The falling value of US'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 India 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.
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.