As the current increasing demand of sustainable & clean green energy sources grows rapidly across all sectors, from governments to businesses and individuals. In India, the availability of more sunlight can support the generation of more solar energy to save on electricity costs, benefiting commercial businesses. GSE Renewable Energy are known as top solar panel installation companies in India.
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.The installation of solar power plants, particularly 1 MW systems, is the most popular solution for industrial and commercial sectors providing businesses with a reliable and cost-effective energy solution.
In this post, we’ll explore the key aspects of 1 MW solar power plants in India, including their specifications, cost benefits and the factors that influence the overall cost.
The increasing demand for clean energy resulted in installing solar power becoming the best option for large-scale enterprises. 1 MW solar power plant can produce substantial energy to supply the power to commercial properties. By switching to solar, businesses can drastically cut energy costs, boost energy independence & support environmental sustainability.
The 1 MW solar power plant serves as an excellent solution for organizations that uses solar energy to fulfill their power requirements & save electricity costs. The understanding of solar power system operations and their advantages becomes essential when planning to install a 1 megawatt solar panel setup.
The installation of 1 MW solar power plants works better on the ground than on rooftops but rooftop installations remain possible. Ground-mounted solar configurations need less floor area and provide better layout freedom regarding solar panel directional positioning and angles. A ground-mounted solar power plant serves as the best option when you possess unused land areas.
The operational purpose of solar photovoltaic panels remains constant throughout all commercial applications regardless of a 1MW solar power plant’s cost or design. The photovoltaic system uses solar rays to produce emissions-free solar power. The solar panels contain multiple strings of silicon alloy solar cells that generate electrons through sunlight photons while the electrical field changes. The Photovoltaic Effect generates direct current (DC) through this process.
The generated energy moves through wired systems to reach an inverter which converts it into alternating current (AC) electricity suitable for operating electronic devices and appliances. The installation of solar panels requires exact planning that includes correct wiring alongside proper orientation and panel angle selection. The strategic approach ensures ideal sunlight conditions which maximize the output of solar panels especially during peak sunlight hours thus improving both the cost and profit of 1 MW solar power plants in India.
To install a 1 MW solar power plant in India one needs complete understanding of basic components and their technical specifications. A typical 1 MW solar power system consists of standard elements that include these components.
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 |
The normal price range for a 1 MW solar power plant in India amounts to Rs 4 to 5 crores. Multiple elements determine the total cost needed for establishing a solar power plant. Solar panels serve as the main component while different types of panels exist in the market. Solar energy systems rely on crystalline solar panels which include both monocrystalline and polycrystalline variants.
The superior efficiency of monocrystalline panels increases the total expense of Indian solar power plants and affects the 1 MW solar panel price in India. The selection process of a suitable solar plant demands consumers to evaluate multiple factors which match their business requirements.
| 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.
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
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 Indian government supports renewable energy through various initiatives and financial programs which help businesses install 1 MW solar power plants. The government provides financial assistance through subsidies and incentives which decrease startup expenses for businesses transitioning to solar power systems while improving their investment returns. The financial assistance for building a 1 MW solar power plant in India follows this structure:
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 1MW solar power plant demonstrates strong potential to generate both profits and success. Organizations that select either CAPEX or OPEX financing models can get access to solar power benefits that lower costs and create green electrical power while advancing sustainable development. The implementation and operation of 1MW solar power plants becomes more efficient through the expert support provided by reputable companies such as GSE Renewables. Through their renewable energy expertise GSE Renewables assists businesses to achieve maximum solar power benefits and guide them toward sustainable profitability.
The operation of a 1 MW solar farm generates profitable outcomes. The profitability of a solar farm depends on its location together with electricity rates in the area and government incentives and operational efficiency. A properly managed and designed 1 MW solar farm produces substantial investment returns when executed correctly.
A 1kW solar system needs an open space of 6 square meters for installation. The installation of 1 megawatt solar panels demands more than 6000 square meters of available space. The required space size depends on both the number of solar panels and the selected mounting system.
The two financing approaches provide unique benefits to users. Your business can select solar ownership through the CAPEX model when it possesses enough financial resources. The PPA agreement under the CAPEX model allows you to pay lower monthly rates through a 10-25 year period if upfront payments are not possible.
The operation and maintenance of a 1MW solar power plant proves to be simpler than most people expect. A basic cleaning kit enables proper maintenance of solar panels through regular cleaning procedures. The panels need to stay free of any buildup to reach their maximum operational efficiency.
A 1 MW solar power plant needs 2,500 high-quality solar panels with 400 watts each for its operation. The exact number of panels depends on which panel wattage system is selected.
The installation of a 1 MW solar power plant in India requires an investment between INR 4.5 crores and INR 6 crores which translates to USD 540,000 to USD 720,000. Solar power plant installation expenses depend on multiple variables including geographical location and solar panel type and installation difficulty and monitoring system and inverter requirements.
GSE renewable energy provides complete solar solutions that cover the design and installation and maintenance services for 1 MW solar power plants. The plant receives optimized solar installation optimization from Avaada experts who guarantee compliance with regulations while delivering enhanced return on investment.
One megawatt of solar power plant capacity produces about 4,000 units daily (4 units x 1,000 kW) and 1,20,000 units monthly and 14,40,000 units yearly.
4,000 units per day (4 units x 1,000 kW),
1,20,000 units per month, and 14,40,000 units per year.
Solar power plant production levels differ according to location and weather conditions as well as panel operational efficiency.
Our Blogs With a combined experience of over 250 years and the successful management of 30 MW of solar energy projects, GSER offers the most efficient solutions. ESG & Solar: How Sustainable and Environmentally Friendly is Solar Energy? Environmental, Social and Governance (ESG) principles have...
Read More
Our Blogs With a combined experience of over 250 years and the successful management of 30 MW of solar energy projects, GSER offers the most efficient solutions. Maximizing Solar Efficiency: Proven Strategies for Businesses to Optimize Their Solar Energy Systems With electricity expenses on the...
Read More
Our Blogs With a combined experience of over 250 years and the successful management of 30 MW of solar energy projects, GSER offers the most efficient solutions. MSEDCL Tariff Impact on Solar Energy Maharashtra State Electricity Distribution Company Limited (MSEDCL) has proposed changes in the...
Read More