Clean Max Enviro, India’s largest pure-play C&I renewable energy company, highlighted in its latest investor call that demand remains resilient despite rising tariffs following the implementation of the Approved List of Models and Manufacturers (ALCM) for cells. Managing Director Kuldeep Jain noted that while tariffs have increased, demand has not been impacted.

The company’s latest move support Indian commercial and industrial (C&I) segment growth trend. C&I is poised for a significant surge with renewable energy (RE) capacity, projected to reach 57 gigawatts (GW) by fiscal 2028 an increase from around 40 GW expected by the end of fiscal 2026, according to CRISIL Research.

Data & AI is the Biggest Growth Engine for the firm with these customers now representing 42% of contracted capacity (~2.4 GW), having grown nearly 10x in under two years. Clients include Iron Mountain, Princeton Digital Group, and STT Data Centers. Two-thirds of this business operates via Environmental Attribute Purchase Agreements (EAPAs) rather than direct electricity supply.

Post-ALCM Pricing Shift Drives Higher Solar Tariffs

Explaining the pricing transition, Jain said in the call that for brownfield solar expansions, the company had been offering pre-ALCM pricing with commissioning timelines extending up to May 31, and in some cases even till November or December, as brownfield projects can be commissioned quickly. However, from January 1 onwards, the company began offering revised and higher tariffs to customers due to an increase in module prices.

Despite this, Jain emphasised that customer traction has remained strong. He attributed this to the compelling savings offered by renewable energy solutions. Additionally, the growing adoption of wind-solar hybrid solutions has further supported demand.

These hybrid offerings are now standard across major states such as Maharashtra, Karnataka, Tamil Nadu, and Gujarat, where demand continues to remain robust. For standalone solar projects, Jain noted that returns vary slightly by state, typically ranging between 7% and 10%.

Direct-to-Customer Model Boosts Tariffs & Capex Efficiency

CleanMax is also leveraging its strong capex-to-EBITDA ratio, which Jain said is superior to that of its peers. He explained that the company’s direct-to-customer business model—similar to a retail model—enables it to command higher tariffs compared to developers participating in reverse auctions with government discoms or SECI, where price is the sole determinant.

“Our tariffs tend to be higher due to our direct customer model. Tariffs for assets commissioned in the first nine months of the fiscal were about ₹3.6 per unit, while tariffs for 2.7 GW under execution as of March 1 stand at around ₹3.8 per unit,” Jain said. He added that while higher tariffs are a key factor, efficient project execution and operational expertise built over the past 15 years also contribute significantly to the company’s performance.

Demand Drivers: Why C&I Demand Remains Strong

While higher module costs have led to increased tariffs, demand continues to be supported by strong cost savings and the growing adoption of hybrid solutions. Jain also pointed out that unlike the SECI model—where a Letter of Award (LoA) may or may not convert into a power purchase agreement (PPA)—CleanMax signs contracts directly with end customers, providing greater certainty.

The company’s average group captive project size stands at 13 MW, with a steadily expanding pipeline. Jain noted that this pipeline is not lumpy and continues to grow consistently, with contracted capacity increasing quarter-on-quarter, as reflected in disclosures from April, July, and October periods.

Uptill now, CleanMax has commissioned 1.3 GW of capacity, comprising 85% solar and 15% wind projects, across Gujarat, Karnataka, Maharashtra, Tamil Nadu, Haryana, Rajasthan, and Chhattisgarh during the first 11 months of FY26. 

Land Preparedness

On project readiness, Jain stated that CleanMax has already secured slightly over 80% of the land required for upcoming capacity as of mid-to-end February. He explained that achieving 100% land acquisition well in advance is uncommon in the industry, given the fragmented nature of land ownership in India. The average landholding of around 4 acres per farmer typically supports only about 1.5 MWp of solar capacity, necessitating multiple land transactions.

He added that the remaining land acquisition is expected to be completed over the next one to two quarters, with full land availability anticipated by September 2026 for projects scheduled through March 2027.

Capital Efficiency and Market Position

On capital efficiency, Jain highlighted that CleanMax’s tariffs are approximately 30% higher than the industry average, contributing to its superior financial metrics. The company currently holds around a 12% market share in India, indicating a competitive yet growing market.

He further noted that unit economics have remained stable or improved over time, despite fluctuations in tariffs. While capital costs for solar and wind projects have declined, key return metrics such as ROI, ROE, equity IRR, and payback periods have either remained steady or improved marginally.

As an example, Jain pointed out that equity payback for assets built in FY22, FY23, and FY24 stood at around 2.5 years, compared to a historical average of 3.4 years. He concluded that improving unit economics, combined with scale and sustained growth in the C&I segment, have strengthened the company’s overall financial performance.