The falling value of India 's currency threatens the country ’s plans to develop solar power . An % ( $ 0.01 ) reduction in the exchange rate would raise the tariffs on solar modules , which are imported or bought at higher prices . The last time the Rupee collapsed , in 2013 , it affected $ 568 m of solar projects , and this collapse could raise costs by up to 4 % . Modules represent half of total costs , and 80 % of components are imported . Renegotiations of supply contracts , which developers are unprepared for , would delay solar projects .
The falling value of India's currency threatens the country’s plans to develop solar power. An INR1 ($0.01) increase in the exchange rate would raise the tariffs on solar modules, which are imported or bought at US prices. The last time the Rupee fell, in 2013, it affected $568m of solar projects, and this time could raise costs by up to 4%. Modules represent half of project costs, and 80% of components are imported. Renegotiations of supply contracts, which developers are unprepared for, will delay solar projects.