Indian solar power persists to draw overseas capital as plummeting tariffs bring plenty opportunities to spend in zero-emissions, clean energy sources.
A study mutually commissioned by US-based believe tank Institute for Energy Economics & Financial Analysis (IEEFA) and JMK Research & Analytics demonstrates that the recent solar tariffs balancing at Rs 2.50-2.87 per unit is 20-30 per cent less expensive than the price of power developed by open thermal power stations. Also, the current rate of solar power is almost half the generation charge of new coal-fired power in the country.
These numbers (as on March 31, 2020) are a testament to the response from solar developers and global capital providers who despite some policy headwinds are willing to invest in the sector despite some of the lowest real solar tariffs in the world.
The tumbling tariffs of solar power, however, have slashed the expectations of returns by investors from 14 per cent to 12 per cent.