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Capping of Solar Tariffs to Rs. 2.5 per unit may freeze the solar market

<p><span style="font-size:11.0pt">Solar Tariff in last year auctions have fallen to a low of Rs. 2.44 per unit. Enthuses by low tariff SECI has introduced reverse bidding with ceiling of Rs. 2.5 Rs per unit. These tariff capping has induced uncertainty and will make difficult for developers to find financing and solar equipment supplier. </span></p> <p><span style="font-size:11pt">Solar segment is slowed down due to sector owes like inadequate evacuation facilities, imposition of safeguard duty, uncertainty on GST, fluctuation of solar prices and PPA renegotiation with discoms. Imposition of capping on solar tenders is poised to drag down the pace of solar installation targets and participants of solar tenders will see a downfall.</span></p>