Lok Sabha Question No. 4248 (UNSTARRED), answered on 2016-08-11
Subject: Fall in Prices of Solar Photovoltaic Modules
Ministry: NEW AND RENEWABLE ENERGY
Asked by: OM BIRLA

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED  QUESTION NO. 4248

TO BE ANSWERED ON 11.08.2016

## FALL IN PRICES OF SOLAR PHOTOVOLTAIC MODULES

## 4248.  SHRI OM BIRLA:

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:

- (a) whether  the  Government  has  noted  sharp  fall  in  prices  of  Solar  Photovoltaic  (PV) modules in the country, if so, the details thereof;
- (b) the details of companies which have got the permission to set up solar projects in the country during the last two years along with the details of those companies which have to commence the work in this regard; and
- (c) the steps taken by the Government to boost the solar power market in the country?

## ANSWER

MINISTER OF STATE FOR POWER, COAL , NEW & RENEWABLE ENERGY & MINES (SHRI PIYUSH GOYAL)

- (a): The  trend  from  last  few  years  has  shown  fall  in  prices  of  Solar  Photovoltaic  (PV) modules in the country. The details are as under:
- (b): The  solar  projects  are  setup  both  by  a  large  number  of  private  companies  and Government owned entities in the country. As on 31.7.2016, solar projects of 8062 MW have been setup. During last two years, solar projects, with the following details were setup:

| Financial year   |   Cost of PV modules per MW as per CERC's orders for the determination of Benchmark Capital Cost Norm for Solar PV power projects for the respective financial years (in lakh Rs.) |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2014-15          |                                                                                                                                                                             365.8  |
| 2015-16          |                                                                                                                                                                             332.35 |
| 2016-17          |                                                                                                                                                                             328.39 |

| Year    | Capacity added during year (MW)   | Cumulative capacity (MW)   |
|---------|-----------------------------------|----------------------------|
| 2014-15 | 1112.07MW                         | 3743.97MW                  |
| 2015-16 | 3018.883MW                        | 6762.853MW                 |

During the financial year 2015-16 and  financial year 2016-17, as on 30.06.2016, tenders for a  total  of  20,766  MW  of  solar  projects  were  issued.  Out  of  this,  as  on  30.06.2016,  Power Purchase Agreements for 8,482 MW have been signed and other projects are at various stages of commissioning.

(c): The Government is promoting  solar energy through fiscal and promotional incentives such as capital and/or interest subsidy, tax holiday on the earnings for 10 years,  generation based  incentive,    accelerated  depreciation,    viability  gap  funding  (VGF),  financing  solar rooftop systems as part  of home loan,  concessional excise and custom duties, preferential tariff for power generation from renewables, and foreign direct investment up to 100 per cent under the automatic route etc.

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