Solar-powered projects face the heat as key raw material prices rise sharply

CHENNAI : Many solar power projects that signed low-tariff agreements with distributors over the past year are likely to face the squeeze over the next few quarters due to a reversal in solar module price trends. While solar module prices, which generally account for over 50 per cent of project cost, had been trending lower over the five years leading up to March 2020, this trajectory has changed since the beginning of this year. If sustained, this price rise is also likely to result in an increase in solar power tariffs that had fallen to record lows last year.