Record Low Tariffs Drive India to Lead Global Solar Cost Competition

A cornerstone of India’s solar boom has been the unprecedented fall in electricity tariffs. The e‑reverse auction mechanism forces developers to bid the lowest possible price, driving tariffs from roughly ₹18 per unit in 2010 down to a record low of ₹2.44 per unit.

This cost advantage has made Indian solar power one of the world’s cheapest. The levelised cost of electricity (LCOE) for utility‑scale solar in 2025 was $35 per MWh, markedly lower than the global average of $44 per MWh, reinforcing India’s attractiveness for domestic and foreign investors.