Solar power tariffs will be lower than Rs. 2.30/unit by 2030: TERI report

Solar power tariffs in India will be lower than Rs. 2.30 a unit by 2030, according to a report by The Energy and Resources Institute (TERI).

In a paper titled ‘Exploring Electricity Supply-Mix Scenarios to 2030’, TERI said the levelised cost of electricity (LCOE) from ground-mounted solar projects will fall from Rs. 2.87 a unit in 2018 to Rs. 2.30 a unit in 2030.

Tariffs from onshore wind projects will fall from Rs. 2.85 a unit in 2018 to Rs. 2.58 a unit in 2030.

“Renewable energy was found to be the cheapest source of incremental generation, even considering sensitivities around capital and financing costs. A high renewable energy scenario is found to have a deflationary impact on system tariff later in the projection period,” the report said.