Solar tariffs have hit record lows in India but they are not the lowest in the world. Competitive tariffs in several other countries are lower. A September 2016 auction in the United Arab Emirates has seen 50% lower tariff than the recent record low solar tariff in India. According to India Ratings and Research Pvt. Ltd, global tariffs were driven lower by strong counterparties (buyers of electricity), better utilization and lower borrowing cost. The ratings agency expects the domestic solar tariffs to continue their downward trajectory. For them to close the gap with global tariffs, counterparty risks should abate, adds India Ratings.