India solar prices set to drop amid competition, lower costs

New Delhi

THE price paid for solar power in India at auction is set to fall below last year's record lows for the South Asia nation, driven by plummeting panel prices, falling interest rates and competition among developers seeking a slice of the country's renewables market.

Prices could dip lower than the 4.34 rupees (nine Singapore cents) a kilowatt-hour offered in auctions held in the state of Rajasthan a year ago, according to at least one developer of solar projects in India.

"This year we will see prices fall below four rupees a kilowatt-hour for sure and it will be viable," said Rahul Munjal, chairman and managing director of Hero Future Energies Pvt, the clean-energy arm of Hero Group, one of India's l…