The wholesale price of solar power has hit a record low in India.
At a reverse auction in Rajasthan this week, power companies Phelan Energy and Avaada Power each offered to charge 2.62 rupees/kWh of electricity generated from solar panels.
They were bidding for the fourth phase of the Bhadla solar project in the Indian state.
Power Minister Piyush Goyal tweeted: “Another milestone towards PM @narendramodi’s vision of clean affordable power for all: Bhadla Solar Park achieves tariff of Rs. 2.62/unit.”
It has been dubbed as “historic” by analysts, who believe the fall in price was driven by cheaper finance and growing investor confidence as India has pledged to increase its renewable energy capacity.
Last month, a member of the World Bank, IFC, said a tariff of 4.4 cents/kWh was offered through a bidding process for a solar project in Madhya Pradesh.
The Indian Government has set another record in the amount of wind capacity installed over the last year.