Indian state of Gujarat may cut solar feed-in tariff


In India's Gujarat state, solar plant owners may be getting too much of a good thing.

The local utility company in the state, a solar power hub that is home to about 50% of the country’s solar capacity, is looking to reduce tariff rates for projects, citing the excessive profits earned by solar plant owners.

State-run utility Gujarat Urja Vikas Nigam Ltd. (GUVNL), which buys solar power, has submitted a petition to government regulators to cut the rates due to the "unjustified and windfall gains" by plant owners, according to Bloomberg News.

GUVNL proposes lowering the feed-in tariff from the current average price of INR 12.54 ($0.21) a kilowatt hour over 25 years to about INR 9 ($0.15), which it described as "reasonable and prudent tariff."

Popular content

Since 2010, GUVNL has signed 88 contracts for a total of 971.5 MW of solar capacity with developers, among them Adani Enterprises, Moser Baer India, Tata Power and Welspun Energy, Bloomsberg reported.

Regulators are scheduled to hold the first hearing on the petition on July 23.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact:


Related content

Elsewhere on pv magazine...

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.