Indian solar asset sellers getting ‘desperate’

Facebook
Twitter
LinkedIn
Reddit
Email
'Sellers think they are sitting on a pot of gold and buyers think that they are not'. Credit: Fortum

Many developers with solar assets in India are looking to sell their portfolios. Some of them have been in the market for a long time and are under pressure from their investors to find an exit, according to the head of consultancy firm Bridge to India.

Vinay Rustagi, managing director of Bridge to India, has told PV Tech: “If you look at all the developers in India, most of them are backed by private equity money or corporate capital, which needs to find an exit in the next 2-3 years depending upon the horizon of the individual investors.”

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Meanwhile in its latest market update, Bridge to India has warned that interested sellers “better move fast now”.

Rustagi’s comments come after a spate of media reports suggesting a large number of companies are looking to divest their Indian solar assets, including Ostro Energy, Essel Infra, Orange Power, Shapoorji Pallonji, SkyPower, Fortum and FRV. Moreover, Equis and First Solar have both managed to sell Indian portfolios this year.

Rustagi said that by looking at the profile of solar developers in India, most of them are primarily ‘bidders and developers’, in the sense that their aim is to find an opportunity, build a profitable project and then exit by selling to a long-term investor for the remaining 20 or 25 years, as happens across the globe in renewables.

However, Rustagi noted that many developers are now stuck with 50-300MW portfolios, which they are not able to grow for two reasons. Firstly there has been a lengthy and on-going hiatus in solar tender issuances in India, and secondly, the sector has become extremely competitive with highly aggressive bidding. Rustagi added: “It seems that bidders are having to make more and more speculative assumptions on equipment prices, financing cost, tax rates etc. to have any realistic chances of winning bids in the range of INR2.45-2.60.” (US$0.038-0.040)

Consequently, many small to mid-scale developers, who can’t do an IPO or find joint venture partners, have been looking for a way out for some time.

Rustagi said: “The sellers are now getting desperate and right now, basically the reason we haven't seen too many deals in the last one or two years is because there’s been a huge expectation price gap, between the buyer and the sellers. Sellers think they are sitting on a pot of gold and buyers think that they are not – they can build their own assets rather than buy old assets at a premium.”

The situation has been “bubbling away for some time” said Rustagi, adding that the sector could see several more mergers and acquisitions over the next one or two years as the situation comes to a head.

Read Next

October 14, 2025
India has installed 4.9GW of residential rooftop solar capacity in the first half of 2025, according to a report by IEEFA and JMK Research.
October 10, 2025
NTPC Renewable Energy Limited has signed an MoU with the Government of Gujarat to develop 15GW renewable energy projects in Gujarat.
October 9, 2025
Singapore-based Sembcorp Industries has agreed to acquire ReNew’s 300MW solar power unit in India for around US$246 million.
October 9, 2025
Avaada has inked an MoU with the Gujarat government to develop solar, wind, and BESS worth INR360 billion (US$4.05 billion). 
October 8, 2025
Saatvik Green Energy has secured new solar PV module orders worth more than INR7 billion (US$84 million), to be delivered in this financial year.
October 7, 2025
Juniper Green Energy through its subsidiary Juniper Green Sigma Eight has signed a 70MW power purchase agreement with renewable energy giant Tata Power. 

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK