(ET)
Solar tariffs rose sharply from their lowest level in the latest solar auction of 860 MW conducted by Karnataka’s Renewable Energy Development Ltd (KREDL). The lowest price was Rs 2.94 per unit, way above the winning tariffs of Rs 2.47 and Rs 2.44 per unit at the last two auctions in Rajasthan in December and May last year respectively.
Though Karnataka gets lower solar radiation than Rajasthan and the winning tariff was expected to be consequently higher, the 50 paise per unit rise is striking. It confirms the view of many developers and lenders that bidding in the last few solar auctions had been too aggressive, and some correction was likely, more so because the cost of solar panels and modules has been rising in China. Around 90% of solar equipment used in India is imported, mostly from China, since it is substantially cheaper than the locally manufactured variety.
