Indian rooftop solar tariffs are expected to reach an all-time low under Solar Energy Corporation of India’s (SECI’s) latest 1GW rooftop tender, according to forecasts from consultancy firm Bridge to India.
In its latest update, the consultancy said that capital subsidies ranging from 35-90% are likely to attract record low prices. This includes subsidies of INR18,750/kW (US$277) for general category states and INR45,000/kW (US$665) for special category states. However, unlike previous auctions, these subsidies will be significantly reduced if there are delays in construction.
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A recent 500MW rooftop PV tender from SECI has already seen tariffs drop to a record low of INR 3/kWh, as quoted by Amplus Energy Solutions in special category states, as a result of the subsidies available.
Bridge to India not only expects strong interest in the new tender, but also for the prices to fall lower in special category states because of the improved bankability of government off-take and buildings already being identified. More than 70% of the identified capacity is for Ministry of Human Resources and Development buildings, meaning most of the systems are likely to be installed on educational and training institutes.
The following states have the highest capacities allocated:
- Gujarat 267MW
- Uttar Pradesh 62MW
- Maharashtra 50MW
- Delhi 46MW
- Telangana 44MW
Of the 1GW, a total of 700MW comes under OPEX, with developers owning the solar systems and selling power to government departments under 25-year PPAs. The other 300MW comes under the CAPEX model.
Various central government departments and agencies have already committed to install an aggregate rooftop solar capacity of 5,938MW for internal consumption. Government buildings have been earmarked as a key demand driver for rooftop solar market in India for some time.
India surpassed 1GW of rooftop solar in September this year.