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New UserPrice of solar power may fall further in FY18
10 Mar 2017
Solar power generation costs are set to dip further during third and fourth quarter
of 201718, helped by expected softening of interest rates and a drop in solar panel prices
due to a supply glut in the international market, analysts say.
Solar power costs had hit a low of Rs 3.30 per unit last month, which is equal to average
generation tariffs of NTPC, which produces bulk of its power from coal.
NTPC’s lowest cost of generation from one of its old plant is around Rs 1.80 per unit, but on
an average solar power prices are expected to become significantly lower than thermal
power as solar generation prices fall further.
“Interest rates are expected to soften this year thus bringing down cost of generation of solar
power plants. This would thus bring down generation tariffs further from the new low
achieved in February,” said Sabyasachi Majumdar, senior vice president at ICRA Ratings.
In February, solar tariffs in the country touched a low of Rs 2.97 per unit for the first year of
generation and an average tariff of Rs 3.30 per unit at a bidding for solar plants at Rewa in
Madhya Pradesh
Source: Economic Times