Why solar at Rs 2.36 is a big deal

A lower cost of solar power means cheaper electricity in the long run as it replaces more costly generation. That is the next step the government is working on

India concluded another solar auction last week, as the pandemic raged on, and managed to set a fresh national record for the cheapest solar power.

New record: The auction for 2,000 me­gawatts by Solar Energy Corporation of India or SECI yielded a tariff of Rs 2.36  per unit of solar power, beating the previous low of Rs 2.44 that held for two years (see chart: Lowest annual tarrif at auctions). Despite the uncertainty and risks emerging from the pandemic, and the likely imposition of customs duty on the import of PV panels, a new record emerged.

“Covid-19 fails to halt the aggressive