INDIAN SOLAR MARKET T ARIFF & C APEX TRENDS

January 2016

Govt. push coupled with aggressive bidding by developers helps Solar Power achieve grid parity
Capacity Installation and Tariff Trends of Solar Power in India
Capacity (MW)

12.5

Avg. Accepted Tariff (INR/KWh)

2,000

10.1

2010

2012

MP II

Chattisgarh

2013

Haryana

100

AP

100

375

5.08

150

Karnataka II

100

Rajasthan

Tn

AP

Punjab

25

Karnataka I

Odisha II

200

375

5.8
5.7
500

5.4
312

4.8

4.35

500

420

2015

2014

NSM - RJ

500

6.5

6.7

NSM - AP

500

1,500

7.5

Telangana II

6.5

6.7

Telangana

6.5

7.3

NSM Ph II B1

6.5
1,000

6.9

NSM Ph II B1

6.9

300

Odisha I

NSM Ph2 B2

150

6.4

6.7

500

MP

350

NSM Ph1 B1

Gujarat

303

7.3

MP

8.4
7.3

2016

Capex Trends y-o-y (Cr/MW)

2009-10

15.2

2010-11

14.4

2011-12

9.8

2012-13

8.0

2013-14

6.1

6.1

5.0

2014-15

2015-16

2016-17

STRICTLY PRIVATE AND CONFIDENTIAL

17.0

With a present installed capacity of 5.1 GW (Jan 2016), Indias plan for 100 GW by 2022 does not seem impossible
Solar Tariffs have reached Grid Parity with latest bids at Rs 4.34/KWh and Capex dropping to <5.5 Cr/MW
Source DB research report

Capital Expenditure for the solar projects has decreased to ~5 Cr/MW from ~17Cr/MW in 2010
Trends in Benchmark Cost of PV Solar Projects CERC (INR Cr/MW)
2011-12

2012-13

2013-14

2014-15

2015-16

2016-17*

Change in 6
years

PV Modules

9.15

8.33

4.94

3.36

3.34

3.32

3.10

-66%

Land Cost

0.05

0.15

0.16

0.17

0.18

0.25

0.25

400%

Civil & General Works

0.90

0.95

0.90

0.95

0.40

0.50

0.35

-61%

Mounting Structures

0.80

1.05

1.00

1.05

0.50

0.50

0.35

-56%

Power conditioning unit

1.80

1.60

0.98

0.60

0.50

0.45

0.30

-83%

Evacuation cost up to interconnection point

0.85

0.90

1.00

1.05

0.60

0.55

0.40

-53%

Preliminary & Pre-op

expenses including IDC

1.65

1.44

0.80

0.80

0.60

0.49

0.26

-84%

15.20

14.42

9.78

7.97

6.12

6.06

5.01

-71%

Total

2009-10

17.00

STRICTLY PRIVATE AND CONFIDENTIAL

2010-11

Parameter

Project cost is now at ~30% of the project cost in FY 2010

Module costs today are on 1/3rd of the cost in FY 2010 and have contributed a reduction of 6 Cr/MW in Project Cost

Source CERC

T HANK Y OU