1 MW Solar Power Plant: Types, Models, Price & Complete Details in India 2023
A solar power plant with a 1MW capacity or more can be considered as a “Ground Mounted Solar Power Plant, Solar Power Station or Energy Generating Station”. These solar power systems produce a large amount of electricity which is more than enough to power any company independently or can subsequently be sold to the government.
The latest guidelines of Govt. of India (MNRE) states that "Now anyone can generate electricity through solar power system and surplus electricity can be export through the net-metering system.
Today, anyone can set up a solar power plant with a capacity of 1KW to 1MW on their land or rooftops. Ministry of New and Renewable Energy (MNRE) and state nodal agencies are also providing 20%-70% subsidy on solar for residential, institutional, and non-profit organizations to promote such green energy sources. State electricity boards and distribution companies will assist you during the entire process. These incentives/schemes will boost the power generation in India and encourage people to install solar power systems.
Megawatt scale solar system
In a developing country like India, the consumption of electricity is increasing continuously and its production is limited. Also, we don’t have enough resources to store so much energy. Therefore, because of the upcoming energy consumption, it would be a wise thing to install a solar power plant.
Page Highlights:
1 MW QuickOverview
Power Generation
4000 kWH Units/Day
Average Cost
INR 4 to 5 Crore
(Inclusive of all taxes)
Annual Saving
1 Crore (Approx)
Area Required
4 to 5 Acres
#1. Types of Solar Power Plant
There are three types of solar power plants, which work on the same principle of the “Photovoltaic Effect”. These solar system consist of solar panels, a solar inverter, and solar batteries. The types of solar power systems are:
On grid solar power plants are best suitable for large institutes, commercial and industrial sectors because there is no load limit.
An on-grid solar system is a grid (Government electricity supply) connected system. This solar system will run your home appliances or connected load (without any limit) by using solar power. If your connected load will exceed the capacity of the installed solar power plant, the system will automatically use the power from the main grid. In case, your connected load is less than the generating capacity, it will supply surplus power to the grid. This type of system is recommended to reduce electricity bills only.
Off grid solar power plants are mostly used for homes and residential areas where backup is required due to regular and long power cuts.
An off-grid solar power plant is a battery-based solar power system. In this type of solar system, there are solar panels, solar inverter, and solar battery. This system will run your home appliances or connected load (as per solar inverter capacity) by using solar power. The unconsumed or surplus power will be stored in the solar battery bank. An off-grid solar power system is recommended where power cuts are the major problem.
Hybrid solar power plants are suitable for both residential and commercial locations. Just its components and capacity change according to its installation purpose.
A hybrid solar power plant is a combination of an on-grid solar system and an off-grid solar system. This solar system will combine the functionality of both solar power systems. One side, a hybrid solar system connects with the main electricity grid and on the other side, it simultaneously can be connected with solar batteries to provide backup to you.
#2. 1MW Solar Power Plant Design
A 1MW solar photovoltaic system can be design and customize as per your requirement. You can change this design after concerning a team of solar experts. Here we have a rough design of 1 megawatt solar power system below.
Components Required for 1MW Solar Power Plant
Quality solar components are a key to a successful and efficient solar power system. To set up a 1 megawatt solar power plant at any place, you need the following components. You can customize the solar system by increasing or decreasing the quantity of these components according to their power ratings.
We have used 400 watt solar panel and 1MW solar inverter for the calculation.
#3. 1MW Solar Plant Cost
The cost of solar power systems has changed recently and the government is promoting green energy in many ways. You can now install 1MW solar power plant by investing INR 4-5 crore. Thereafter, you can supply the electricity to the government for more than 25 years.
Installation Cost of 1MW Power Plant
For better understanding of investment in 1 megawatt solar power system, we have break down the overall cost in fragments. You can now compare and analyse the cost of solar panels, solar inverters and other accessories individually.
*Land value of 5 acre is not included in this table.
All the figures in above table are just to provide a rough idea. Don’t consider it as an exact and final cost of 1MW solar power plant.
Prices may subject to increase and decrease time to time.
1MW Solar Power Plant Maintenance Cost
In order to maintain the productivity and efficiency of a solar power system, its proper and timely maintenance is important. And it’s not hard to do so by wisely investing some money on its regular maintenance.
Particulars
Estimated Cost
Human Resource
10-12 Lakhs/ Year
Solar Panel Maintenance
1 Lakh/ Year
Site Maintenance
60,000 – 80,000/Year
Total Maintenance Cost
₹11,60,000 to ₹13,80,000/ Year
All the figures shown above are just to provide a rough idea. Don’t consider it as exact maintenance cost of 1MW solar power plant.
Prices may subject to increase and decrease time to time.
#4. Types of Investment Models
There are two ways/models to get a solar power system installed at your home, business, institute, and industry.
CAPEX Modal (One Time Investment)
OPEX or PPA Modal
#1. CAPEX Model (One Time Investment)
In the CAPEX model, capital expenditure will be all yours. You will have to pay the complete system’s cost to the solar system installation company in one shot. The power plant installed in this way will be your own system. You will be get benefited from free electricity for the next 25+ years. The CAPEX model will be best for you when you are planning to install a 100kW or less capacity solar system for your home or business.
