Solar power tariffs still remain subdued

Solar energy tariffs are showing no sign of firming up. The downtrend is continuing — as seen in two recent events —proving pundits wrong, and also stoking apprehensions of viability and quality of the projects. Today, Chennai-based jewellers, GRT, emerged the lowest bidder in a Gujarat government tender that sought to allot 500 MW. GRT quoted a tariff of ₹2.65 a kWhr for 90 MW. Though this is slightly higher than the ₹2.44 a kWhr seen in the famous ‘Bhadla Solar Park’ tender in Rajasthan, floated in May, analysts say it works out to be the same after making adjustments for the higher solar irradiation in Rajasthan compared with Gujarat, and the impact of GST. The rising prices of solar modules, almost all of which are imported from China, and the appreciation of the rupee, does not seem to have mattered much.