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UPSC Prelims 2018 · Environment · Rules for the Planet
With reference to solar power production in India, consider the following statements: Which of the statements given above is/are correct?
- India is the third largest in the world in the manufacture of silicon wafers used in photovoltaic units.
- The solar power tariffs are determined by the Solar Energy Corporation of India.
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Show the answer and explanation
Answer: (d) Neither 1 nor 2
India was not a top wafer maker, and SECI does not set tariffs.
Statement by statement
1. ✗ WRONG India made very few silicon wafers — China dominates, and India imported most cells and wafers.
2. ✗ WRONG Tariffs are set by competitive bidding and regulators (CERC/SERCs), not by SECI. SECI runs auctions.
The idea
A solar panel is made in steps: polysilicon → ingot → wafer → cell → module. India’s factories work mostly at the last steps (cells and modules) and import the earlier ones, mainly from China. On price, nobody “fixes” a solar tariff: developers bid, and the lowest bid becomes the tariff.
SECI invites bids for a solar project → Developers quote a price per unit → Lowest bid wins → The electricity regulator adopts that tariff → SECI signs the power purchase agreement
Why the others are wrong
(b) SECI runs auctions; it doesn’t determine tariffs.
The trap
SECI is involved in solar pricing (it runs the auctions), so statement 2 feels right.
Also know
SECI (2011) is a company under the Ministry of New and Renewable Energy. The Central and State Electricity Regulatory Commissions are the bodies with legal power over tariffs. To build the full chain at home, India runs a production-linked incentive scheme for solar modules. India’s target is 500 GW of non-fossil power capacity by 2030.
🔒 SECI = auctions / PPAs. Tariffs = bidding + CERC/SERC. PLI scheme now pushes domestic wafers.