Solar tariff to go up by 20 to 25 paise/unit in forthcoming bids: Icra

Solar energy tariff is likely to go up by 20-25 paise per unit in upcoming bids for projects as compared with rates seen over the past six months, according to an ICRA NSE -2.55 % report on renewable energy. This assumes significance in view of India’s ambitious target to achieve 450 GW of renewable energy by 2030.

“The increase in (solar) module prices and the recent hike in GST (good and services tax) rate for solar power equipment are likely to increase the tariffs in the forthcoming solar bids by 20-25 paise per unit from the levels seen over the past six months,” the report stated.

Nonetheless, it said that the tariffs are likely to remain competitive at less than Rs 3 per unit.