In recent years, India has taken significant steps towards transitioning to sustainable sources of energy. Among the most popular renewable sources of energy in India is solar power. Harnessing the power of the sun provides a clean, reliable, and cost-effective alternative to traditional energy sources. Fortunately, solar power purchase agreement rates continue to be relatively affordable in 2020.
A solar power purchase agreement, or PPA, is an agreement between a solar company and a consumer that allows the consumer to purchase solar energy at a fixed rate for an agreed-upon period. PPAs are an excellent way for consumers to take advantage of solar energy without the need for upfront investment.
For Indian consumers, solar PPAs are becoming increasingly popular, and for good reason. The Indian government has been actively promoting the use of solar power in the country, providing various incentives such as tax benefits, subsidies, and net metering policies.
As of 2020, the average solar PPA rate in India is around INR 3-4 per kWh (kilowatt-hour). This rate is relatively low, considering the significant return on investment that solar power can offer. However, the rates can vary depending on multiple factors, such as location, panel type, system size, and agreements with the solar company.
One of the primary reasons for the low solar PPA rates in India is the country`s abundant sunlight, which allows for high energy yield and lower production cost. Additionally, India`s strong focus on expanding its solar industry has resulted in a competitive market, driving down the costs of solar projects and making solar power more affordable for consumers.
The Indian government has set a target of installing 100 GW of solar power capacity by 2022. With this goal in mind, solar power purchase agreement rates are expected to remain competitive and affordable in the coming years. In conclusion, solar power PPAs continue to be an excellent investment opportunity for Indian consumers looking to take advantage of clean, renewable energy at an affordable price.