Renewable Energy Certificates – Solar REC prices proposed to be dropped by more than 50%

Forbearance price of Solar RECs is proposed to fall below that of Wind RECs in the revised tariff range for RECs with effect from April 1, 2017 as announced by the Central Electricity Regulatory Commission(CERC). Forbearance price of Solar RECs will be Rs.2500/MWh whereas the forbearance of non-Solar RECs will be Rs. 2900/MWh. The floor price of both Solar RECs and Non-solar prices have dropped to Rs. 1000/MWh. The downward drop in the REC prices can be seen in the table below.

  Till 31.03.2012Till 31.03.2017Revised(on 30.12.2014) till 31.03.2017From 1st April 2017
Non SolarForbearance Price(Rs./MWh)3,9003,3003,3002,900
Floor Price(Rs./MWh)1,5001,5001,5001,000
SolarForbearance Price(Rs./MWh)17,00013,4005,8002,500
Floor Price(Rs./MWh)12,0009,3003,5001,000
Vintage MultiplierNoneNone2.66None