Low bids hurt IRR of solar power developers, aggressive bids to continue

Solar power industry is expecting solar modules prices to fall further owing to global oversupply

The fall in bid rates for solar power in this financial year is likely to spill over to the coming year. This could hurt the internal rate of return (IRR) of solar power developers.

Sector experts say the low bids are due to the declining input price of solar modules. Bridge to India (BTI) estimates that the  average harmonised rate now gives an equity IRR of 14.2 per cent, significantly below the benchmark expectation of 18. The body tracks investment in the Indian clean energy sector. Solar energy rates touched a historic low last month in the bidding for the Rewa