The Central Electricity Regulatory Commission (CERC) has brought closure to a long-running dispute involving solar power developers and government agencies over compensation related to “Change in Law” events. The case was filed by ACME Jodhpur Solar Power Private Limited and ACME Rewa Solar Energy Private Limited, and primarily focused on the recovery of reconciled amounts associated with payments of Goods and Services Tax (GST) and Safeguard Duty (SGD).

The dispute began when the developers alleged that Rajasthan Urja Vikas Nigam Limited (RUVITL) had deducted certain amounts from claims that had already been reconciled and approved. These claims were linked to compensation for additional costs incurred due to tax and duty changes introduced after the companies had signed their Power Purchase Agreements in 2017. Under renewable energy regulations, such policy or taxation changes are categorized as “Change in Law” events, which allow developers to seek financial relief for cost increases that were not anticipated at the time of project bidding.

Another issue that complicated the matter involved discrepancies related to the solar modules installed at the project sites. The respondents pointed out differences between the physical modules present at the installations and the invoices that had been submitted by the ACME entities as part of their compensation claims. This raised concerns about the accuracy of the documentation used to support the reimbursement requests.

To address these technical differences, the Commission directed the involved parties, including the Solar Energy Corporation of India (SECI) and RUVITL, to work toward an amicable resolution. Following this directive, a joint committee was established to conduct a detailed verification process. The committee carried out physical inspections and site verification of the solar installations in October 2025. During the inspection, the developers presented detailed reports and supporting documentation to clarify the status and specifications of the installed modules.

The collaborative verification process ultimately resulted in a successful reconciliation. Based on the joint committee’s findings and the original invoices issued during 2019–20, the parties reached a mutually agreed settlement. As part of this reconciliation, approximately ₹9.93 crore was released to the petitioners toward Safeguard Duty compensation. In addition, around ₹1.95 crore was paid as compensation related to GST. These payments covered costs incurred during the period before the projects achieved their Commercial Operation Date (pre-COD).

On March 12, 2026, CERC issued its final order on the matter. During the final hearing, legal representatives for the ACME companies confirmed that the payments related to the pre-COD period had been received, and therefore no dispute remained regarding those claims. In light of this confirmation, the Commission disposed of the petition, noting that the primary issues had effectively been resolved through reconciliation.

However, the order also included an important legal clarification. While the pre-COD claims have now been settled, the developers have reserved their right to pursue compensation for costs incurred after the Commercial Operation Date. These post-COD claims are currently part of a broader set of appeals pending before the Supreme Court of India. The Commission stated that the developers may raise fresh grievances related to post-COD compensation once the Supreme Court issues its final decision in that ongoing litigation.