1 MW Solar Power Plant
#2. OPEX Model (PPA)
In the OPEX model, only operation expenditure will be yours. A solar system installation company will install the complete solar system at their own cost on your rooftop through a 10-25 year Power Purchase Agreement (PPA) between you and the installation company. After the installation, you just need to pay per unit (less than the regular grid price) on monthly basis. The PPA rates (Rs.3 to Rs.7) depend on your installation size, PPA period, and your company’s credit rating. If you want to install a solar system with more than 100kW capacity for your institute, business, or industry, the OPEX modal will be the best option.
You might not want to build your own solar system with millions of investments. Instead of this, buying the electricity produced by the solar system at less prices will be the best alternative. In this way, you don’t have to pay the upfront costs, construction costs, and maintenance costs. There are a lot of investors who will be happy to build a solar plant on your roof (or nearby) and sell you the power through a Power Purchase Agreement (PPA). This model works typically for industrial and commercial solar system consumers and Indian companies have started offering it to residential customers in some cities.
A PPA is a formal agreement between an electricity consumer (in this case, you) and the electricity generator (usually an investor) that specifies the terms and conditions of electricity purchase. Details usually include the length of the PPA (typically 10- 25 years), the price (tariff) for the power from the solar plant, and annual escalations (if any).
How much electricity does a 1MW solar power plant generate in a month?
1MW solar power plant is not a small capacity system, so it is obvious that its generation capacity will be very high. But now the question comes that after all how much electricity can it actually generate. So let’s see some calculations for it.
Since a 1kW solar system generates = 4 units/day
Accordingly, 1MW will generate,
4 units x 1000kW = 4,000 units/day (1MW = 1000kW), & 4,000 units x 30 days = 1,20,000 units/month.
1,20,000 units x 12 months = 14,40,000 units/year.
But the exact generation can be varied according to the types of solar panel you installed, installation location, solar brands, etc.
Income from 1 MW Solar PV Plant
The income from a solar power plant depends on several factors like daily electricity production, your own electricity consumption, government purchase policy & prices, etc. In addition, a 1 megawatt solar power plant can recover its cost within 5 to 7 years (on average).
Particulars
Description
Daily units generated
4000 Units
Yearly units generated
4000×365=14,60,000 units
Govt. pays per unit
3.85 ₹/unit
[According to Central Electricity Regulatory Commission (CERC)]
Total income over the year
₹56,21,000
Net income over the year
₹43,51,000 (Total income – Annual Maintenance Cost)
All the figures shown above are just to provide a rough idea of income from 1MW solar power plant. Don’t consider it as exact income from 1MW solar power plant.
The electricity generation shown above has been taken on an average basis. The exact electricity generation depends on daily sun hours/availability.
The government electricity price per unit varies state to state and may subject to increase and decrease as per government policy.
#5. Project Report for 1MW Solar Plant
We see a huge demand for information regarding the investment model for setting up a 1 MW solar system. We have decided to create a 1 MW estimate series. So here it is:
Particulars
Description
Capacity of Power Plant
1 MW
Generation per Year
14.60 Lakh (On Average)
Degradation 1 to 10 year
0.05%
Degradation 11 to 25 year
0.67%
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
Click to see: 1MW Plant Financial Model
The financial modal of 1MW solar plant for ten years are as below.
(The calculations are in Lakh)
Years
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
Total
Revenue
113.5
113.5
113.4
113.4
113.3
113.2
113.2
113.12
113.1
112.9
1133
Operational Expenses
8
8
8
8
8
8
8
8
8
8
80
Bank Interest Payment
57.1
51.8
46.4
41
35.6
30.2
24.9
19.5
14.1
8.7
330
Depreciation
34.3
34.3
34.3
34.3
34.3
34.3
34.3
34.3
34.3
34.3
343
Total Expense (without AD)
99.4
94.1
88.7
83.3
77.9
72.5
67.2
61.8
56.4
51.0
753
Profit Before Tax (without AD)
14.1
19.4
24.7
30.1
35.4
40.7
46.0
51.2
56.7
61.9
380
Taxation (without AD)
2.7
3.7
4.7
5.7
6.8
7.7
8.7
9.7
10.8
11.8
72
Profit After Tax (Without AD)
11.4
15.7
20.0
24.4
28.6
33.0
37.4
41.5
45.5
50.2
308
Profit After Tax (Without AD)
11.4
15.7
20.0
24.4
28.6
33.0
37.4
41.5
45.5
50.2
308
Depreciation
34.3
34.3
34.3
34.3
34.3
34.3
34.3
34.3
34.3
34.3
343
Bank Debt Service amount
41.37
41.37
41.37
41.37
41.37
41.37
41.37
41.37
41.37
41.37
413
#6. 1MW Solar Plant Balance Sheet
Here is the balance sheet of 1MW solar power plant.
EXPENDITURE
AMOUNT (Rs.)
AMOUNT (Rs.)
