Benchmark Price for Solar Project 2015-16 : CERC

Finally CERC ( Central Electricity Regulatory Authority ) has come up with Benchmark Capital Cost for Solar Pv and Thermal Project for Year 2015- 16 .  Interested to see that Although Thermal Project Cost has been kept same at INR 12 Crore / MW , but PV project has been Notified at Lower end of  INR 6.05 Crore / MW with maximum drop considered in Module Cost which has now been notified as INR 3.32 crore .

Most of the EPC/IPP and Even state nodal agencies have put strong objection on :

  • Forex Exchange rate
  • Modules Rate
  • Separate Capital cost for Domestic modules and Imported Modules
  • Land Cost ( Vary from 2 Lakh/acre to 25 lakh/acre )

But CERC have used MERCOM Capital report and recent reverse bidding result to finalize the price .

Looking from a Layman prospective , this seems good and fair it shows optimism  for future price reduction and increasing feasibility of  project . But as a sector expert would vary that if this cost is considered as benchmark , tariff ‘s will surely fall and this could in-turn take away investor interest in putting up or bidding in solar projects at all .

But as the saying goes , ” Lets put the sunny side up and with sun god on our side , hope to overcome this challenge  too ” .

Benchmark cost breakup
Benchmark cost breakup

For Entire PDF and discussion kindly download the copy of Judgement from below mentioned link :

http://www.cercind.gov.in/2015/draft_reg/Exp_16.pdf or click here 

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5 thoughts on “Benchmark Price for Solar Project 2015-16 : CERC

  1. I have 30 bigha land in Dungargarh Distt. Bikaner (Rajasthan) & interested to set up solar plant & tie-up with Govt. Suggest & guide

    Like

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