Solar tariff slumps to all-time low at Rs 4 a unit

Tariff can be lowered further depending on the bids in the auction

The solar power tariff slipped to an all-time low of Rs 4 per unit — the maximum rate — fixed under the tender floated for 750-mw solar power projects at Bhadla solar park in Rajasthan.

"Solar Energy Corporation of India (SECI) has finalised a tender issue for the 750-mw solar PV projects in Bhadla solar park, Rajasthan, at a record low tariff for power sale of Rs 4 per unit with VGF (viability gap funding) support," a source said.

SECI Managing Director Ashvini Kumar said: "The government has fixed solar power tariff at Rs 4 per unit as the benchmark rate for all tenders in the states where solar tariff has been discovered at up to Rs 4.50 per unit in various auctions."

About the specific tender of the 750-mw solar power projects, Kumar said, "This auction will be completed in one and a half months. Now, Rs 4 per unit is the benchmark. The tariff can be lower than this rate also as it depends on the bidders to quote the price."

With this tender issue, SECI has completed an auction of more than 5 gigawatts — the total being 5,410 megawatts (MW) — under the VGF scheme in a span of a less than 15 months. Of this, power purchase agreements (PPAs) have been signed for 2,520 MW and PSAs (power supply agreements) for 2,725 MW.

Earlier in January, the solar power tariff had hit a record 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.

Previously, in November last year, the solar power tariff had dipped to a low of Rs 4.63 per unit following aggressive bidding by the US-based SunEdison, the world's biggest developer of renewable energy power plants.