After inviting a tender of 15 MW Bihar Renewable Energy Development Agency (BREDA) has invited another rooftop solar tender of 10 MW. The nodal agency has been increasing its focus towards the deployment of renewable energy increasingly across the state. Bihar can very well harness solar energy and biomass energy due to available resources. Lately, it has invited multiple tenders exclusively for harnessing rooftop solar. Mercom India has covered the detail of the latest tender. The projects will be set up under the RESCO model where the end user does not pay anything upfront.
Rooftop solar tariffs are much less than what consumers in Bihar pay to their power distributors
Increasing activities on solar energy tender in Bihar is a welcoming move. The growth of the renewable energy market in the state is lacklustre. Although the tendering activities serve only the government departments consumers will become aware of not only the use of solar energy but also the approximate tariff. This will help them make an informed decision before adopting a solar power plant.
The cost of rooftop solar energy generation is significantly lower than the cost of electricity from the grid. Bihar Electricity Regulatory Commission (BERC) in its latest order has set the solar energy tariff to INR 4.17 per unit. The order is common for ground-mounted utility-scale solar power plants as well as for the rooftop solar plants. The commission has also not hiked the electricity tariff for FY 19. Despite that, the tariff is still higher than the cost of solar energy.
Our analysis shows that even a domestic consumer consuming roughly 100 units a month ends up paying around INR 6.64 per unit. Electricity tariff of domestic consumers is lesser than industrial and commercial consumers. The effective tariff rates of Low and High tension consumers are more than INR 7 and INR 9 per unit respectively. The maximum cost of rooftop solar energy, on the other hand, won’t cost more than INR 4.17.
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