Solar PV benchmark capital cost down by 75 lakh/MW

India's solar energy programme may get further boost as the benchmark capital cost norm for Solar PV projects has come down to 5.3 crore per MW for 2016-17 from Rs 6.05 crore in the previous fiscal.
This assumes significance in view of government's ambitious solar power generation capacity addition programme of 100 GW by 2022 against the backdrop of tariff for this clean source remaining below Rs 5 per unit so far in different tariff based bidding of solar power projects.
In a written reply to Lok Sabha, New and Renewable Energy Minister Piyush Goyal said the benchmark capital cost which includes price of land, solar modules and cost towards mounting structures was fixed by the Central Electricity Regulatory Commission (CERC) at Rs 5.3 crore per MW for last fiscal in its order issued on March 23, 2016.

He said the issue was examined by the CERC while determining the benchmark capital cost for solar PV projects for the 2016-17.
The minister quoted the CERC order: "It is understood that land costs vary from state to state and based on the particular location of the projects. However, it must be not that typically land deployed for these projects is barren in nature. Additionally, land cost has been stagnant over the last financial year. Thus, the Commission retains the land cost at Rs 25 lakh per MW."
The commission has also said in the order that "cost of mounting structures, assuming 50 tons per MW, is determined to be Rs 35 lakh per MW. The Commission retains the cost of mounting structures at Rs 35 lakh per MW".

The new benchmark capital cost of Solar PV projects for 2015-16 include the reduced cost of PV Modules at Rs 3.28 crore down from Rs 3.32 crore per MW.

Similarly the cost of civil and general works has been reduced to Rs 35 lakh per Mw from Rs 50 lakh. The cost of mounting structures has also been reduced to Rs 35 lakh from Rs 50 lakh per MW.
The cost of power conditioning unit cost has also been reduced to Rs Rs 35 lakh from Rs 45 lakh. The evacuation cost up to inter-connection point (cables and transformers) has also been reduced to Rs 44 lakh from Rs 55 lakh per MW.

CERC has also reduced the preliminary and per-operative expenses including IDC and contingency, to Rs 27.63 lakh from Rs 48.50 per MW.
According to the statement, the government has approved 32 solar parks with cumulative capacity 19,400 MW.
In a separate reply, Goyal said that ground mounted solar projects of 11.15 GW has been tendered in 2015-16 which would be commissioned during the current and next fiscals.