Parliamentary panel concerned over sharp fall in solar tariff

NEW DELHI: Expressing concern over nearly 26% drop in solar tariff in three months, a parliamentary standing committee noted that some of these projects could become unviable because developers may find it difficult to raise funds and contain high project costs.

Standing Committee on Energy in its report tabled in Rajya Sabha on the National Solar Mission also recommended the government to reconsider roof-top solar target of 40 GW else achievement target achievement of the National Solar Mission will be derailed.The committee noted that per unit of solar price in India has dropped from Rs 10.95 in December, 2010 to Rs 2.44 in May, 2017.

"I a rush to build market share in this sector, some players have become very aggressive in competitive auction and are bidding very low tarrif. Such a low solar tariff would also affect the viability of solar projects which have  been awarded earlier at a higher rate," the committee recommended.

Suggesting reconsideration of Rooftop solar target, the commitee noted that out of the 100 GW solar power, 40 GW is to be achieved from grid connected solar roof-tops.

"The committee find that rooftop systems are not remunerative for consumers due to high maintenance cost," it said. It further said that the rooftop solar target of 40 GW by 2022 is unrealistic and it is highly unlikely that this target will be achieved.

"The committee is of the view that the Ministry of New and Renewable Energy should give this scheme a serious rebook, otherwise, it will derail the target achievement of the National Solar Mission," it added.