New Delhi, May 18: First time ever in India, the price of solar energy is lower than the price of thermal or nuclear energy.
Last week, Solar energy historical bids of Rs 2.62/unit and Rs 2.44/unit were held in Bhadla Solar Park, Rajasthan, on 9 and 11 May.
These prices have dropped 40% from January last year when it was Rs 4.34/unit.
The government routinely organises auctions for both Indian and international companies where tenders to generate solar energy from solar parks are given.
ACME Solars with the lowest bid of the lot of Rs 2.44 aims to generate 7,500 MW of solar energy by the year 2019.
We are delighted. We expect an exponential growth in coming days for renewable energy industry.
The imapct of market on the future of solar energy:-
Cheap Loans Needed to Sustain Low Prices
“Technology is now cheaper and 70% of tariff is the finance. As risk reduces and familiarity increases with solar energy technology, finance is likely to get cheaper. The pace might change, but the trend of cheaper finance is sustainable,” Chawla said.
As Price Falls, Indian Manufacturers Lose to China
India already imports over 85 percent of its solar energy equipment from China and with lower prices the it is difficult for Indian solar panels to be competitive, especially when prices are falling the way they are.
Govt Grants Exemptions, Subsidies & Incentives
The government has a target of meeting 175 GW of energy by 2022 and has actively initiated policy changes, subsidies and incentives to boost investor confidence.
The Government of India is offering 25-year fixed price tariff contracts that guarantee solar project revenues.