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A sharp increase in the prices of solar modules and commodities such as steel, together with rising freight costs will hit 25 GW private solar capacity under construction, of which nearly a fifth will see a major impact on the return on equity (ROE), CRISIL Ratings said on 25 May 2022. This capacity of 5 GW, was mostly bid out between October 2020 and December 2021 and currently under implementation. These projects may see their ROE falling by as much as 140-180 basis points to around 7%, an official statement said. These projects were bid at relatively low tariffs of less than Rs 2.35 per kilowatt hour (kWh), at a time when module prices were softening and commodity prices benign.