Developers Expect Solar Power Tariff to Fall at Rs 1.5 Per Unit

Solar power tariff came down to all-time low of Rs 2.44 per unit in the auction conducted for Bhadla solar park last month, and now the developers expect it to fall as low as Rs 1.5 per unit.

Solar power developers are bullish on clean energy and hopeful about tariff coming down to as low as Rs 1.5 per unit on falling equipment cost and cheaper credit with assured purchase pact.

Solar power tariff came down to all-time low of Rs 2.44 per unit in the auction conducted for Bhadla solar park last month mainly due to lower equipment and borrowing costs. The new rate of solar power is even below the average rate of coal-based power produced by staterun NTPC at Rs 3.30 per unit. “Developers are bullish on renewables particularly solar energy.

They think even Rs 2.44 per unit tariff is high in view of lowering of cost of equipment and avenues available for cheaper funding,” said a source in the ministry of new and renewable energy.

PTI