The price paid for solar power in India at auction is set to
fall below last year’s record lows for the South Asia nation, driven by
plummeting panel prices, falling interest rates and competition among
developers seeking a slice of the country’s renewables market.
Prices could dip lower than the 4.34 rupees (6 cents) a
kilowatt-hour offered in auctions held in the state of Rajasthan a year ago,
according to at least one developer of solar projects in India.
“This year we will see prices fall below 4 rupees a
kilowatt-hour for sure and it will be viable,” said Rahul Munjal, chairman and
managing director of Hero Future Energies Pvt, the clean-energy arm of Hero
Group, one of India’s largest automakers.
