Solar tariff could rise up to 40-45p per unit over customs duty change
The tariffs for solar power could increase between 25-45 paise per unit (kWh) due to Basic Customs Duty (BCD) on imported solar cells and modules, according to a rating agency.
The Ministry of New and Renewable Energy’s (MNRE) announcement of the BCD implementation on imported solar cells (25 per cent) and modules (40 per cent) starting April 1 could increase the solar power tariff, it said.
CARE Rating said on Monday that solar power prices could rise between 25-30 paise per unit if only cells are imported while the cost will rise further to 40-45 paise if modules are imported.
The cheapest solar tariffs discovered in the auctions in 2020 was Rs 1.99 per unit which was possible due to imports and cheap overseas funds, analysts had said.
