PPA Tariff Fairness
Is My Solar PPA Tariff Fair?
The question every board asks the CFO a week after signing. Here's how to answer it with data — not the developer's deck.
PPA Tariff Fairness
The question every board asks the CFO a week after signing. Here's how to answer it with data — not the developer's deck.
It happens on almost every deal. A week after the CFO signs a solar or wind PPA, a board member sees a cheaper tariff in the newspaper and asks: ‘Why are we paying a premium for the same power?’ Sometimes that gap is legitimate. Sometimes it's a genuine red flag. The only way to know is to benchmark your tariff against India's regulator-set SECI/CERC auction bands — which is exactly what the free Infinia PPA Index does in about 60 seconds.
The most common reason a quote looks cheaper is economies of scale — a 500 MWp project prices differently from a 100 MWp one. We've walked CFOs through exactly this: a board member's ‘cheaper’ reference tariff came from a much larger project, so the gap was logical, not a scam. But the opposite happens too: a tariff that looks competitive can hide an uncapped escalation or a banking clause that erases the saving by year three.
Stop guessing. Benchmark your number against the bands, then read the red flags to pressure-test the clauses. If you'd like an independent review, that's what a PPA consultant is for.
See where your tariff sits against India's regulator-set bands — free, no login.
Check the PPA Index →The answers, straight.
A fair tariff is in line with the latest SECI/CERC auction-discovered prices for the same project type, size and state, after accounting for open-access charges and escalation.
Most often economies of scale (a larger project) or a different clause/risk structure. A lower headline tariff is not always a better deal once escalation and banking terms are included.
Use the free Infinia PPA Index to compare your quoted tariff against India's regulator-set SECI/CERC auction bands in about 60 seconds.
There is no single fair rate — it depends on your state, your structure (captive, group captive or third-party) and what is loaded into the tariff. The honest test is a benchmark against regulator-set SECI/CERC auction bands at landed cost. The Infinia PPA Index runs that check in 60 seconds.
Yes. Wheeling, cross-subsidy surcharge and additional surcharge differ by state and can be revised mid-contract. A tariff that looks fair as quoted can be unfair at landed cost — always benchmark after charges.