Sahaj Solar Limited has secured a major contract by signing a 25-year Renewable Energy Service Company (RESCO) agreement with the Uttar Pradesh Renewable Energy Development Agency. This strategic partnership represents a significant milestone for the company in expanding its renewable energy footprint in one of India's largest states.

Agreement Details

The comprehensive agreement encompasses solar power systems with varying capacities to meet diverse energy requirements across different installations.

Strategic Significance

The RESCO model allows Sahaj Solar to develop, finance, and operate solar power systems while providing clean energy solutions to end users. Under this arrangement, the company will be responsible for the complete lifecycle management of the solar installations, from initial setup to ongoing maintenance and operations.

This partnership with the Uttar Pradesh Renewable Energy Development Agency positions Sahaj Solar to contribute meaningfully to the state's renewable energy targets. The flexible capacity range from 200 KW to 2000 KW enables the company to cater to various customer segments, from medium-scale commercial establishments to larger industrial facilities.

Business Impact

The 25-year contract duration provides Sahaj Solar with long-term revenue visibility and stability. The RESCO model typically involves recurring revenue streams through power purchase agreements, offering predictable cash flows over the contract period. This agreement strengthens the company's position in the competitive renewable energy sector and demonstrates its capability to secure substantial government partnerships.

Sahaj Solar has successfully secured a ₹125 crore loan facility from the Indian Renewable Energy Development Agency (IREDA), marking a significant milestone in the company's expansion strategy for solar energy projects. The funding agreement will support the implementation of PM-KUSUM solar pump installations and off-grid solar initiatives across four states.

Strategic Partnership with IREDA

Sahaj Solar has entered into this substantial financing arrangement with IREDA, India's premier renewable energy financing institution. The partnership demonstrates IREDA's confidence in Sahaj Solar's capabilities to execute large-scale solar projects and contribute to India's renewable energy objectives.

PM-KUSUM Initiative Focus

The loan facility will primarily support Sahaj Solar's participation in the PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme, a government initiative aimed at providing energy security to farmers. The company plans to utilize the funds to install solar pump systems that may help farmers reduce their dependence on grid electricity and diesel-powered pumps.

Off-Grid Solar Expansion

Beyond solar pumps, the financing is expected to enable Sahaj Solar to expand its off-grid solar solutions across the targeted four states. These initiatives are designed to bring clean energy access to remote and underserved areas, supporting rural electrification and sustainable development goals.

Market Implications

This loan agreement positions Sahaj Solar to potentially capitalize on the demand for renewable energy solutions in India's agricultural and rural sectors. The partnership with IREDA provides the company with capital that could be used to scale its operations and establish a stronger presence in the solar energy market across multiple states.

The completion of this ₹125 crore loan agreement with IREDA reinforces Sahaj Solar's commitment to strengthening its renewable energy portfolio and contributing to the PM-KUSUM solar pump and off-grid initiatives. This strategic move is expected to boost the company's capabilities in delivering sustainable energy solutions across the four targeted states.