Stardust Solar Zambia Secures 20-Year Power Purchase Agreement for 30MW Utility-Scale Project

Rhea-AI Summary

Stardust Solar Energy (SUNXF) secured a government-backed 20-year PPA in Zambia for a 30MW utility-scale solar project with Zesco Limited at a fixed US$0.07/kWh. The contract is projected to generate approximately US$60–90 million in gross revenues over the 20-year term. Under a January 12, 2026 loan and JV agreement, Stardust Solar will fund development and construction and will earn a 50% royalty on energy revenues after allowed expenses and repayment of the project loan and interest.

The 30MW plant (≈45,000 panels) sits on 50 hectares, aims for commercial operation later in 2026 after a first 2MW phase, and includes capacity for expansion.

Positive

• 20-year PPA with government-backed Zesco at US$0.07/kWh
• 30MW utility-scale project capacity
• Estimated US$60–90M contracted gross revenues over 20 years
• 50% royalty on energy revenues after loan repayment
• Project comprises ≈45,000 high-efficiency panels
• 50 hectares secured, enabling future expansion

Negative

• Royalties commence only after repayment of the project loan and interest
• Commercial operation dependent on completing first 2MW phase and is expected later in 2026
• Revenue estimate range of US$60–90M indicates material uncertainty in projected cash flows

News Market Reaction

+11.45%

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+11.45% News Effect

On the day this news was published, SUNXF gained 11.45%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Vancouver, British Columbia--(Newsfile Corp. - January 13, 2026) - Stardust Solar Energy Inc. (TSXV: SUN) (OTCQB: SUNXF) (FSE: 6330) ("Stardust Solar" or the "Company") announces the securing of a 20-year, utility-scale Power Purchase Agreement ("PPA") in Zambia to support a 30-megawatt ("MW") solar project with up to US$60-90 million in contracted gross revenues. The government-backed agreement establishes long-duration, recurring royalty streams. It represents the largest royalty-based infrastructure transaction in the Company's history, materially advancing Stardust Solar's diversified global solar royalty strategy.

Through its partnership with its Zambian subsidiary, Stardust Solar Zambia ("SSZ"), the Company has secured a 30MW PPA with Zesco Limited. Zesco Limited is a state-owned utility responsible for the majority of Zambia's national power transmission and distribution. The contract provides the right to sell solar-generated electricity to the Government of Zambia at a fixed rate of US$0.07 per kilowatt-hour ("kWh") for a 20-year term. Based on current assumptions and national energy demands, the project is expected to generate total gross revenues of approximately US$60 million to US$90 million over the contract life.

Under a fully executed loan and joint venture agreement dated January 12, 2026, Stardust Solar will fund project development, construction and provide all utility-scale engineering and technical oversight. In return, the Company will earn a 50% royalty on all energy revenues, after approved allowable operating expenses, for the remaining term of the PPA following repayment of the project loan and interest. This structure creates a high-margin, multi-decade recurring revenue stream.

"This agreement represents a defining milestone for Stardust Solar and the strongest validation to date of our royalty-based growth strategy," said Mark Tadros, Chief Executive Officer of Stardust Solar Energy Inc. "By securing a 20-year, government-backed power purchase agreement with a 50% recurring royalty interest, we are establishing long-duration, high-margin cash flows that directly support our objective of building a scalable global solar royalty platform while delivering clean, reliable energy to countries in need."

The 30MW utility-scale solar facility, comprising approximately 45,000 high-efficiency solar panels, is expected to reach commercial operation later this year upon completion of first 2MW of solar, phase 1 of the build. The project site includes 50 hectares of secured land, exceeding the requirements of the current PPA and providing capacity for further expansion under the existing development framework. Senior leadership will travel to Zambia in February to meet with government officials and utility stakeholders and attend the project's formal groundbreaking ceremony.

"This project reflects the type of long-term, infrastructure-aligned investment Zambia is actively encouraging," said Dr. Ochas Kashinge Pupwe, Principal of Stardust Solar Zambia and Megatricity Energy Limited. "Utility-scale solar developments supported by stable power purchase agreements play a critical role in strengthening national energy security, supporting economic growth, and accelerating the country's transition to reliable, low-carbon power. We welcome Stardust Solar's commitment to delivering scalable, technically renewable energy solutions in partnership with Zambian stakeholders."

This agreement reinforces Stardust Solar's strategy of building a diversified portfolio of long-duration, royalty-based solar assets designed to deliver scalable growth, recurring cash flows, and long-term shareholder value.

About Stardust Solar:

Stardust Solar Energy Inc. is a diversified solar royalty company developing multiple recurring revenue streams across residential, commercial, and utility-scale markets in North America, with international expansion initiatives underway. The Company generates revenues through royalties, licensing arrangements, subscription models, training & education programs, and contributions from its clean-energy franchise operations, all structured to support scalable, recurring value creation. Through strategic growth initiatives and a focus on sustainability-driven innovation, Stardust Solar is advancing renewable-energy adoption while building long-term value for shareholders and stakeholders.

Media and Investor Contacts:

Erica Bearss, MBA, DBA (c) | VP Corporate Communications
investors@stardustsolar.com
www.stardustsolar.com

Stardust Solar Energy Inc.
B101-9000 Bill Fox Way, Burnaby BC V5J 5J3 - Canada
732 S 6th St, STE N, Las Vegas, NV 89101
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Disclaimer:

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/280193

FAQ

What are the key terms of Stardust Solar's 20-year PPA (SUNXF) in Zambia?

The PPA allows sale of solar power to Zesco at a fixed US$0.07/kWh for 20 years for a 30MW plant.

How much revenue will the SUNXF 30MW Zambian project generate?

The project is expected to generate approximately US$60–90 million in contracted gross revenues over the 20-year term.

When will Stardust Solar (SUNXF) start receiving royalties from the Zambia project?

Stardust Solar will earn a 50% royalty on energy revenues after repayment of the project loan and interest, per the January 12, 2026 agreement.

What is the project timeline for the SUNXF 30MW solar facility in Zambia?

The facility is expected to reach commercial operation later in 2026 after completion of the initial 2MW phase.

How large is the site and can SUNXF expand the Zambia solar project?

The project sits on 50 hectares of secured land, which exceeds current PPA requirements and allows room for expansion.

What ownership and delivery role does Stardust Solar (SUNXF) have on the Zambia project?

Under a loan and JV agreement, Stardust Solar will fund development and construction and provide engineering and technical oversight.