Solar power costs trend down, wind blows away tariff advantage.

Wind and solar, the two major renewable sources of energy being harnessed in India, offer a study in contrast.

While the price of solar energy has come down by 50 per cent in the last five years, primarily due to the introduction of competitive bidding based on tariffs, wind energy continues to be paid 'feed-in' or preferential tariffs, leading to a visible surge in tariffs the same period.

For instance, in 2011, when the government invited bids to build 500 MW of solar power capacity, participants quoted an average Rs. 12.15 per unit of power-a very high rate compared to the average Rs. 3.5 per unit price for domestic coal-fired electricity.

Indian Express