1 MW Solar Power Plant Cost in India
Are you planning a 1 MW solar power plant in India? We provide turnkey solar EPC solutions across India, Here you’ll find everything about 1 MW solar plant cost, profit potential, ROI, land requirements, specifications, and subsidies.
What is a 1 MW Solar Power Plant?
A 1 MW (1 megawatt) solar power plant is a high-capacity solar farm designed to generate about 4,000 kWh per day or 14.4 lakh units annually.
It can power:
- Large industrial plants – textile, cement, steel, automotive
- Commercial complexes – IT parks, malls, cold storage
- Institutions – hospitals, schools, universities
- Utility-scale solar farms supplying power to DISCOMs
We handle projects nationwide, including ground-mounted and rooftop MW-scale installations.
Challenges of Building Private 1 MW On-Grid Solar Power Plants in India
While setting up your own 1 MW on-grid solar power plant may seem profitable, it often proves challenging in practice.
The main issue lies in grid connectivity — the nearest substation is usually several kilometres away, resulting in high cabling expenses and multiple regulatory clearances before commissioning.
Common challenges include:
- Long-distance cable and bay connection cost: ₹45 – ₹70 lakhs additional expense for line laying, protection systems, and bay extension.
- Approval delays: CEIG, DISCOM, and open-access permissions can extend project timelines by several months.
- Evacuation constraints: Many substations lack spare bays for new 11 kV / 33 kV interconnections.
- Regulatory and forecasting compliance: Mandatory ABT metering, scheduling, and energy accounting raise fixed costs.
Hence, most investors today prefer PPA-based shared solar parks offered by EPC providers like Synergy Solar Solutions, which deliver faster commissioning, reliable evacuation, and stable long-term returns without the hassles of private grid connectivity.
Invest in Synergy Solar’s PPA-Based Solar Projects
Skip land, bay, and permits. Join Synergy’s pre-approved, grid-connected solar zones under long-term PPAs.
How it works
- Buy/lease a 1 MW block (or tranche) inside our solar park.
- We handle EPC, approvals, interconnection, O&M, billing.
- Earn passive income from contracted power sales (DISCOM/corporate).
- SCADA dashboards for transparent performance & revenue tracking.
Typical outcome (illustrative):
- Annual units: ~ 14.6 lakh
- Tariff: ~ ₹3.85/unit
- Gross: ~ ₹56 lakh/yr
- O&M: ~ ₹8–10 lakh/yr
- Net: ~ ₹43–45 lakh/yr
- Payback: 6–8 years, ROI: 12–15%
1 MW Off-Grid/Hybrid Plant for Self-Use
For factories, logistics parks, hospitals, campuses, or remote operations, a 1 MW off-grid/hybrid system cuts EB & diesel costs while ensuring reliability.
Best for
- Sites with unreliable or expensive grid
- Mission-critical loads needing backup
- Large campuses aiming for energy independence
Benefits
- 24×7 power with solar battery backup
- Savings-led ROI (no OA charges), faster commissioning (fewer approvals)
- SCADA/IoT monitoring and 25-year design life
That’s why Synergy offers PPA parks for income — or off-grid based on your priority is self-use savings & reliability.
1 MW Solar Power Plant Cost in India (2025)
The cost of setting up a 1 MW solar power plant in India generally ranges from ₹4 to ₹5 crore, varying based on technology, land, and state regulations.
Key factors influencing cost:
- Panel type (mono, poly, or bifacial).
- Mounting system (fixed or tracking).
- Local irradiation levels and grid infrastructure.
- Civil and installation costs.
Breakdown of 1 MW Solar Project Cost (Illustrative):
| 1 MW Solar Farm Investment Description | Estimated Cost / Price |
| 1 MW Solar Panels | 3 Crores |
| 1 MW Solar Inverter | 1 Crore |
| Combiners + Junction Boxes | 22 Lakhs |
| Safety Gear & Protection Systems | 11 Lakhs |
| SCADA & Data Logger System | 8 Lakhs |
| 1 MW solar power plant land requirement | 5 Acre(area required for 1mw solar plant) |
| Civil Work & Erection Cost of 1 MW | 50 Lakh |
| Total Project Cost of 1 MW Solar Farm | 4.9 Cr. (Approx.) |
Note: The above figures are for illustration purpose only and represents an estimated idea of what the cost might be. The accurate One MegaWatt solar power plant cost and profit require an on-site solar assessment and a personalized quote from Our professional solar company.
Land Requirement for a 1 MW Solar Power Plant
Setting up a 1 MW ground-mounted solar plant typically requires around 4 to 5 acres of shadow-free land with good solar exposure. However, the exact land requirement can vary based on several technical and site-related factors.
Key factors that influence the land area needed:
- Panel Efficiency: High-efficiency monocrystalline panels require less space compared to polycrystalline modules, reducing the overall land footprint.
