CRISIL, one of India’s leading credit rating agencies, has assigned an 'AA-/Stable' rating to the ₹890 crore long-term bank facility availed by ACME Raisar Solar Energy Pvt Ltd (ARSEPL), a wholly owned subsidiary of ACME Solar Holdings Limited, for its 300 MW solar power project located in Fategarh, Rajasthan. This rating is considered among the higher tiers of creditworthiness for long-term instruments in India and reflects the project’s robust financial position, high revenue visibility, and dependable cash flows.

The ₹890 crore term loan is being financed by REC Ltd, a government-backed infrastructure financing institution. With this rating, ACME Solar Holdings Limited, a prominent name in India’s renewable energy space, further strengthens its credibility and market standing. This recognition from CRISIL brings positive implications for the company’s cost of borrowing and future investment prospects.

The CRISIL AA-/Stable rating has been attributed to several key strengths of the ACME Raisar Solar project:

• Strong revenue predictability owing to a 25-year Power Purchase Agreement (PPA) with the Solar Energy Corporation of India (SECI).

• A fixed tariff mechanism that ensures consistent revenue over the contract duration.

• SECI’s track record of timely payments, which significantly reduces counterparty risk and adds to the financial predictability of the project.

These factors combined have led CRISIL to view the project as a secure and sustainable investment in India’s evolving renewable energy landscape. The report particularly underscores that ARSEPL’s operations are already stabilised, having completed six months of operational performance, and are showing signs of efficient debt servicing.

Reduction in Cost of Borrowing

As a direct result of this rating assignment, ACME Solar is expecting to reduce its existing interest rate on the ₹890 crore loan by 75 basis points, bringing it down to 8.95%. This interest rate benefit, effective from this month, will lead to substantial cost savings on interest outgo. Additionally, the company anticipates further reduction in borrowing costs, driven by two potential developments:

1. Base rate reductions from the existing lender (REC Ltd).

2. Refinancing opportunities with other financial institutions, which could offer better terms following the high CRISIL rating.

This reduction in interest burden is a significant milestone for the ACME Raisar Solar project, which is now better positioned to generate higher operating margins and improved return on investment.

Operational and Financial Strengths of ACME Solar

ACME Solar Holdings Limited, formerly known as ACME Solar Holdings Private Limited, has emerged as a leading integrated renewable energy company in India. With a diversified and expanding portfolio of 6,970 MW of renewable capacity and 550 MWh of storage projects, the company operates across solar, wind, storage, FDRE (Firm and Dispatchable Renewable Energy), and hybrid energy segments.

Out of this extensive portfolio:

• 2,890 MW is already operational, reflecting the company’s capability in successfully commissioning and managing utility-scale renewable projects.

• The remaining 4,080 MW and 550 MWh of projects are at various stages of development and are expected to be operational in the near future.

What differentiates ACME Solar is its in-house EPC (Engineering, Procurement, and Construction) and O&M (Operations and Maintenance) capabilities. This vertical integration enables the company to execute projects more efficiently, ensuring:

• Timely delivery

• Cost optimisation

• High operating performance

These operational efficiencies are evident in the industry-leading CUF (Capacity Utilisation Factor) and superior operating margins, giving ACME Solar a competitive advantage in a sector known for tight margins and high execution risks.

CRISIL’s Stable Outlook

CRISIL has also assigned a “Stable” outlook to the assigned rating. This outlook is supported by the following assumptions:

• Timely and predictable payments from SECI, which remains the counterparty under the PPA.

• Continued operational stability of the ACME Raisar Solar project, with no major disruptions in generation or revenue collections.

• No significant deviation in operating and financial performance metrics that could affect debt servicing ability.

The “Stable” tag provides reassurance to investors, lenders, and other stakeholders that the project is expected to maintain its credit profile over the near to medium term.

Industry Implications and Market Standing

With India’s growing focus on clean energy transition, this move is a positive development for the entire renewable energy sector. Ratings like these boost investor confidence, attract foreign and domestic investments, and encourage policy support for green energy initiatives.

Furthermore, this development sets a precedent for similar projects, highlighting the importance of:

• Strong counterparties like SECI

• Long-term PPAs with fixed tariffs

• Operational stability

• Vertical integration in execution and O&M

These elements are crucial for securing favourable credit ratings, reducing cost of capital, and ensuring long-term project viability.

Future Prospects

Going forward, ACME Solar is expected to continue leveraging its strengths in project development, execution, and maintenance. The company is also likely to explore:

• Green bond issuances

• Public-private partnerships

• International funding options

• Expansion into newer geographies and hybrid energy formats

These strategies will further deepen its footprint in India’s renewable energy landscape and ensure sustainable, long-term growth.

The assignment of the CRISIL AA-/Stable rating is more than just a credit endorsement—it is a testament to ACME Solar’s strategic planning, execution capabilities, and financial discipline. It validates the company's leadership in renewable energy, enhances its market reputation, and strengthens its ability to attract low-cost financing in future ventures.

As India continues to advance towards its net-zero emissions targets and transitions to a greener grid, companies like ACME Solar Holdings Limited are playing a pivotal role in shaping the country’s sustainable energy future.

In conclusion, this CRISIL rating milestone not only brings financial benefits to ACME Raisar Solar Energy Pvt Ltd but also reaffirms the company’s credibility and operational excellence. It highlights the importance of strategic partnerships, sound financial planning, and execution discipline in building successful, scalable, and sustainable energy businesses in India.

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