Telangana: Solar power tariff dips to Rs 2.44 per unit

Hyderabad: The cost of generating solar power continues to dip, so much so that now the state-owned thermal power producers feel threatened.

On Friday, Union power Minister Piyush Goyal tweeted that solar power tariff at the national level fell to record low of Rs 2.44 per unit. It was Rs 2.62 per unit on May 10.

Compared to thermal power, generation of solar power is cheaper, and it requires a one-time investment.

In bidding held on Thursday for Bhadla Solar Park Phase-III in Rajasthan, the tariff recorded was Rs 2.44 per unit. This is in stark contrast to the TS government purchasing solar power from local plants at around Rs 7 per unit. This is according to agreements reached with them in the past.  Mr Goyal, in a tweet on Friday, said, “The latest solar power auction at Bhadla Solar Park Phase-3 sets a new record with electricity tariff of Rs 2.44 per unit”.  Solar power tariffs have dipped lower than coal fuelled thermal power tariffs, the lowest for which stands at Rs 3.20 per unit for NTPC.  

The Union power minister said in the past three years, the government had achieved a record regarding cost of clean energy, and was moving towards providing 24x7 affordable power to all.

The previous low solar tariff of Rs 3.15 per unit 'was witnessed on April 13 for the Kadapa Solar Park in AP for NTPC auction of 250 MW.

Prior to that, the Rewa Solar Park in Madhya Pradesh saw record lows, with the winning bids of Rs 2.97 per unit in February to build a 750 MW plant, but the tariff works out to Rs 3.3 per unit for 25 years.