India: solar cheaper than grid power

The report also states that commercial consumers in other states such as Andhra Pradesh, Odisha, Gujarat, West Bengal and Rajasthan can profit from reduced energy costs with help of the subsidies.

The New Delhi-based consulting company analyzed tariff data from the State Electricity Regulatory Commissions (SERCs) and compared it with the Levelized Cost of Energy (LCOE) for solar power.

With respect to the calculation method used to make these future projections, Bridge to India assumed that the tariff for grid power will remain constant for a 20 year project lifespan and that the capital cost of a 100kWp rooftop project will be INR 8.5m (US $ 170,000, € 130,000), equity participation 30%, interest rate for debt at 12.5% and the internal rate of return (IRR) expectation on equity 13%.