Solar Energy – JNNSM, Solar Cities, Solar Pumps, etc.

Low solar tariffs susceptible to cost risks

  1. Context: Solar tariff hit a historic low of Rs 4.34/unit in January after a bid for a 70 MW project in Rajasthan
  2. Expert’s Opinion: Low tariff bids could prove risky for developers as any slight changes in costs could impact operating margins
  3. Reason: Low tariff bids have very tight assumptions of costs, which can escalate if any of the assumptions go wrong
  4. Challenge: Rooftop solar has been viable only for industrial consumers whose power tariffs are on the higher side, while residential users have low tariffs
  5. Discoms don’t favour rooftop solar power, as industrial consumers are buying less from them, due to difference in pricing

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