expected to play a major role in India achieving its 500 GW renewable energy target by 2030.

Financial and industry impact

The financing of ₹3892 crore from SBI is not only important for ACME Solar but also has a broader impact on the renewable energy financing ecosystem in India. It demonstrates that:

1. Large-scale FDRE projects are financially viable and can attract significant lending from established institutions like SBI.

2. Banks and financial institutions are increasingly aligning with sustainable and green investment mandates.

3. Such deals can act as a catalyst for future FDRE projects, encouraging more developers to adopt hybrid renewable models.

This step by SBI will likely encourage other Indian banks to increase their exposure to renewable energy funding, particularly in projects that combine storage with generation.

ACME Solar’s future outlook

ACME Solar continues to focus on expansion, diversification, and technological integration. With a presence across multiple renewable energy technologies, it aims to play a central role in shaping India’s energy future.

Its strategy includes:

• Scaling up FDRE and hybrid projects

• Expanding operational capacity beyond 2,890 MW

• Enhancing Battery Energy Storage capabilities

• Strengthening long-term partnerships with institutions like SBI and NHPC

The Barmer project is not only a testament to ACME’s capabilities but also a blueprint for future renewable projects that combine generation with storage for assured supply.

Conclusion

The announcement that ACME Solar has secured ₹3892 crore funding from SBI for its 400 MW FDRE project in Barmer, Rajasthan, is a major development in India’s renewable energy sector. It highlights the growing importance of firm and dispatchable renewable projects, the confidence of financial institutions in the sector, and ACME Solar’s ability to lead from the front.

By integrating solar generation with BESS, the project sets a benchmark for future-ready renewable infrastructure in India. With its largest SBI financing and the first FDRE-focused funding from SBI, ACME Solar has reinforced its leadership position in India’s clean energy transformation.

As India works towards its ambitious 2030 renewable targets, projects like this will play a critical role in ensuring energy security, reducing carbon emissions, and building a sustainable future.

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