Solar becomes ‘cheapest new power source’ in India as auction winners revealed

Facebook
Twitter
LinkedIn
Reddit
Email
Solar power is the cheapest new source of power in India. Credit: Welspun

After 33 hours of bidding, Mahindra Renewables, Acme Solar and Solenergi Power have emerged triumphant in the 750MW solar auction in Madhya Pradesh, with the lowest price smashing records at just INR2.97/kWh (US$0.044) in year one before an annual escalation kicks in.

The winning developer bids for the three projects of 250MW available at the Rewa solar park were as follows:

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

Not ready to commit yet?
  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Company Year one tariff (INR/kWh)
Mahindra Renewables (unit 1) 2.979
Acme Solar (unit 2) 2.97
Solenergi Power (unit 3) 2.974

Jasmeet Khurana, associate director, consulting at Bridge to India, told PV Tech: “The tariff has an escalation of INR0.05/kWh (US$0.0007) for 15 years, resulting in a levelized tariff of INR3.29/kWh for 25 years.”

He added: “We believe that reduction in solar tariffs below INR3/kWh level will act as an inflection point for the solar sector and have long-term consequences on India’s future power generation mix.”

Finding that Indian tariffs over the last two years for wind, gas and even new thermal plants have been well above today’s solar prices, Khurana said: “This clearly makes solar power a key contender for future power capacity addition in the country. Solar power is the cheapest new source of power in India.”

Mudit Jain, consultant at Bridge to India also offered his thoughts:

Earlier today, representatives from YES Bank and IEEFA shared their views on why these “transformational” low tariffs of under three rupees came about and the financial environment that allowed the winning developers to go so low.

The tender came from Rewa Ultra Mega Solar (RUMS), a joint venture between Solar Energy Corporation of India (SECI) and the Government of Madhya Pradesh.

Jasmeet Khurana explains how the new price records will affect the Indian power sector in a blog for PV Tech.

Read Next

August 28, 2025
Indian solar manufacturing firm INA Solar has broken ground on its fourth 4.5GW cell production plant in Narmadapuram, Madhya Pradesh.
August 26, 2025
Jakson Engineers is investing over INR80 billion (US$912.5 million) to set up a 6GW integrated solar module, cell, and wafer plant.
August 26, 2025
India installed 14.3GW of new utility-scale solar capacity in the first half (H1) of 2025, marking a 49% increase year-on-year.
Premium
August 22, 2025
Indian PV manufacturers are facing a double hit from US trade tariffs and anti-dumping measures on products sold in America. Shreeyashi Ojha reports on how these are impacting their business models.
August 21, 2025
National Thermal Power Corporation (NTPC), through its renewable energy arm NTPC Green Energy, has commissioned 212.5MW of solar capacity at its 1.25GW Khavda-I project. 
August 19, 2025
Indian renewable energy company SAEL Industries has signed two 880MW power purchase agreements (PPAs) with the Indian states of Gujarat and Punjab.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines