The effect of solar PV module price and capital cost on the levelized electricity cost of the solar PV power plant in the context of India

In this paper the effect of reduction in the prices of module cost and hence capital cost on the Levelized Electricity Cost (LEC) of a typical 1 MW Solar Photovoltaic power plant has been studied as per the available data of Central Electricity Regulatory Commission. A theoretical study is also made on the effect of inflation rate & interest rate on LEC. As a case study, Levelized Electricity Cost (LEC) (Rs/kWh) has been calculated for 1 MW Tail End Grid interactive solar Photovoltaic power plant of Rajasthan Renewable Energy Corporation Limited (RRECL) commissioned in March 2012 in Phagi, Jaipur (Rajasthan), India. Operation and maintenance cost has been assumed as 1% of the capital cost as per experience of the plant Engineers.