Solar Financing


Consolidation in the Indian Solar and Other RE Sectors

Recently, I had written a detailed blog post on the M&A and related investments happening in the Indian solar power sector.

Read an interesting article in the Hindu Business Line that reviewed the various M&A and investment activities happening in the Indian solar power sector in specific, and renewable energy in general.

Such an acceleration and consolidation […]

What is the right solar tariff for India – 4.78, 4.63 or 4.34?

After an avalanche of low solar tariffs ending with a super low solar tariff of Rs 4.34/kWh in the latest reverse biddings held in Nov ’15 and Jan ’16, the market suddenly seems to be retracting.

The recent lowest discovered tariff for Karnataka was Rs 4.78/kWh, a good 10% higher than the previous lowest.

The chart, courtesy ICRA Research […]

Karnataka Farmer’s Solar Scheme – Solar Mango Assistance in Financing Avenues for Farmers & Investors

The Karnataka farmer’s scheme, which was launched in 2015, has been one of the most attractive schemes.

It provides Rs 8.4/kWh as the tariff, one of the highest in the country, and farmers holding land in Karnataka could bid for upto 3 MW.

The scheme was so attractive that the online bidding, done on a first-come-first-served basis, concluded within […]

Captive Solar Power Plants Becoming popular with Indian Companies

I had earlier written a blog post Captive Solar Power Plant – Is it Good for My Company? that received quite a few queries and comments, with some of them saying it is a bit too early for Indian companies for think of captive solar as the business case might not be strong enough.

I would […]

Softbank Too Bids at Rs 4.63/kWh for 350 MW Solar – An Analysis of the Magic Number 4.63

All right, so a few weeks back, we were all circumspect when Sun Edison bid at Rs 4.63/kWh for 350 MW solar power plant in Andhra Pradesh under the National Solar Mission.

How could this be? – we asked among ourselves. Perhaps Sun Edison is quoting an unsustainable price?, wondered many; while a humbler few said – perhaps Sun Edison knows something […]

Business Models for MW Solar Power Plants in India

For those keen on becoming a solar power developer in India, it is important to understand the various business models under which solar power plants get built.

Power plant development belongs more to the infrastructure sector than to consumer product sector, in the sense that these are investments that pay off well in the long term, and in that these are businesses […]

Costs for Small MW-Scale Grid Connected Power Plants in India – LCOE and Optimal Tariff

Within this section you will find

Highlights & inferences
Maximising power generation – details
Minimizing costs – details
With solar trackers

Pessimistic assumptions
Acceptable assumptions
Optimistic assumptions

Without solar trackers

Pessimistic assumptions
Acceptable […]

Indian Banks and their Lending for the Solar Sector

It is a well-known cliche that banks are most willing to lend to those who…don’t need their money.

It is somewhat true for solar as well. Or at least the corollary is true – Indian banks have not exactly been keen on lending to many aspiring solar developers who however neither have a balance sheet nor […]

Private Solar PPAs – 61 MW Solar Project to Provide Power to Google Data Center

Currently, most solar power generation in countries such as India takes place through grid-connected, MW scale solar power plants.

Of course, until recent times it was the other way round – with Germany and Japan having over 90% of their solar power generated from distributed, rooftop solar power plants. But the times, they are a-changing, and it is currently grid connected MW scale power plants […]

India’s IDBI Bank raises US$350 million through Green Bond issue

There’s some good news on the financing front, with IDBI Bank raising $350 million through green bond issue.

Green bonds, by providing incentives such as tax exemptions to those invest in them, could make lenders such as IDBI provide renewable energy financing at a lower interest rate than those prevailing in India, as these green bonds are usually purchased by international players […]