Hyderabad: Solar power tariff hit record new low on Thursday when it fetched a mere Rs 3.15 per unit at an auction at the National Thermal Power Corporation’s 250 MW project in Kadapa of AP.
The previous low was Rs 3.3 per unit was recorded when the 750 MW project at Rewa in Madhya Pradesh was auctioned by Rewa Ultra Mega power Company in February.
This is stark contrast to the average tariff of Rs 12.16 per unit when the first solar power project started in the country in 2010.
In Telangana, the first solar power project started production in 2011, with the cost per unit coming to Rs 15 per unit and a year later, reaching Rs 17.91 per unit.
The downward spiral began in 2013 as the input costs began to fall. The initial investments for 1 MW of solar power was about Rs 17.50 crore; it has now come down to Rs 4 crore, mainly due to fall in the cost of solar panels.
The benchmark for cost of power as decided by the Centre is Rs 1 per unit with an investment of Rs 1 crore. The calculation is that if the investment for 1 MW of solar power is Rs 5 crore, the cost per unit will be Rs 5.
