Solar tariffs in India hit a record low of INR2/kWh (US$0.0270/kWh) following an auction this week for 1,070MW of PV projects that are set to be developed in the state of Rajasthan.
Despite an uptick in activity in June, India added just 351MW of solar generation capacity in Q2 2020, down 64% on the previous quarter, as the industry was hit by COVID-related constraints.
Just under 1GW of solar was installed in India across the utility-scale and rooftop sectors in Q1 2020, as the COVID-19 pandemic posed a number of significant challenges to the industry.
Analyst tells PV Tech the low tariff ceiling (INR 2.65) set for tender in Indian state is thought to be a major issue amid heightening uncertainty from coronavirus.
With developers facing months of delivery delays for Chinese solar parts, India has said it will consider extending deadlines for PV projects scheduled to be switched on this summer, relieving developers from costly fines.
Exemption on customs duty for cells and modules in India widely expected to be lifted later in the year but there are still legal barriers to overcome, says Bridge to India.
Union Budget revealed in recent days earmarks US$3 billion for the power and renewables sector and outlines plan to give tax breaks to foreign sovereign wealth funds and domestic IPPs.
