Solar prices may rise due to GST & custom duty increase: CRISIL

New Delhi, 26 Oct (KNN) The coal crisis and climate change has jolted the economy and has made us look out for alternatives to fossil fuels such as the solar energy.

Following India’s quest to climb up on the world’s solar energy dominance chart sitting right below China and United States, it is forecasted by CRISIL Ratings that there might be rise to INR 2.6 per unit to INR 2.7 per unit in solar tariffs over FY22-23 due to the increase in GST on renewable energy  and customs on imported solar modules. The rise in the tariff would come from an all-time low of INR 2 per unit.

The Director of CRISIL Ratings stated that this might make the solar bids in the future expensive as developers will have to maintain returns.

India has surpassed Japan (which held a 6.3% share of the market) and is right below the U.S. (which held an 11.9% market share) in global ranking of solar energy producers.  

Most of India's capacity for the year was installed at utility plants, which accounted for the majority of its 10.1 GW new installed capacity for the year. At the end of 2019, the country's cumulative installed capacity was approximately 42.9 GW.