Bridge To India expects record low bids in the 1-GW rooftop solar tender in India, which offers a capital subsidy of between 35% and 90%.
The new tender is for capacity at government buildings and these have already been identified. Over 70% of the installations will be at buildings of the Ministry of Human Resources and Development, the Indian consultancy said, which means that most of the solar photovoltaic (PV) systems would be located at educational and training facilities.
The last 500-MW rooftop solar tender by the Solar Energy Corporation of India (SECI) resulted in all-time low rates of INR 3 (USD 0.045/EUR 0.042) per kWh for special category states and Bridge To India says the new tender could see tariffs fall even lower for that category. This is because of the significant capital subsidy offered, the fact that the buildings have been identified, and also because government off-take contracts are more bankable than agreements with the private sector, the firm explained. It expects “a very enthusiastic response” from both rooftop solar installers and utility solar companies.
The subsidy covering a portion of the total capital cost will range from INR 18,750/kWp for general category states to as high as INR 45,000/kWp for special category states. That amount will be cut in the event of delays in the construction timetable.
As previously announced, bidders in the 1-GW rooftop tender have two options -- they can finance, own and operate the systems, selling power to the off-taker under long-term contracts, or just install them under engineering, procurement and construction (EPC) deals. The capacity is divided 70/30 between these two options.
(INR 100 = USD 1.48/EUR 1.39)
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