Solar tariffs of less than $0.034 not financially viable in India


Tariffs below INR2.55/kWh ($0.034) are not financially viable in the Indian solar sector under current market conditions, according to research by the U.S.-based Institute for Energy Economics and Financial Analysis (Ieefa) and JMK Research & Analytics.

The researchers concluded India’s solar tariffs have stabilized at INR2.50-2.87/kWh – some 20-30% below the cost of existing thermal power facilities in India, and up to half the price of new coal-fired capacity.

“While this rate is very competitive compared to thermal plant tariffs, and lucrative for power distribution companies entering long-term power purchase agreements, this is a floor for developers if they want to make money,” said study co-author Vibhuti Garg, an Ieefa energy economist.

Popular content

For the full story, please visit our pv magazine India site.

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: