Acme Solar Unit Secures ₹47.4 Cr Compensation Over GST and BCD Impact

Acme Solar subsidiary, ACME Aklera Power Technology (Petitioner), has now received relief in a petition filed before the Rajasthan Electricity Regulatory Commission (RERC) seeking compensation for Change in Law events. Acme had filed the petition with SECI as a respondent, for a 250 MW project awarded to it in 2019, and that was commissioned in two phases of 200 MW and 50 MW in 2023 and 2024 respectively.  

In a regulatory filling, ACME explained that in this case, the change arises from the increase in GST from 5% to 12% and the imposition of Basic Customs Duty (BCD) on solar modules and cells, along with carrying cost and interest on carrying cost, under Article 12 of the Power Purchase Agreement dated June 10, 2019, executed with SECI. 

Final Order

RERC, in its final order dated November 13, 2025, has allowed Change in Law compensation of ~Rs. 39.92 crores comprising: 

 ~Rs. 30.98 crores towards BCD 

~Rs. 8.94 crores towards GST

However, the bench ruled against any relief for on account of HSS transactions in  respect of non-MOOWR areas is disallowed and shall not be passed through  under Change-in-Law by the respondents, involving an amount of ₹6,06,83,542/- 
Acme's  claim of ₹1,76,06,556/- on account of margins in EPC  invoices, vendor invoices raised prior to 30.09.2021 and credit notes issued was also disallowed 

Compensation Granted

This compensation is being granted for the reconciled and undisputed amounts between the parties. RERC has further allowed carrying cost from the date of incurring up to the date of order, which is ~Rs. 7.50 crores.

Thus, the total amount allowed to the company is ~Rs. 47.40 crores. The admitted Change in Law amount is payable through the annuity mechanism at a 9% discount rate, over 15 years or the balance PPA term, whichever is less, with monthly annuity payments commencing from the 60th day from the Order or submission of claims, whichever is later. 

Delay beyond this period shall attract a Late Payment Surcharge as per the PPA. RERC has disallowed certain claims of BCD and GST of ~Rs. 7.82 crores, in respect of which the Company, based on legal advice, intends to file an appeal before the Appellate Tribunal for Electricity. 

About The Case

The recent base sets a precedent for renewable energy developers in India, showing that regulators will uphold change-in-law protections. It also provides certainty and stability for investors in solar projects, encouraging further renewable energy expansion. Moreover, it highlights the tension between policy changes (like duties to promote domestic manufacturing) and the financial health of ongoing renewable projects.

Timeline of Key Events