The normative cost of solar photo voltaic plants has been fixed as Rs 8 crore per megawatt of installed capacity for the year 2013-14. The cost has been fixed by the Central Electricity Regulatory Commission.    

The CERC’s normative cost is generally taken as the benchmark by developers and often forms the basis for tariff negotiations. For instance, in the forthcoming meeting of the would-be investors in Tamil Nadu and the state’s electricity generation and distribution utility, TANGEDCO, which is scheduled for November 23, the CERC norm can be expected to be taken as the reference cost of solar plants.    

The Commission has also taken the cost per mw of solar thermal plants at Rs 12 crore. In calculating the normative cost of solar PV as Rs 8 crore per mw and solar thermal at Rs 12 crore per mw, CERC has decreased the cost by Rs 2 crore per mw for solar PV and Rs 1 crore for solar thermal over its normative cost for the year 2012-13.    

For 2013-14, the Commission has taken Rs 7.87 per kWhr for solar PV and Rs 10.69 for solar thermal.