India’s SECI sees lowest ever VGF bids in 450MW Maharashtra solar auction

Facebook
Twitter
LinkedIn
Reddit
Email
Flickr: Arain Zwegers

Solar Energy Corporation of India (SECI) has awarded 450MW of solar capacity in the state of Maharashtra, with the lowest collective set of bids involving viability gap funding (VGF) so far.

A total of two foreign firms won significant capacity in a market that has become increasingly dominated by Indian corporates of late. UK-based Lightsource and China-based Canadian Solar won 50MW and 80MW respectively.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The benchmark tariff was set at INR4.43/kWh (US$0.066) combined with VGF support. However, Vijay Printing Press actually bid for a tariff of just INR4.42 with no VGF.

SECI made the following awards:

Developer Capacity VGF/MW (INR million)
Vijay Printing Press 10
Solar Edge Power and Energy 130 1.9
Lightsource 50 1.96
Neel Metal Products 100 1.998
Sukhbir Agro Energy 20 1.999
Canadian Solar 80 1.999
Essel Green Energy 60 1.999

Mudit Jain, consultant at Bridge to India, told PV Tech that while Maharashtra's previous 450MW tender in January this year saw one developer bid at INR4.41/kWh, the other winning bids were far higher with VGF levels going up as high as INR5.4 million.

Jain said the dropping in bid levels for the latest tender was firstly due to a 15% reduction in module prices and secondly due to a change in the the VGF disbursement schedule. Before, the VGF would be provided in six tranches, but now the entire VGF is padid on commissioning with 20% taken as a bank guarantee.

Referring to the low bids overall, Jain said: “It is not surprising. Accounting for all the fundamental differences [in states] this seems about right.”

This tender was part of the National Solar Mission Phase II, Batch IV, Tranche III.

Nick Boyle, Lightsource chief executive, said: “We are delighted to be taking the first steps towards our ambitions for investment in India’s solar PV market. The Indian Government has a huge appetite for solar energy and we believe that Lightsource will contribute significantly towards their targets.”

This article has been revised to say that just two foreign firms won capacity and that Mumbai-based Solar Edge Power and Energy won 130MW capacity.

Read Next

October 2, 2025
The Indian solar industry has 86GW and 182GW of solar cell and module manufacturing capacity, respectively, expected to be commissioned by 2027.
October 2, 2025
The Indian Department of Commerce has launched an antidumping investigation on solar encapsulants originating or exported from South Korea, Vietnam and Thailand.
September 29, 2025
Indian solar manufacturer Waaree has said it does not expect to pay additional duties on its solar cell imports to the US, following the start of an antidumping and countervailing duty (AD/CVD) investigation by the US Customs and Border Patrol (CBP).
September 26, 2025
The Indian Ministry of New and Renewable Energy (MNRE) has added 4.8GW of annual solar cell nameplate capacity to its Approved List of Models and Manufacturers (ALMM) List-II.
September 25, 2025
Inox Solar has started the first phase of commercial operations at a module manufacturing plant in Bavla, India.
September 24, 2025
The development of India’s power transmission network is lagging behind the country’s rapid growth in renewable energy, leading to project delays and cost increases

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 7, 2025
Manila, Philippines
Solar Media Events
October 7, 2025
San Francisco Bay Area, USA
Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland