INR 1.99/unit: India Hits New Solar Tariff Record Low

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India’s latest auction for 500 MW of solar projects by Gujarat Urja Vikas Nigam Limited’s (GUVNL) (Phase XI) has set a new record. The lowest (L1) tariff reached ₹1.99 (~$0.0270)/kWh quoted by NTPC, Torrent Power, Saudi Arabia-based Al Jomaih Energy & Water Co and Aditya Birla Renewables for 200MW, 100MW, 80 MW and 120MW solar projects respectively.

India has set a target to raise the capacity of installed renewable energy generation plants from the current level of 89 GW to 175 GW by the end of 2022.

This tariff is an INR 0.1/kWh lower than the recent record low tariff of ₹2/kWh again set by NTPC and Al Jomaih at SECI’s November tender for 1,070 MW GW of grid-connected solar projects (Tranche III) in Rajasthan. 

Currently, about 35 GW is under various stages of implementation and 30 GW under various stages of bidding in India.

With falling interest rates and the decline of module prices, bids are expected to continue their downward slide. Module prices have fallen around 15% as compared to last year. Currently, module prices are at $0.17/Wp and the levelized cost of energy (LCOE) for solar projects continues to fall year-on-year.

Globally, improved technologies and bigger wafer sizes are driving module efficiencies up and bringing down costs.

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