Solar tariffs in India have fallen by 73 per cent since 2010
Intense competition in reverse auctions due to a limited supply of projects has pushed companies to bid lower to gain market share at the cost of margins. India’s solar sector recently reached record low tariff levels in the auction conducted at the Rewa Solar Park in the state of Madhya Pradesh, according to a report by Mercom.
India was among the first countries to adopt reverse auctions for solar projects since the inception of its national solar policy.
Highly competitive reverse auctions, falling module and component prices, the introduction of solar parks, lower borrowing costs, and the entry of large power conglomerates with strong balance sheets and access to cheaper capital, according the Mercom, have contributed to the dramatic fall in bids.