Depreciating currency Is the Sun still shining?

solar energy industry is a net importer wherein 60 per cent of the project cost is linked to PV modules, so if the rupee depreciates by 10 per cent, it will increase the capex requirement by 5-6 per cent. So, the current trend of rupee depreciation will, in turn, lead to an increase in the solar tariffs. Nikunj Ghodawat, CFO, CleanMax Solar says, “At CleanMax Solar, we factor the currency risk upfront while negotiating the PPA tariffs and it is relatively less complex for solar rooftop project as capex cycle is low. For the utility-scale project, it’s difficult to perfectly hedge this risk.”