A solar power plant with a 1MW capacity or more is known as a “Ground Mounted Solar Power Plant,” “Solar Power Station,” or “Energy Generating Station.” These robust solar power systems produce substantial electricity, often exceeding the needs of a single company, and can even be sold to the government.
According to the latest guidelines from the Government of India (MNRE), anyone can generate electricity through a solar power system and export surplus electricity through the net metering system. Individuals and organizations can now set up solar power plants with capacities ranging from 1KW to 1MW on their land or rooftops. The Ministry of New and Renewable Energy (MNRE) and state nodal agencies provide 20%-70% subsidies on solar installations for residential, institutional, and non-profit organizations to promote these green energy sources.
State electricity boards and distribution companies will assist you throughout the entire process of setting up a solar power system. These incentives and schemes are designed to boost solar energy generation in India and encourage the adoption of renewable energy solutions.
In a developing country like India, electricity consumption is continuously increasing, while production remains limited. Additionally, the lack of sufficient resources to store large amounts of energy underscores the importance of investing in solar power systems. Installing a solar power plant is a wise decision to meet the growing energy demands.
1MW Solar Power Plant Overview
Power Generation: 4000 kWh Units/Day
Average Cost: INR 4 to 5 Crore (Exclusive of all taxes)
Annual Savings: Approximately 1 Crore
Area Required: 4 to 5 Acres
Types of Solar Power Plants
Solar power plants operate on the fundamental principle of the “Photovoltaic Effect” and typically comprise solar panels, a solar inverter, and solar batteries. Here are the three main types of solar power systems:
On-Grid Solar System - Saving + Grid Export
Off-Grid Solar System - Saving + Backup
Hybrid Solar System – On-grid + Off-grid
On-Grid Solar Power Plant
On-grid solar power plants are ideal for large institutions, commercial enterprises, and industrial sectors, as they have no load limitations. This type of solar energy system is directly connected to the grid, enabling it to power your home appliances or any connected load using solar power. If the demand exceeds the capacity of your installed solar panels, the system seamlessly draws additional electricity from the main grid. Conversely, if your solar panels generate more power than needed, the excess energy is fed back into the grid, helping to reduce your electricity bills. This system is particularly effective for those looking to lower their energy costs by leveraging renewable green energy.
Off-Grid Solar Power Plant
Off-grid solar power plants are ideal for homes and residential areas that experience frequent and prolonged power outages. These battery-based solar energy systems include solar panels, a solar inverter, and a solar battery. Designed to keep your home running smoothly, the system powers your appliances and connected load (based on the capacity of the solar inverter) using renewable solar energy. Any surplus power generated is stored in the solar battery bank for later use. This type of solar installation is highly recommended for areas where power reliability is a significant issue, offering a sustainable and green energy solution.
Hybrid Solar Power Plant
Hybrid solar power plants offer a versatile solution for both residential and commercial applications, adapting their components and capacity based on specific installation needs. These systems integrate the benefits of both on-grid and off-grid solar energy systems. A hybrid solar installation connects to the main electricity grid, ensuring continuous power supply, while simultaneously linking to solar batteries. This setup not only utilizes solar power efficiently but also provides backup during outages, making it a comprehensive renewable energy solution for those seeking reliable and sustainable energy with enhanced solar efficiency.
1MW Solar Power Plant Design
1MW solar power system can be tailored to meet specific energy needs, offering flexibility in its design. This customization allows adjustments to the system configuration in consultation with solar experts, ensuring optimal solar efficiency. Below is a general outline of a 1MW solar energy system, highlighting the essential components required to set up such a solar installation.
High-quality solar components are crucial to achieving an efficient and reliable solar energy system. To establish a 1MW solar power plant, the following components are typically required. The quantities can be adjusted based on the power ratings and specific needs of the solar power system.
Components
Specification
Quantity
Solar PV Module
Mono or Mono PERC (400 Watt)
2,500 Nos.
Solar Inverters
With MPPT Technology (1MW)
1
SCADA/Monitoring System
Integrated with Remote Monitoring system web based
1
Protection Devices
SPD, MCB, DC Fuse, etc.
