500 kW Solar Farm in India – Cost, Land Requirement, Subsidy & ROI

Synergy Solar, we are an MNRE-approved EPC company and trusted solar farm developer across India. If you are looking for a large-scale solar power project, a 500 kW solar farm is one of the most efficient and profitable investment opportunities.
A 500 kW solar farm can generate enough electricity to power 200–250 urban homes or supply energy for commercial, agricultural, or industrial applications, making it a popular choice for investors, businesses, and institutions.
With attractive government subsidies, net metering policies, and high ROI potential, a 500 kW solar farm is a smart step towards green energy and sustainable income generation.

Who Should Invest in a 500 kW Solar Farm?
A 500 kW solar project is best suited for:
Businesses and industries with high energy consumption
Investors seeking long-term returns from renewable energy
Farmers, institutions, and housing societies with large land availability
Companies adopting green energy to reduce carbon footprint
Entrepreneurs looking for solar power plant investment opportunities
Benefits of a 500 kW Solar Farm
Low Maintenance
Minimal service required beyond cleaning and routine inspections.
Sustainable Income
Earn steady revenue by selling surplus power to the grid.
Government Subsidy & Incentives
Reduces upfront investment costs.
Eco-Friendly
Reduces 700–800 tons of CO₂ emissions annually (equal to planting 50,000+ trees).
Strong ROI
Annual savings/income of ₹6.5 – ₹8 crore over 25 years.
High Energy Generation
Produces 2,000–2,500 units per day (approx. 7.5–9 lakh units annually).

Cost of a 500 kW Solar Farm in India
The 500 kW solar farm price depends on the system type:
System Type |
Price Range |
Best For |
On-Grid | ₹2.1 – ₹2.8 crore |
Investors with reliable grid power & net metering |
Off-Grid | ₹2.8 – ₹3.5 crore |
Areas with frequent power cuts & no grid support |
Hybrid | ₹3.2 – ₹3.9 crore | Businesses needing both grid & battery backup |
With government subsidies, the net cost reduces significantly, making solar farms more affordable for investors.
Technical Specifications of a 500 kW Solar Farm
Specification | Details |
System Size |
500 kW |
Solar Panels |
1,100–1,300 modules (400–450 W each) |
Inverter |
500 kW Grid-tie / Hybrid |
Daily Output |
2,000–2,500 units |
Annual Output |
7.2–9 lakh units |
Land Area |
2.5–3 acres |
Lifespan | 25+ years (panels) |
500 kiloWatt Solar Farm Energy Generation & Savings
A well-designed 500 kW solar farm in India generates:
- Daily Output: 2,000 – 2,500 units (kWh)
- Monthly Output: 60,000 – 75,000 units
- Annual Output: 7,20,000 – 9,00,000 units
Financial Impact:
- Annual Revenue/Savings: ₹50 – ₹70 lakh (based on tariff ₹7–₹8/unit)
- Carbon Offset: 700–800 tons CO₂ annually
- Lifetime Value (25 years): ₹12 – ₹15 crore
Government Subsidy for 500 kW Solar Farm in India
Under the PM Surya Ghar & MNRE schemes, subsidies are available for solar projects, though mainly for residential/commercial rooftop. For large-scale solar farms, state-level incentives and PPAs (Power Purchase Agreements) apply.
- Capital Subsidy (select states): 20–30%
- Accelerated Depreciation Benefits: Up to 40% in the first year
- GST Benefits & Tax Savings: Significant reduction in project cost
- Net Metering & PPA Revenue: Earn by selling surplus electricity to DISCOMs or private buyers
A 500 kW solar farm subsidy can save investors ₹40–60 lakh in upfront costs.
Payback Period & ROI of 500 kW Solar Farm
- Initial Investment (after subsidy): ₹2 – ₹2.5 crore
- Annual Savings/Revenue: ₹50 – ₹70 lakh
- Payback Period: 4 – 5 years
- ROI (25 years): 6 – 8× return on investment
Installation Process of a 500 kW Solar Farm
- Site Survey – Land feasibility, soil testing, and shadow analysis
- Design & Engineering – Plant layout, electrical design, and approvals
- Government Approvals – DISCOM, subsidy, and net metering applications
- Installation – Mounting panels, wiring, inverter setup, transformers
- Testing & Commissioning – Final performance checks
- O&M (Operation & Maintenance) – Regular cleaning and service
Why Choose Synergy Solar for Your 500 kW Solar Farm?
MNRE-approved EPC company with 1000+ MW installations
End-to-end solutions – land survey, design, installation, subsidy support
Proven expertise in large-scale solar farm projects
Transparent pricing & AMC service for long-term reliability
Use of BIS-certified panels & inverters with long-term warranties
FAQs on 500 kW Solar Farm in India
How much land is required for a 500 kW solar farm?
Around 2.5–3 acres of shadow-free land.
What is the cost of a 500 kW solar farm in India?
₹2.5 – ₹3.5 crore depending on system type and subsidy.
How much electricity does a 500 kW solar plant generate daily?
Around 2,000–2,500 units (kWh).
What is the payback period for a 500 kW solar farm?
4–5 years, with 20+ years of free electricity after that.
Can I sell power from my 500 kW solar farm?
Yes, through net metering or PPAs with DISCOMs and private buyers.
What is the maintenance cost of a 400 kW solar plant?
Very low — mainly panel cleaning & annual service checks. AMC packages are available.
Is subsidy available for a 400 kW solar plant?
Subsidies are available under certain government schemes (state & central) for eligible rooftop/commercial projects.