Mumbai: Solar power tariffs in India, which have fallen below Rs.5 per unit since November, are expected to fall further as the industry doubles volumes every year and the cost of producing power continues to decline. So we expect that solar tariffs will continue to go down by 5-8% year-on-year,” said Vikram Kailas, managing director at renewable energy producer Mytrah Energy Ltd. Bridge to India sees tariffs falling by at least 5% annually and calls a sub-Rs.4 per unit tariff a realistic number. Indeed, solar tariffs hit a record-low in November last year when SunEdison bid Rs.4.63 per unit in a reverse online auction and fell to Rs.4.34 in Finland-based Fortum’s bid at a January e-auction. It currently has about 8GW of solar capacity and about 27GW of wind power capacity.

Source: Mint July 25, 2016 19:59 UTC