Sahaj Solar Limited has announced the signing of a significant RESCO Model Agreement with the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA). The agreement was executed and represents a strategic move for Sahaj Solar to expand its presence in the government and semi-government sectors of Uttar Pradesh. The company made this disclosure in line with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency for stakeholders and investors on the National Stock Exchange.
Under the agreement, Sahaj Solar is responsible for the design, engineering, supply, erection, testing, and commissioning of grid-connected rooftop solar photovoltaic (PV) systems across various government and semi-government buildings in Uttar Pradesh. The installations under this project will range in capacity from 200 kilowatts (KW) to 2,000 KW and will operate on a net-metering basis. A key feature of this partnership is its long-term nature, with the contract including a 25-year mandate for operation, maintenance (O&M), and warranty services.
The RESCO model followed in this agreement is performance-based. This means that the scale and success of the project will be determined by ongoing performance rather than a fixed upfront payment. As part of the agreement, Sahaj Solar has committed to maintaining a minimum Capacity Utilization Factor (CUF) of 15% for the full 25-year period. The company’s O&M responsibilities are comprehensive and include regular cleaning of the rooftop systems, preventive and breakdown maintenance, monthly meter readings, and providing a toll-free support line for the rooftop owners. Sahaj Solar is also required to provide mandatory insurance coverage for all materials, erection activities, and third-party liabilities.
Financially, the energy tariff is fixed for 25 years and includes all taxes, insurance, and grid-related costs. Rooftop owners will pay for the energy supplied as per the Power Purchase Agreement (PPA), while any surplus energy generated will be adjusted using the net-metering mechanism. To ensure compliance and high standards, UPNEDA retains the right to conduct periodic inspections and third-party verifications. The agreement also includes provisions to address delays, where failure to meet commissioning deadlines may lead to encashment of the Performance Bank Guarantee (PBG) or a reduction in project capacity.
This agreement highlights Sahaj Solar’s commitment to delivering reliable and efficient solar energy solutions to government and semi-government institutions in Uttar Pradesh. With a long-term O&M framework, performance-based incentives, and a robust insurance and maintenance structure, the project aims to support the state’s renewable energy goals while promoting sustainable energy practices across public infrastructure.
The partnership with UPNEDA underlines the growing importance of rooftop solar in India and the strategic role of performance-based models in encouraging long-term investment and efficiency in the renewable energy sector.
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