1mw Solar Power Plants: Price, Specifications, and In-depth Insights
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1mw Solar Power Plants: Price, Specifications, and In-depth Insights

1 MW Solar Power Plant

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    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.

    One Megawatt Solar Power Plant Cost & Specifications

    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.

    Type: Solar Panel Installation Cost In India

    Generating Electricity: 1 MW Solar Plant Power Generation

    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 Specifications of 1MW Solar Power Plant:

    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

    1 MW Solar Power Plant Types

    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.

    1. On-grid 50 kW solar system: This system is connected to the government grid and regulated under net metering. It’s the cheapest option because it only needs solar panels and inverters. You can sell extra electricity back to the utility company and buy from the grid when needed.
    2. Off-grid 50 kW solar system: This operates independently and stores surplus energy in batteries. It’s useful for remote locations where grid access is difficult. Although it’s more expensive due to the need for batteries, it eliminates electricity bills and provides energy independence.
    3. Hybrid 50 kW solar system: This combines features of both on-grid and off-grid systems. It has net metering benefits and includes batteries for backup power. It ensures energy independence and uninterrupted electricity supply, making it a reliable option for businesses.

      Read More: Types of Solar Panel

    The Operation of a 1 MW Solar Power Plant

    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.

    Types of Investment Models

    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.

    Capex Model

    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.

    Opex or PPA Model

    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

    Our Success Story

    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.

    Conclusion

    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.

    Contact us today for more details!

    FAQs

    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.

    On average, a 1kW solar system requires an unobstructed area of 6 square meters. Hence, to install solar panels with a total capacity of 1 megawatt, an area of over 6000 square meters is necessary. The specific area required depends on factors like the number of solar panels and the chosen mounting structure.
    Both financing models offer their own advantages. If your business has the necessary capital, you can choose to become a solar owner through the CAPEX model. Alternatively, if making a significant upfront payment is not feasible, the PPA agreement under the CAPEX model provides an option where you pay a lower per-unit tariff rate on a monthly basis for a period of 10-25 years.
    Maintaining and operating a 1MW solar power plant is simpler than anticipated. Regular cleaning using a basic cleaning kit is all that’s required for solar panels. It is crucial to keep the panels free from any buildup to ensure optimal efficiency.
    Solar panels, the primary component in various solar power plants, typically come with a manufacturer’s performance warranty of 25 years. While these panels continue to generate power beyond the warranty period, their capacity may gradually decrease.

    For more information, feel free to get in touch with us!

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