India cuts floor price for solar-energy credits to boost demand
Chennai: India cut the floor price for solar energy credits to revive demand as companies try to meet their year-end obligations for energy produced from renewable sources.
Each solar-credit certificate will have a floor price of Rs.3,500, according to an order by the government’s Central Electricity Regulatory Commission. The maximum price will be Rs.5,800. The prices of non-solar renewables certificates remain unchanged.
The demand for solar energy certificates hasn’t picked up even as the fiscal year-end approaches on 31 March, said Vishal Pandya, director, REConnect Energy Solutions Pvt. Ltd.
The government requires state-run electricity distributors and large industrial companies to get as much as 10% of their energy from renewables. Companies not able to meet their obligations must purchase electricity from clean-power plants sold over power exchanges in monthly trading sessions. Solar credits are traded separately.
Companies have time till 31 March to buy credits. Each credit represents 1 megawatt-hour of electricity fed into the grid. Bloomberg