The Indian Government came up with an increase of Rs.7.50 per litre in petrol prices yesterday. This is the steepest one-time increase in petrol prices in Indian history.
Through various news channels, we also learned that government (State Oil Companies) is loosing Rs.8/litre of petrol; thereby justifying the price hike.
At the same time, we learned that the government is loosing Rs.13/litre of diesel. And there were talks about maybe an increase in prices of diesel; maybe Rs.3-Rs.5 per litre.
I am not sure if that will happen because a diesel price hike will have a direct impact on inflation.
But this shows that sooner or later; the government will need to bow down to economics and increase prices of diesel.
Decentralized solar suddenly becomes more attractive:
1. Higher cost per kWh with diesel compared to Solar
2. Operating hassles in diesel power generation
3. Increasing (expected) diesel cost and decreasing solar cost
4. Green Image of a company
5. Government subsidies when combined will make solar more attractive
Suddenly the off-grid market seems more attractive.