In a major development for the Indian renewable energy sector, Insolation Green Energy Private Limited, a wholly owned subsidiary of Insolation Energy Limited, has been awarded a significant Letter of Intent (LOI) by Jaipur Vidyut Vitran Nigam Limited (JVVNL). This LOI pertains to the design, survey, supply, installation, testing, commissioning, and 25 years of operation & maintenance of solar power plants under the RESCO mode for 58 different sites. These sites fall under the Component A of the PM-KUSUM scheme, aimed at promoting decentralized solar energy generation and improving grid stability in rural India.

The combined capacity of the awarded projects totals an impressive 109.79 MW, with expected annual generation of over 17.56 crore units of electricity. This project is poised to become one of the landmark solar ventures in Rajasthan under the PM-KUSUM scheme.

Project Breakdown and Commercial Terms

The LOI details three different tariff structures for the awarded 58 sites:

• 51 sites (96.59 MW) at a levelized tariff of ₹2.55 per unit

• 6 sites (12 MW) at ₹3.037 per unit

• 1 site (1.2 MW) at ₹3.04 per unit

These tariffs are competitively priced and are indicative of Insolation Green's strategy to aggressively scale solar operations while ensuring commercial viability.

The cumulative capital investment involved in executing the project is approximately ₹380 crore (inclusive of GST). Execution is scheduled to be completed by the end of Q1 of the financial year 2026–27, indicating a robust timeline to roll out this large-scale renewable energy operation.

Annual Energy Generation and Revenue Projection

The annual power generation and expected revenue from the 109.79 MW capacity are detailed below:

This projected ₹45.82 crore in annual revenue is set to positively impact the company’s top-line figures and reaffirm its focus on long-term annuity-based income from solar assets.

Scope of Work and Regulatory Alignment

The scope of the awarded contract is comprehensive, involving:

• Design and engineering of solar systems

• Survey and site preparation

• Supply and installation of all necessary components

• Testing and commissioning

• A substantial Operation and Maintenance (O&M) contract lasting 25 years post commissioning

This approach ensures not only the setup but also the long-term sustainability of the projects under a professional and technically sound framework.

The disclosure has been made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, supported by circulars dated July 13, 2023, November 11, 2024, and December 31, 2024, mandating detailed public disclosure of such material events.

Strategic and Financial Implications

The project significantly strengthens Insolation Green Energy’s portfolio, pushing its total capacity closer to the 500 MW milestone, considering past and upcoming projects. For Insolation Energy Limited, this represents another successful step in becoming a key player in India’s energy transition narrative.

More importantly, the RESCO model allows for capital-light power procurement by DISCOMs like JVVNL, while allowing the developer to own, operate, and monetize the projects through long-term power purchase agreements (PPAs). The levelized tariff for most of the sites is below ₹3 per unit, aligning with market benchmarks and ensuring affordability for the DISCOMs and end consumers.

From a financing perspective, this ₹380 crore investment could be funded through a mix of internal accruals, term loans, and external funding options, with possible interest from green bond issuances or climate-aligned funding instruments.

No Conflict of Interest or Related Party Involvement

As explicitly stated in the disclosure:

• The promoter or promoter group has no interest in JVVNL, the awarding authority.

• The transaction does not qualify as a related party transaction, reinforcing transparency and independence in business dealings.

About PM-KUSUM Component A Scheme

The PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme is a flagship initiative of the Government of India, under which Component A specifically aims at the installation of decentralized grid-connected renewable power plants up to 2 MW capacity each by individual farmers, cooperatives, or private developers.

By participating in this program, Insolation Green not only contributes to India’s renewable energy and climate change mitigation goals but also supports rural energy access and farmer incomes.

Future Outlook

With the successful acquisition of this LOI, Insolation Green Energy is expected to:

• Strengthen its track record in government-backed solar initiatives

• Scale operations in Rajasthan, a state with abundant solar irradiance

• Improve top-line revenue and long-term O&M cash flows through annuity-type models

• Attract ESG-focused investors and financial institutions due to the clean energy and sustainable development alignment

The execution of this project will serve as a testament to the company’s execution strength, technical capabilities, and strategic foresight in capitalizing on India’s solar growth.

This disclosure marks a strategic win for Insolation Energy Limited and affirms its commitment to India’s renewable energy vision. As the execution progresses into FY 2026–27, stakeholders, investors, and regulators will closely track project milestones, with expectations of timely delivery, efficiency, and revenue realization from these assets.

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