Aklera Power Technology has received Rs 4.74 billion as change-in-law compensation for its 250 MW solar project in Rajasthan, due to regulatory revisions impacting project costs. This compensation will mitigate additional expenses from statutory and policy changes post-commissioning and support the plant’s financial viability, ensuring continued power supply to the Solar Energy Corporation of India (SECI). The decision also enhances regulatory clarity for renewable developers in high-capacity solar parks in the region. ACME Solar Holdings has taken a major step forward in reinforcing financial resilience and regulatory readiness through a landmark decision.

By the Rajasthan Electricity Regulatory Commission (RERC). The company’s wholly-owned subsidiary, ACME Aklera Power Technology, has successfully secured ₹47.40 crore as “change-in-law” compensation for its 250 MW solar project that was awarded via SECI (Solar Energy Corporation of India).  This ruling highlights the evolving landscape of policy risk management in India’s renewable energy sector (Solar) with implications not just for ACME but for the broader IPP (Independent Power Producer) community. The crux of ACME’s claim lies in unanticipated regulatory shifts that had materially increased the project’s cost base. Specifically, the RERC recognized.

Severely Affects Economics

That ACME incurred an extra financial burden due to the imposition of Basic Customs Duty (BCD) on solar cells and modules, along with a significant jump in GST, from 5% to 12%. In Indian solar power projects, such cost escalations can severely affect the economics, especially when long-term power purchase agreements (PPAs) were signed under different assumptions. Moreover, the regulator took into account “carrying cost,” the additional costs that accrue between the time when the expenses are incurred and when a compensation order is issued. After careful adjudication, RERC allowed ACME’s claims approximately to the tune of ₹39.92 crore for BCD and GST.

Combined, plus a further ~₹7.50 crore as carrying cost, the overall compensation total was set at ₹47.40 crore, and the payments will be structured as an annuity over 15 years with a discount rate of 9%, thereby ensuring that ACME recovers its costs in a way that supports project stability and cash flow predictability From ACME Solar’s perspective, this is not merely a financial win: it’s a regulatory precedent. The company has publicly stated that RERC’s decision “reinforces investor confidence” by providing a clearer, more stable framework for cost recovery when unanticipated policy risks emerge for developers in a capital-intensive, policy-sensitive industry like solar. Such regulatory affirmations are extremely valuable.

MW Solar Project In Rajasthan

This compensation also ties directly into ACME’s broader strategic financial management. Earlier in 2025, ACME Solar secured a ₹1,072 crore refinancing from a consortium led by Bank of America and Standard Chartered for the same 250 MW solar project in Rajasthan. That refinancing deal came with a lower cost of debt (8.5% interest), and it is part of ACME’s strategy to optimize its capital structure as more projects become operational. By combining the benefit of compensation with favorable refinancing, ACME strengthens its balance sheet and supports long-term project viability.

From a regulatory standpoint, the RERC’s ruling may act as an industry benchmark. Solar projects, especially those executed under SECI or other government-backed programs, are vulnerable to policy shifts. When duties or tax rates change, IPPs often cannot absorb the entire burden without some form of relief. Change-in-law compensations, like what ACME obtained, can encourage other developers to lodge claims, thereby pushing regulators to evolve more robust frameworks for cost recovery. In turn, this could spur more investment in the sector because of enhanced regulatory predictability. Beyond ACME itself, this decision may have knock-on effects.

For example, other project developers may now be more emboldened to file for similar claims, and regulators in other states or jurisdictions may be under increased pressure to adopt well-defined compensation mechanisms. That said, not all change-in-law claims are identical; the success of such claims depends heavily on the specific provisions of the Power Purchase Agreement (PPA), local regulatory regimes, the nature of the cost increases, and how convincingly the developer links those costs to changes in law. Meanwhile, from an investor’s perspective, this is a positive signal. ACME has demonstrated that it is capable of navigating regulatory risks and enforcing.

 India’s Renewable Energy Transition

Its contractual rights are effective. This kind of triumph can boost investor confidence, particularly among those who are wary of policy volatility. Clean-energy investors often demand not just strong operational metrics (like capacity utilisation factor, or CUF), but also risk-mitigation capabilities, and regulatory wins like this contribute strongly to the latter. ACME’s success story also aligns with broader themes in India’s renewable energy transition. The country continues to aggressively scale up solar and wind capacity to meet its decarbonization goals. Regulatory clarity on cost overruns, policy changes, and tax burdens is critical for sustaining that momentum.

In that context, rulings such as RERC’s in ACME’s favor could encourage more capital deployment as both domestic and international investors seek assurance of policy-backed protection. However, it’s important to note that change-in-law mechanisms are not a silver bullet. While they help recoup costs, they don’t eliminate underlying risk: new regulatory shifts could still emerge, or future cost burdens may be of a different nature. Moreover, accessing such compensation requires legal and regulatory engagement, which may not be feasible or economically justifiable for all projects, especially smaller ones. ACME Solar’s ₹47.40 crore award from.

RERC is more than just a financial gain; it is a signal moment in India’s solar sector. It underscores the value of strong contractual frameworks, the importance of regulatory recourse, and the capacity of developers to defend their financial interests. As ACME continues to scale its operational (Rajasthan) and under-construction capacity, including its Rajasthan projects, this ruling may serve as a cornerstone precedent for the renewable energy industry, strengthening investor trust and reinforcing the importance of predictable, transparent regulatory environments.

Q1. What exactly is “change-in-law” compensation?
Change-in-law compensation is a mechanism that allows project developers like ACME to recover extra costs incurred due to regulatory or policy changes, such as tax hikes or import duties, which were not anticipated when the project was originally contracted.

Q2. How much compensation did ACME receive?
ACME Aklera Power Technology secured ₹47.40 crore from RERC.

Q3. What drove the compensation claim?
The claim stemmed from the imposition of basic customs duty (BCD) on solar cells and modules, the increase of GST from 5% to 12%, and related carrying costs.

Q4. How will the amount be paid to ACME?
The ₹47.40 crore will be disbursed as an annuity over 15 years, at a 9% discount rate, ensuring fair recovery of the extra costs.

Q5. Why is this decision significant for the renewable energy sector?
RERC’s ruling sets a regulatory precedent, reinforcing cost stability and certainty for developers. ACME, in its statement, said it strengthens investor confidence and underlines a supportive regulatory environment for clean-energy growth.