The government has allowed solar power developers more time for executing projects, a move which may bring down project costs and tariffs of power generated from this source.As per recent amendments in the competitive bidding guidelines for solar projects, for capacities above 250 MW, developers now have two years to commission the project from the date of signing the power purchase agreement (PPA) with the procurer. The earlier deadline was 15 months.The deadline for commissioning projects within solar parks has also been extended to 21 months from the date of signing PPA from 13 months earlier.A senior official from the ministry of new and renewable energy (MNRE) said the relaxation will allow developers more time to source equipment and help reduce the cost of setting projects up. “When timelines are relaxed, costs come down naturally,” the person said.The move will help make a level-playing field for developers in India, as similar timelines are followed internationally, said the official who did not wish to be quoted.The ministry has been receiving representations from developers on extension of deadlines for project completion, the official said.Industry experts said it’s an investor friendly move that will go a long way in addressing concerns of private developers, and may help reduce solar tariffs.A comfortable timeline for project execution and China’s recent decision to put the brakes on its solar capacity addition, which would reduce the cost of solar equipment for India, could see solar tariffs registering a fall by 12-15% per unit, said Vinay Rustagi, managing director at solar consultancy Bridge to India.The government could also offer incentives for early completion of projects, which would ensure that the timeline doesn’t get delayed by design, he said.An industry executive said the commissioning dates have been extended “as transmission woes are here to stay”. “Since there was a pressure from government to take things forward and the IPPs (independent power producers) had these concerns, this was a suitable middle path for completion of projects,” the executive said on condition of anonymity.As part of the said amendments, the government has also extended land acquisition timeline from seven months to one year from the date of PPA, and the same extension has been provided for attaining financial closure in terms of the PPA.Kameswara Rao, leader — energy, utilities and mining at PwC India, said the amendments come as relief for developers in terms of project milestones while the government has been trying to de-bottleneck some of the problem areas, particularly, transmission connectivity.