Gujarat new Solar tariff regulations

GERC has finalised the solar tariff regulations for the new control period. The Commission had for the first time specified separate costs for domestic and imported cells/modules in the draft,  however in the final order the Commission has approved just one capital cost for all types of cells/modules. The brief of parameters is as follows:

Parameter Value
Plant Cost
Capital Cost 615 Lakhs/MW (Large rooftop and MW scale plants)
  0.80 Lakhs/kW (kilowatt-scale system)
O&M Cost 10.90  Lakhs/MW/Annum
  0.01 Lakhs/kW/Annum
Escalation in O&M 5.72% per annum
Performance Parameters
CUF 19%
Performance Degradation 1% Annual
Auxiliary Consumption 0.25% for MW Scale and 0% for kW Scale
Useful Life 25 years
Financial Parameters
Debt: Equity Ratio 70:30
Loan Tenure 10 years @12.70%
Insurance Cost 0.35% per annum
Interest on working capital 11.85% Annually
Working capital 1 month O&M and 1 month receivables
Depreciation 6% for 1st 10 years and 2% thereafter
ROE 14%
Discount Rate 10.647%

The Commission owing to reducing price trends in India has adopted the approach of 7% annual reduction in tariffs. Resultantly he tariff in the two categories is as follows:

Period   1 July 2015 – 31 March 2016 1 April 2016 – 31 March 2017 1 April 2017 – 31 March 2018
For Megawatt scale plants and Large Rooftop Plants
Without Accelerated Depreciation Benefit INR 6.77 INR 6.30 INR 5.86
With Accelerated Depreciation Benefit INR 6.17 INR 5.74 INR 5.34
For Kilowatt scale plants
Without Accelerated Depreciation Benefit INR 8.82 INR 7.83 INR 7.28
With Accelerated Depreciation Benefit INR 7.64 INR 7.11 INR 6.61

Download Tariff Regulation


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