Solar stock jumps 6% after signing 25-year agreement with UP Govt for rooftop solar projects

SYNOPSIS: Sahaj Solar signed a 25-year RESCO agreement with UPNEDA to develop 200-2,000 kW rooftop solar projects across Uttar Pradesh, covering design, execution, O&M, with fixed tariffs and net-metering.

Shares of a vertically integrated renewable energy company involved in manufacturing solar products and providing EPC services surged more than 6 percent on Wednesday, after entering into a 25-Year RESCO Deal with Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA).

At 11:41 a.m., shares of Sahaj Solar Limited were trading in the green at Rs. 172.5 on NSE, up by around 3 percent, compared to its previous closing price of Rs. 167.4, with a market cap of Rs. 379 crores. The stock is currently trading at a discount of around 47 percent from its 52-week high of Rs. 323.55 recorded on 24th April 2025.

What’s the News

According to the latest disclosures filed with the NSE, Sahaj Solar Limited has entered into a RESCO Model Agreement with Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) to implement a grid-connected rooftop solar project across Uttar Pradesh.

Under the agreement, Sahaj Solar will undertake the design, engineering, supply, erection, testing and commissioning of rooftop solar PV systems, along with warranty, operation & maintenance (O&M) for 25 years. The project will cover capacities ranging from 200 KW to 2000 KW for government/semi-government buildings at multiple locations in the state, executed under the RESCO Model on a net-metering basis.

The tariff is fixed for 25 years and is inclusive of all taxes, insurance, and grid-related costs. The systems are categorised into two capacity bands – 200-1,000 kW and 1,000-2,000 kW.

The agreement also stipulates a 25-year warranty covering equipment, workmanship, and spares, with provisions for transferring warranties to the rooftop owner. O&M will include regular panel cleaning, preventive and breakdown maintenance, monthly meter readings, online performance monitoring, and round-the-clock customer support through a toll-free system.

Operational performance standards include maintaining a minimum capacity utilisation factor (CUF) of 15 percent with defined tolerance bands throughout the 25-year contract period. UPNEDA reserves the right to conduct inspections and appoint third-party agencies for verification. The agreement includes force majeure provisions, liquidated damages for commissioning delays, and payment mechanisms under the agreement, with surplus power adjusted through net-metering.

Financials & More

Sahaj Solar reported a significant growth in revenue from operations, experiencing a year-on-year increase of more than 13 percent, from Rs. 98 crores in H1 FY25 to Rs. 111 crores in H1 FY26. Likewise, its net profit increased during the same period from Rs. 4.7 crores to Rs. 5.12 crores, representing a marginal rise of over 9 percent YoY.

As of H1 FY26, the company reported an order book of Rs. 320 crore, supported by a 27 MW international project pipeline, and has outlined a capex plan of Rs. 50 crore.

The company has outlined a strong growth outlook, targeting a revenue CAGR of 35-40+ percent over the next three years, alongside EBITDA margins exceeding 12 percent in the same period. Growth is expected to be driven by project completions worth over Rs. 300 crore by FY26, a significant capacity expansion from 100 MW to 1,600 MW by FY27, with 750 MW scheduled for completion by March 2026. 

Sahaj Solar Limited is one of the leading Indian renewable energy companies specialising in solar power solutions, with core businesses including PV module manufacturing, solar water pumping systems, and EPC services.

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