- Mounting System: Single-axis or dual-axis tracking systems enhance energy yield but require slightly more space than fixed-tilt mounting structures.
- Site Topography: Flat and obstruction-free land minimizes civil work and reduces overall project costs. Uneven terrain may increase grading and installation expenses.
- Shading & Orientation: Adequate spacing between panel rows is essential to avoid shading and maintain optimal tilt angles.
Our team provides end-to-end support including land identification, feasibility studies, shadow analysis, and all necessary regulatory approvals. We have extensive experience in implementing MW-scale projects across Tamil Nadu, Kerala, Karnataka, Rajasthan, Gujarat, Maharashtra, and other solar-friendly states in India.
How Many Units Does a 1 MW Solar Plant Produce?
A properly designed 1 MW solar plant generates approximately:
~4,000 kWh per day
~1,20,000 kWh per month
~14,40,000 kWh per year
Actual generation varies by geographical location, panel type, and maintenance quality. For example:
Rajasthan/Gujarat: Higher annual yield due to better solar irradiance.
Kerala/TN: Slightly lower yield but higher grid-stability benefits.
ROI, Profit & Payback Period for 1 MW Solar Project
A 1 MW plant has a payback period of ~6–8 years with annual net profit of ₹40–45 lakh, depending on tariffs and maintenance.
Sample Income Projection:
- Annual Output: 14.6 lakh units
- Govt. Tariff (CERC average): ₹3.85/unit
- Gross Revenue: ₹56 Lakh/year
- O&M Cost: ₹8–10 Lakh/year
- Net Revenue: ₹43–45 Lakh/year
After 6–8 years, energy is virtually free for the remaining 17–19 years.
1 MW Solar Power Plant Project Report – Estimated Financials & Performance
To help businesses and investors understand the potential of a 1 MW solar project, here is an illustrative project report with financial and technical assumptions. These values vary depending on your location, tariff, and financing model, but they offer a realistic view of the system’s long-term performance.
| 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) | 13.00% |
| 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 |
1mw Financing & Investment Models (CAPEX & OPEX)
We provide flexible financial structures:
- CAPEX (Ownership Model): One-time investment; you own the plant and energy output.
- OPEX/PPA Model: Zero upfront cost; pay per-unit consumed at rates lower than grid tariff.
We also assist with bank loans, subsidies, and third-party financing to optimize your cash flow.
Government Subsidies & Approvals
- Net-metering approvals as per state DISCOM policies.
- MNRE and state-level subsidies for eligible industries.
- Support with CEIG approvals, tax benefits, and carbon credit facilitation.
Why Choose Us for Your 1 MW Solar Project?
- Pan-India Service: We handle projects across India with strong teams in Tamil Nadu, Kerala, Karnataka, Maharashtra, Telangana, Gujarat, and Rajasthan.
- End-to-End Solutions: From design and installation to approvals, financing, and maintenance – we manage everything.
- High-Quality Components: We use only reliable, high-efficiency solar panels and inverters for better performance and ROI.
- Proven Expertise: Years of experience delivering MW-scale solar projects for industries and businesses.
- Complete Support: Assistance with land assessment, government subsidies, net-metering, and bank loans.
Frequently Asked Questions About 1 MW Solar Power Plant
1: What is the cost of a 1 MW solar power plant in India (2025)?
₹4–5 crore depending on state, land and technology.
2: How many units does a 1 MW solar power plant produce per day?
Around 4,000 kWh/day or 14.4 lakh units annually.
3.Is it difficult to operate and maintain a big power plant of 1-megawatt capacity?
Operating and maintaining your 1MW solar power plant is easier than you think. Solar panels require a basic cleaning routine and use a simple cleaning kit. Keeping your solar panels’ surface free of any accumulation is important to maintain their efficiency levels.
4.How many solar panels Array make up a 1MW solar power plant?
Determining the number of solar panels / Array your solar plant requires is important to figure out the 1-acre solar farm cost in India and the area required to install it. If you go for high-quality solar panels of around 400 watts each, your solar plant will require approximately 2500 panels.
5.How long do solar panels last?
Solar PV modules are the main component in all types and sizes of solar power plants. Most manufacturers provide a performance warranty of 25 years. In most cases, these solar panels continue to generate power for post the warranty period, however, at a reduced capacity level.
6.1 mw solar power plant cost and profit
The cost of establishing a 1 MW solar power plant in India typically ranges between ₹4.5 to ₹6 crore, depending on factors such as equipment quality, installation charges, and location.A 1 MW solar power plant can generate an annual revenue of around ₹1.5 to ₹1.7 crore, with profits influenced by factors like efficiency, electricity tariffs, and operational costs.
7. Can I install a 1 MW solar plant on my own land?
Yes, but it’s viable only if your land is close to a 33 kV substation. For remote locations, high cabling and approval costs make PPA-based shared solar parks a smarter option.
Looking for Larger Solar Installations?
Scale Up with 2 MW & 3 MW Solar Plants
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