Operational Expenses
8,000,000
Bank Interest Payment
33,000,000
Depreciation
34,300,000
Total Expense (without AD)
75,300,000
Profit Before Tax (without AD)
38,000,000
Taxation (without AD)
7,230,000
(Min Alternative Tax 19%)
Profit After Tax (Without AD)
30,770,000
113,300,000
Depreciation
34,300,000
Profit After Tax (Without AD)
30,770,000
Total amount in account
65,070,000
Bank Debt Amount
41,300,000
Balance cash in hand
23,770,000
#7. Solar Power Plant in India
India's Top 10 States with Solar Installation
India is one of the largest power generation portfolios. The demand for clean energy in India is huge and is continuously increasing. Therefore, the Indian government has launched the Jawaharlal Nehru National Solar Mission (JNNSM) on 11 January 2010, which aims to produce 227 GW (Gigawatt) of solar energy by 2022. It is a three-phase mission that aims to install 20,000 MW on-grid solar power plants, 2000 MW off-grid solar power plant including 20 million solar lights, and to create favorable conditions for developing solar manufacturing capability in the country.
#8. MW Power Plant Installations
Solar power in India is one of the most rapidly developing industries. This can be judged from the fact that many large-capacity solar power plants have been already installed in India. Let’s see some of these solar power plants.
Bhadla Solar Park, Rajasthan (2255 MW)
Bhadla Solar Park is a 2055 MW capacity solar power plant located in the Jodhpur district of Rajasthan and spread over a total area of 10,000 acres. It is one of the largest solar parks in India.
Shakti Sthala Pavagada Solar Park, Karnataka (2000 MW)
Shakti Sthala Pavagada Solar Park is situated in Karnataka. It is one of the world’s biggest solar power plants that has spread over 13,000 acres with 2,000 MW of power generation capacity.
Charanka Solar Park, Gujrat (790 MW Approx.)
Charanka Solar Park is the world’s third-largest photovoltaic solar power plant. The park is installed in the Patan district of Gujarat and has a 790 MW capacity.
Kadaladi Power Station, Tamil Nadu (4000 MW)
Kadaladi solar park is a 500MW solar park planned for commissioning in 2019 in the region of Ramanathapuram district and proposed a 4,000 MW power station, built by Tangedco at Naripaiyur village.
Dhirubhai Ambani Solar Park, Rajasthan
Dhirubhai Ambani Solar Park is located near Pokhran in the Jaisalmer district of Rajasthan. This solar power plant is developed by Reliance Industries. It is one of the largest in the state of Rajasthan.
Maharashtra Solar Power Plant (67.2 MW)
Maharashtra Solar Power Plant is situated in the Beed district of Maharashtra. This solar power plant was established in August 2017. This solar power plant has a capacity of 67 MW and is named after the state of Maharashtra.
#9. Scope of Solar Power in India
India is a developing country and its population is increasing day by day. It is expected that India becomes the world’s most populated country by 2022. India provides a positive environment among investors keen to tap into India’s potential. India has a long way to go in the sector of solar energy.
In near future, India will explore new potential areas and ensure the maximum use of solar power get world leadership. The “National Institution of Solar Energy in India” has determined the country’s solar power potential at around 750 GW. India is slowly going to get its dominion in the field of solar power generation due to the ambitious state and center’s solar policies and projects.
Nowadays India starts switching to solar energy that is one of the best financial decisions in today’s world. As we can see the prices of fossil and fuels are increasing day by day so this is a perfect alternative to this problem. Although, India has huge scope in the field of solar energy in near future because solar power for home and industries are a cheap source of clean energy and secondly, it is available widely across the country without any interruption.
In CAPEX (Capital expenditure) model, the installation cost of the solar system will be completely yours. You will have to pay the cost to the Installation Company in one shot. After paying the installation cost, this would be your own solar plant.
OPEX (Operating Expenses) model is also called Power Purchase Agreement. In this model, the Solar System Installation Company will install the complete system at their own cost through an agreement for 10-25 years. And you will have to pay per unit cost on monthly basis.
Both models are good. If you are a cash-rich company, you should go for CAPEX. In case of shortage of investment, the OPEX model is better. Because if you choose the CAPEX model then you will have to pay a heavy amount of money in a single shot. But in the OPEX model, you can pay per unit cost on monthly basis for 10-25 years.
Yes, of course, you can export the excess amount of generated electricity to the government (in the grid) through net metering. And the government will adjust it in your upcoming electricity bills.
You can install 1 MW solar PV plant at any shadow-free area where the sunlight can come without any barrier. For installing 1 MW solar plant 2.5-acre area is required.
A 1-megawatt solar power plant can generate 4,000 units per day as an average. So accordingly it generates 1,20,000 units per month and 14,40,000 units per year.
No, it is not difficult to maintain the efficiency of 1 MW solar plant. By cleaning solar panels from time to time with a solar panel cleaning kit, the efficiency level of solar panels can be maintained easily.
Normally, a 1kW solar plant requires 6 square meter area. Accordingly, if you want to install 1 MW solar PV power plant then 6000 square meters (+ shadow gap) area will be required.