Boost for zero-emission sources as global capital backs Indian solar power

The tumbling tariffs of solar power, however, have slashed the expectations of returns by investors from 14 per cent to 12 per cent

Indian solar power continues to draw foreign capital as plunging tariffs offer ample opportunities to invest in clean, zero-emissions energy sources.

A study jointly commissioned by US-based think tank Institute for Energy Economics & Financial Analysis (IEEFA) and JMK Research & Analytics shows that the current solar tariffs hovering at Rs 2.50-2.87 per unit is 20-30 per cent cheaper than the cost of power generated by existing thermal power stations. Also, the prevailing cost of solar power is nearly half the generation cost of new coal-fired power in the country.

These numbers (as on March 31, 2020) are a testament