Solar power systems with a capacity exceeding 100kW are commonly referred to as Solar Power Stations, Energy Generating Stations, or Ground Mounted Solar Power Plants. A solar power plant with a 1MW capacity is capable of independently powering a commercial establishment. Occupying approximately 4 to 5 acres of land, this size of solar utility farm generates around 4,000 kWh of affordable electricity on a daily basis. Any excess energy can be sold to the government utility company using the net metering mechanism.
In India, the typical 1 MW solar power plant cost falls within the range of Rs 4 to 5 crores. Various factors contribute to the initial investment required for a solar power plant. Among these factors, the primary component is the solar panel, which is available in different types. Crystalline solar panels, including monocrystalline and polycrystalline variants, are commonly utilized in solar energy systems.
The monocrystalline panels possess higher efficiency ratings, contributing to the overall cost of a solar power plant in India, including the 1 MW solar panel price in India. There are also several other considerations that consumers must take into account to assemble the most suitable solar plant for their specific business needs.
| Particulars | Estimated Cost |
| Solar Panels | 3 Crore |
| Solar Inverter | 1 Crore |
| Combiners + Junction Boxes | 20 Lakh |
| Protective Gears Arrangement | 10 Lakh |
| SCADA & Data Logger System | 7 Lakh |
| Land Bank | *5 Acre |
| Erection of Project | 50 Lakh |
| Total Project Cost | 4.87 Cr. (Approx.) |
Note: Please note that the mentioned figures are for illustration purposes only. For accurate solar 1 MW power plant cost and profit in India, consult a professional solar company for a personalized quote based on an on-site assessment.
Let’s talk about how much electricity a 1 MW solar power plant can make. In perfect conditions, a small 1 kW solar power plant can produce about 4 units of electricity in a day. So, if we have a bigger plant, like a 1000 kW or 1 MW plant, it could make around 4,000 units in a day and about 120,000 units in a month in ideal condition.
However, there are things that can affect how much electricity a solar plant can produce. Things like the weather, how the panels are placed, the quality of the equipment, where it’s located, and how well it’s taken care of can all make a difference. On really sunny days, it might make up to 6 units in a day.
Key components | Solar panels, solar mounting structure, solar inverter, solar batteries (optional), the balance of system (cables, fuses, MCBs, and Distribution boxes) |
Energy output | Wonder how many units your 1MW solar power plant can produce? – 4,000 kWh of electricity per day – 1,20,000 kWh of electricity per month – 14,40,000 kWh of electricity per year |
Area required | 4 to 5 acres of land is required for 1MW solar plant |
There are three primary types of solar power plants operating on the same principle known as the ‘Photovoltaic Effect’. Each type demands distinct solar components, directly influencing 1 MW solar power plant cost and profit in India.
Solar photovoltaic panels serve a uniform purpose in commercial settings, irrespective of the cost or type of a 1MW solar power plant. They harness sunlight to produce clean solar energy. These panels are equipped with multiple strings of solar cells, typically composed of silicon alloys, which release electrons when exposed to photons in sunlight, triggered by changes in the electrical field. This phenomenon, known as the ‘Photovoltaic Effect,’ results in the generation of direct current (DC).
Once the energy is generated, it travels through a system of wires to an inverter, where it undergoes conversion into alternating current (AC) electricity, ideal for operating electronic devices and appliances. Precise planning is vital during the installation of solar panels, taking into account aspects such as proper wiring, angle, and orientation. This careful strategy guarantees optimal sunlight exposure, allowing the panels to yield maximum output, particularly during the peak sunlight hours, thereby enhancing the 1 MW solar power plant cost and profit in India.
When considering a 1MW solar power plant for your business or industry, you have the option to invest through two models:
The one megawatt solar power plant cost and availability play a crucial role in making the right choice.
Under the CAPEX or one-time investment model, the consumer elects to make an initial capital expenditure. By covering the entire one megawatt solar power plant cost, you assume ownership of the solar plant and the energy it produces.
As the owner of the solar power system, you enjoy the advantages of receiving clean electricity at no additional cost for a period of over 25 years. This investment model is most appropriate for acquiring systems with a capacity of 100kW or lower, suitable for commercial or residential purposes.
The 1 MW solar power plant cost in India, including the 1MW solar panel cost in India, can be overwhelming for many businesses in 2023. However, there is a convenient solution to transition to solar power and acquire a high-capacity plant through third-party financing options. With this approach, you only need to cover the operational expenses of the solar power plant while enjoying its benefits.
Under this model, a solar energy company installs the solar plant at no upfront cost, based on a Power Purchase Agreement (PPA) spanning 10-25 years. Following the installation, you make monthly payments at a lower rate than the grid tariff, determined by factors such as the PPA duration, installation site, and credit rating. Essentially, the PPA agreement enables you to procure electricity from an alternative supplier at a significantly reduced rate.
Read more: CPEX or OPEX Model Solar Rooftop Solution
1MW Solar Power Plant Project Report
Presented here is a 1MW solar power plant project report, outlining an approximate sequence of activities for this specific system capacity.
Particulars | Description |
Power Plant Capacity | 1-megawatt |
Annual power generation | 14.60 Lakh (On Average) |
Degradation over the first decade (1 to 10 years) | 0.05% per year |
Degradation from 11 to 25 years | 0.67% per year |
Debt Percentage | 70% |
Equity Percentage | 30% |
Rate of Interest (Indian) | 13.0% |
Rate of Interest (Foreign) | 10% |
Repayment Period (Indian) | 11 years |
Repayment Period (Foreign) | 15 Years |
Percentage of Indian Loan | 70% |
Sale of Electricity | Rs.6.49 |
Cost of Project (per MW) | 450 Lakh |
O&M Cost (per MW) | 8 Lakh/year |
Depreciation | 5.28% |
Corporate Tax | 30.28% |
Minimum Alternate Tax | 18.38% |
Project Cost | 450 Lakh |
Debt | 355 Lakh |
Equity | 95 Lakh |
The successful implementation of unique solutions by GSE Renewables Asset Management resulted in significant benefits for both Integrated Food Park Pvt Ltd (Future Group), the client, and the investor. The consumer, Integrated Food Park Pvt Ltd, experienced an annual benefit of 44 lakhs, while the investor enjoyed a savings of INR 9.5 lakhs on an 85-lakh yearly revenue, representing an 11% increase. Furthermore, the investor was relieved of the hassle of plant maintenance, allowing them to allocate their time and resources more efficiently. This achievement further complements the earlier mentioned project report for a 1MW solar power plant.
The potential for success and profitability in a 1MW solar power plant is evident. Whether through the CAPEX or OPEX financing model, businesses can harness the power of solar energy to reduce costs, generate clean electricity, and contribute to a sustainable future. With the expertise and support of reputable companies like GSE Renewables, the process of implementing, operating, and maintaining a 1MW solar power plant becomes more streamlined and efficient. By leveraging their knowledge and experience in the renewable energy industry, GSE Renewables can help businesses maximize the benefits of solar power and navigate the path towards a greener and more profitable future.
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Yes, a 1 MW solar farm can be profitable. The profitability depends on factors such as location, local electricity rates, government incentives, and operational efficiency. With proper planning and management, a well-designed 1 MW solar farm has the potential to generate significant returns on investment.
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