Solar power tariff drops to historic low at Rs 2.44/unit

New delhi: Solar power tariff dropped further to hit a new low of Rs 2.44 per unit in the auction conducted for Bhadla solar park.

“In another auction for Bhadla Solar Park 3, solar power tariff touched record low of Rs 2.44/unit,” a senior official said.

The official added that ACME Solar Holdings emerged as the lowest bidder by quoting Rs 2.44 per unit tariff for 200 MW followed by SBG Cleantech One at Rs 2.45 per unit for 500 MW capacity.

Following this, Power Minister Piyush Goyal tweeted, “Green future: Latest solar power auction at Bhadla Solar Park 3 sets new record with electricity tariff of Rs 2.44/unit”.

Earlier this week, solar tariff dipped to Rs 2.62 per unit in the auction held for Bhadla Solar Park phase 4.

Solar power tariff has been falling steadily for quite some time now.

Last month, levelised solar power tariff had dropped to all-time low of Rs 3.15 per unit at an auction of a 250 MW project at Kadapa in Andhra Pradesh.

In February, lower capital expenditure and cheaper credit had pulled down solar tariff to a new low of Rs 2.97 per unit for the first year in an auction conducted for 750 MW capacity in Rewa Solar Park in Madhya Pradesh.

However, the levelised tariff for Rewa project has worked out to be at Rs 3.30 per unit.

In January last year, solar power tariff had dropped to a new low, with Finland-based energy firm Fortum Finnsurya Energy quoting Rs 4.34 a unit to bag the mandate to set up a 70-MW solar plant under NTPC’s Bhadla Solar Park tender.

In November 2015, the tariff had touched Rs 4.63 per unit following aggressive bidding by US-based SunEdison, the world’s biggest developer of renewable energy power plants.