Cost of generation of solar power

The cost of generating solar power depends, inter alia, upon intensity of radiation, size of the solar plant, cost of financing, etc.

The tariff for solar power is now being determined largely through tendering process.

For installation of rooftop solar PV projects, the Ministry of New and Renewable Energy (MNRE) has worked out benchmark cost as follows:

  • Upto 10 kWp : Rs. 60,000/- per kW
  • 10 kWp – 100 kWp : Rs. 55,000/- per kW
  • 100 – 500 kWp : Rs. 53,000/- per kW

The Ministry of New & Renewable Energy is implementing Grid Connected Rooftop and Small Solar Power Plants Programme, wherein, Central Financial Assistance (CFA) is being provided for installation of rooftop solar PV plants in residential, institutional and social sectors.

The CFA is upto 30% of the cost arrived through tender process or the benchmark cost prescribed by MNRE, whichever is less, in case of general category states/UTs and upto 70% in case of special category states/UTs.

This information was provided by R.K. Singh, Union Minister of State (IC) Power and New & Renewable Energy in written reply to a question in Lok Sabha today.