Solar Power Tariff Drops to a Historic Low at Rs 2.44/Unit
History was created as the record low tariffs achieved in the auction concluded in May 2017 for Bhadla Phase-IV Solar Park, Rajasthan has been broken, with an even lower tariff of Rs 2.44 per unit discovered in the auction carried out by the Solar Energy Corporation of India Limited (SECI) for 500 MW capacity in Bhadla Phase-III Solar Park, Rajasthan. The park is being set up by M/s Saurya Urja Company of Rajasthan Limited, a joint venture between the Government of Rajasthan and M/s IL&FS Energy Development Company Limited. This tariff is fixed for 25 years with no escalation and the bidders have sought no VGF from the government. The winners are M/s ACME Solar Holdings Pvt. Ltd. (200 MW) at a tariff of Rs 2.44 per unit and M/s SBG Cleantech One Ltd. (300 MW), quoting a tariff of Rs 2.45 per unit.
It is understood that this fall in solar tariffs is the result of a combination of various factors, most important being the decision of the Government of India to cover solar power by SECI under the ambit of the Tripartite Agreement for payment security against defaults by state distribution companies. Other factors contributing are about 7–8 per cent higher yield in Rajasthan due to better solar radiation conditions, drop in module prices in international market, and strengthening of Indian rupee against US dollar.