Low Tariff For Solar Pv Projects: The Good And The Not So Good

Tariffs for solar power have been falling steadily since 2010 when the Jawaharlal Nehru National Solar Mission ("JNNSM") was launched – from the lowest tariff of ₹10.95 per kWh, discovered for photovoltaic ("PV") projects in batch I of phase I of JNNSM, to ₹7.49 per kWh (being the lowest tariff discovered in reverse auctions based on discounted feed-in tariff) for PV projects in batch II of phase I of JNNSM, to a levelised tariff of ₹5.45 per kWh (₹4.95 per kWh in case benefit of accelerated depreciation is availed) for PV projects selected under reverse auctions based on viability gap funding ("VGF") under batch I of phase II of JNNSM.

Solar power tariffs are now consistently under ₹5 per kWh. In November 2015, under batch II of phase II (State specific bundling scheme) of JNNSM, SunEdison, USA quoted the lowest tariff of ₹4.63 per kWh to win the 500 MW capacity Ghani solar park in Andhra Pradesh. In December, 2015, SB Energy, (formerly known as SBG Cleantech), a