If the mainstream media have been reporting about new records about the solar tariff, their headlines are correct. The record was set in two days at a common site- Bhadla Solar Park in Rajasthan. SolarDae tries to fit the logic behind such low solar tariff (Read).
Solar tariff breached the Rs.3 reach Rs.2.62 per unit for Bhadla Phase-IV and then Rs. 2.44 per unit Bhadla Phase-III.
While a drop in solar tariff in India is continuing since 2011, the drop has been more profound from 2015- the same year that saw a significant revision in solar projects target to 100 GW.
In 2015, solar tariff had breached Rs.6. The same year in December, the tariff also touched Rs.4.63 per unit. Thereafter it continued to remain under Rs.5. And then came the calendar year 2017. Not only it saw the breach of level 4 but also the level 3 (Read).
Both the projects winning the tariffs under Rs.3 are present in Rajasthan
Both the record winning projects are part of Bhadla solar park in the state of Rajasthan. The state is among the regions of India that is known for receiving the highest amount of solar radiation. Therefore, anticipating more units of energy generation might have encouraged the winners to reduce the solar tariff. At the same time, some section also holds quality compromise to be a reason for the low solar tariff. However, these reasons may not be true entirely and SolarDae will undertake an analysis very soon.
Projects, Project Winners and Solar Tariffs
The total project size of this solar park is 250 Mega Watt (MW) and the winners and their solar tariff are:
- Phelan Energy Group — 50 MW — Rs.2.62 per unit
- Avaada Power Private Limited — 100 MW — Rs.2.62 per unit
- SBG Cleantech — 100 MW — Rs.2.63 per unit
The total project size of this solar park is 700 Mega Watt (MW) and the winners and their solar tariff are:
- ACME Solar Holdings — 200 MW — Rs.2.44 per unit
- SBG Cleantech — 500 MW — Rs.2.45 per unit
SolarDae congratulates the winners and expects them to execute these solar projects efficiently to clear the reservations over the feasibility of these projects.