Even the lowest winning solar bids have increased by 22% with respect to India’s record in the past. December 2020 saw solar tariffs at Rs1.99 per kilowatt hour (kWh). In case of duty-free imported modules, the tariff is estimated to be Rs2.43/kWh (US$0.0323/kWh).
As per reports, the introduction of a new duty on imported solar modules along with surging commodity prices will be pushing up solar tariffs by more than one-fifth over the next year.
The policy hurdles need to be addressed by the state and central government for more clarity, like the increase/decrease of duty on a year-on-year basis.