With solar power tariff recently dropping to a historic low of Rs 2.44 per unit, the stage is set for unprecedented capacity additions in pursuit of the 2022 target of 100 GW. As the tariffs continue their downward slide, the demand for solar power will further go up. In case the prices do not go down as expected, matching timely execution with optimum quality will be a challenge for developers. With solar project auctions attracting so many bidders, the sector is becoming increasingly competitive, leading to lower tariffs.
Our client Mr Hartek Singh, CMD of the Hartek Group which specialises in connecting solar power to the grid, feels that solar tariffs have come down largely due to an appreciable drop in the cost of equipment as well as the cost of finance. He is of the view that it is the cost of finance which will hold the key, considering the huge capital available in the market for these projects. If developers can work out sustainable business models, it will be a win-win situation for all.