Wholesale solar power prices have reached another record low in India, faster than analysts predicted and further undercutting the price of fossil fuel-generated power in the country. The tumbling price of solar energy also increases the likelihood that India will meet – and by its own predictions, exceed – the renewable energy targets it set at the Paris climate accords in December 2015. At an auction in May, two power companies offered to charge 2.62 rupees per kilowatt-hour of electricity generated from solar panels – which they hope to build at an energy park in the desert state – besting the previous record-low bid was 4.34 rupees per kWh, set last year. Analysts called the 40 percent price drop “world historic” and said it was driven by cheaper finance and growing investor confidence in India’s pledge to dramatically increase its renewable energy capacity. Importantly, it reduces the market price of solar tariffs well below the average charged by India’s largest coal conglomerate, currently around 3.20 rupees per kWh. And a draft report by the country’s electricity agency in December predicted that capacity would increase to 275 gigawatts by 2027.