(Bloomberg) -- Developers bid record low prices to sell power from solar projects to be built on rooftops of government and private buildings in auctions conducted by the Indian state of Madhya Pradesh.
The lowest bid came in at 1.58 rupees (2 U.S. cents) per kilowatt-hour, the lowest ever in the country, the state government said in a statement Tuesday. The remaining bids ranged from 1.69 to 2.35 rupees. The projects will service municipal and police buildings, colleges, industrial training and polytechnic institutions, as well as some private entities.
The tariffs are valid for one year and will escalate by 3 percent annually for 25 years.
The tender in Madhya Pradesh is being implemented as part of India’s larger rooftop solar program with support from the World Bank and International Solar Alliance. Under the model, consumers would pay for electricity generated by the selected contractor, who will undertake design, supply and installation along with operation and maintenance of the rooftop project for 25 years, the release said.
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