As per design or requirement
Cables
DC Side= 10 mm2, AC Side=LT: 16mm2 & HT: 185mm2
As per Distance & Gap
Solar Structure
Ground Mounted
1 MW Standard
* We have used 400 watt solar panel and 1MW solar inverter for the calculation.
1MW Solar Plant Cost
The investment in solar energy systems has evolved, with increasing support from the government for renewable energy projects. Installing a 1MW solar power system now requires an investment of approximately INR 4-5 crore. This setup allows you to supply green energy to the grid for over 25 years. Below is a detailed breakdown of the costs associated with installing a 1MW solar power plant, helping you evaluate and analyze the expenses for solar panels, inverters, and other essential components.
Particulars
Estimated Cost
Solar Panels
3 Cr.
Solar Inverters
1 Cr.
Combiners + Junction Boxes
20 Lakh
Protective Gears Arrangemente
10 Lakh
SCADA & Data Logger System
7 Lakh
Land Bank
*5 Acre
Erection of Project
50 Lakh
Total Project Cost
4.87 Cr. (Approx.)
* 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.
Types of Investment Models
When considering an investment in a solar power system for your home, business, institute, or industrial facility, you have two primary investment models to choose from:
CAPEX model and the OPEX or PPA model
CAPEX Model (One Time Investment)
In the CAPEX model, you bear the capital expenditure for the entire solar power system upfront. This means you pay the full cost of solar panel installation, solar inverters, and other components directly to the installation company. Once the system is set up, you own it completely and will benefit from free solar energy for over 25 years. This model is ideal if you’re looking to install a solar system with a capacity of 100kW or less, whether for your home or business. It’s a straightforward investment that provides long-term savings and energy independence.
OPEX Model (Power Purchase Agreement - PPA)
Alternatively, the OPEX model involves only operating expenditures. Under a Power Purchase Agreement (PPA), the solar system installation company finances the entire setup at its expense. You then enter into a contract to purchase the electricity generated by the system at a rate lower than the regular grid price. The PPA typically spans 10 to 25 years, with rates ranging from Rs.3 to Rs.7 per unit, depending on the system size, PPA term, and credit rating.
If you prefer to own the solar system outright and are prepared for a substantial initial investment, the CAPEX model may be the right choice. If you want to avoid upfront costs and enjoy lower energy rates without managing the system, the OPEX model with a PPA could be more suitable.
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?
A 1MW solar power plant is a substantial solar energy system, designed to produce a significant amount of electricity. Here’s a breakdown of its potential output and income generation.
A 1kW solar power system typically generates approximately 4 units of electricity per day.
Therefore, a 1MW system, which is equivalent to 1000kW, would generate: 4 units/day × 1000 kW=4000 units/day
Over a month (30 days), the total generation would be: 4000 units/day×30 days=120,000 units/month
Annually, this translates to 120,000 units/month×12 months=1,440,000 units/year
The actual electricity output may vary depending on factors such as the quality and efficiency of the solar panels, the installation location, and the specific solar brands used.
On average, a 1MW solar power plant can recover its initial investment within 5 to 7 years. This recovery period depends on factors like the cost of solar panel installation, the local solar energy market, and the efficiency of the solar power system. Investing in a 1MW solar power plant not only contributes to renewable energy and green energy goals but also offers significant potential for income generation and long-term savings on energy costs.
Particulars
Estimated Cost
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)
* The figures presented are intended to offer a general estimate of the income from a 1MW solar power plant and should not be considered as precise income projections.
* The estimated electricity generation is based on average conditions; actual output may vary depending on the specific daily sunlight hours and availability.
* The cost of electricity from the grid can differ by state and may fluctuate according to changes in government policies.
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
The Financial Model 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
6.7
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
Bank Debt Services amount
41.37
41.37
41.37
41.37
41.37
41.37
41.37
41.37
41.37
41.37
413
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 Expenses (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
Total
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
Solar Power Initiatives in India
India is a major player in the global energy landscape with a substantial focus on expanding its clean energy capacity. The demand for renewable energy, particularly solar power, is on the rise across the country. To meet this growing need, the Indian government launched the Jawaharlal Nehru National Solar Mission (JNNSM) on January 11, 2010. This ambitious initiative aims to generate 227 GW (Gigawatts) of solar energy by 2022.
