ACME Solar Signs 300 MW Wind-Solar Hybrid PPA

ACME Solar Holdings builds and operates massive solar and wind farms, along with giant battery storage systems, across India—selling the electricity they generate under 25-year contracts to government-backed buyers like SECI and NTPC. On July 21, 2026, the company announced it had signed a Power Purchase Agreement with SECI for a 300 MW wind-solar hybrid project at a tariff of ₹3.25 per unit, with supply set to commence by June 30, 2028. The deal lifts ACME’s total PPA-signed portfolio to 6,870 MW out of a total contracted base of 8,070 MW, locking in long-term revenue visibility as the company pivots its strategy toward hybrid and storage-backed power that commands higher tariffs and stronger demand from state buyers.

The Deal In Context: A Growing PPA-Signed Base

The 300 MW hybrid PPA adds to a portfolio that has expanded steadily over the past year.

The under-construction portfolio now stands at 5,080 MW, of which 3,880 MW is PPA-signed . The new 300 MW SECI hybrid project will be among those built over the coming two years, with commissioning targeted by mid-2028 .

Why Hybrid Matters: The Strategic Shift Toward Peak Power

ACME Solar’s management has been clear that plain solar is becoming harder to sell. On the Q4 FY26 earnings call, CEO Nikhil Dhingra noted that “plain solar is the hardest to sell” because states increasingly demand at least one to two hours of peak power supply . Wind-solar hybrid projects—and especially those paired with battery storage—solve this demand by combining generation sources to deliver power when it is most needed.

The ₹3.25 per unit tariff on this new hybrid PPA sits in the middle of ACME’s tariff range. Older solar projects in the operational portfolio carry tariffs from ₹2.44 per unit (Rajasthan SECI projects) to ₹3.05 per unit for the more recent Sikar plant, with a weighted average operational tariff of ₹3.4 per unit . The under-construction portfolio, which is heavier on FDRE and hybrid projects that include storage, carries a higher weighted average tariff of ₹4.4 per unit . Management has consistently stated that these hybrid and FDRE projects deliver “high teen” returns—around 16% or higher—despite the added cost of battery installation .

Financial Backdrop: Scaling Up, Leveraging Up

The PPA signing comes against a backdrop of rapid financial scaling. Consolidated revenue for FY26 reached ₹2,023.38 crore, up 44% year-on-year, while net profit nearly doubled to ₹497.88 crore .

This growth has been capital-intensive. Total borrowings stood at ₹18,988 crore as of March 2026, with a debt-to-equity ratio of 3.75x, up from 2.31x a year earlier . Capex for the year was ₹5,321 crore, and free cash flow was deeply negative at -₹4,073 crore . Management has secured financing of around ₹15,000 crore during FY26 for under-construction projects and refinanced ₹3,300 crore of operational debt, cutting interest rates by about 150 basis points . The weighted average cost of debt for operational projects is now 8.4% per annum .

For the 300 MW hybrid project specifically, the capex will be funded through the standard 75:25 debt-to-equity mix the company follows for its projects . The tariff of ₹3.25 per unit, with the requirement to include roughly one hour of battery storage, is expected to preserve project-level returns in the high teens, management has said .

BESS: Early Cash Flows Before PPA Kick-In

A distinctive feature of ACME’s execution strategy is the early commissioning of battery storage ahead of full project completion. The company has already operationalized over 2.3 GWh of battery capacity, running it on merchant and short-term contracts while waiting for associated solar and wind projects to come online . This merchant BESS is generating approximately ₹2.2 crore per day in net revenue, with management guiding that 1 GWh of battery can produce around ₹170 crore of annual EBITDA assuming a ₹5 arbitrage between buy and sell prices .

The under-construction portfolio will require approximately 17 GWh of battery installation, and management is targeting 1.5 GW of generation assets and 10 GWh of battery commissioning in FY27 . Several of these batteries will first operate on a merchant basis—charging during solar hours when prices are low and discharging during peak evening hours—before being integrated into their respective FDRE or hybrid PPAs for 25-year contracted supply .

---

The Deal In Context: A Growing PPA-Signed Base

Why Hybrid Matters: The Strategic Shift Toward Peak Power

Financial Backdrop: Scaling Up, Leveraging Up

BESS: Early Cash Flows Before PPA Kick-In

Sources