That's a very good question, and we will try and answer it as comprehensively as possible here. Corporate PPAs in India have typically been at a 50 percent or higher premium over bids at government backed tenders, and for good reasons. Right at the top is the matter of scale. The low rates of Rs 2.5Read more
That’s a very good question, and we will try and answer it as comprehensively as possible here. Corporate PPAs in India have typically been at a 50 percent or higher premium over bids at government backed tenders, and for good reasons. Right at the top is the matter of scale. The low rates of Rs 2.50 and around that you see for solar tenders are for capacities that typically are in the 100 MW plus range, at the least.
Secondly, government tenders come with significant flexibility on location, something most corporate PPAs don’t. In a majority of cases, particularly large solar rooftops, the installations have to be in the same state or even corporate plant site. That impacts generation.
Then we have the issue of long term government PPAs versus corporate ratings, which affects cost of funds for the developer. Funds are typically raised for shorter tenures, at higher costs in case of corporate PPAs.
Finally, project timelines in government tenders are 24 months or higher, allowing developers to make the most of buying opportunities for key inputs like modules. In corporate deals, project timelines can be as little as 6 months, forcing developers to move faster with limited flexibility.
All of these add up to a significantly higher cost, and this is before taking into account multiple charges at state level open access regulations, versus supplying to discoms directly.
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If you want to apply for residential rooftop solar project and live anywhere in India, you are entitled for a central govt subsidy of Rs 78,000/- if you are planning a project of upto 3kW or more. However, in case your state gives you additional susbsidy, you can get more. For example, a UP residentRead more
If you want to apply for residential rooftop solar project and live anywhere in India, you are entitled for a central govt subsidy of Rs 78,000/- if you are planning a project of upto 3kW or more. However, in case your state gives you additional susbsidy, you can get more. For example, a UP resident for a 3kW system can get Rs 78,000/- from MNRE and Rs 30,000/- from UPNEDA (UP govt). So, in total you will get Rs 1,08,000/- for a 3kW system or a system more than 3kW. It is because there is a ceiling for connections after 3kW.
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