Key Summary

Rising electricity prices, increasing demand for energy, and a strong push for sustainable solutions have made solar energy one of the best long-term sustainable energy sources available in India today. One of the best investments businesses, industries, and institutional investors can make is a 1 MW Solar Plant. Not only do they save businesses, industries, and institutional investors considerable money, but they also generate clean energy, providing a tremendous opportunity for businesses and organizations to contribute toward India’s renewable energy and Carbon Reduction goals.

The 1 MW solar generation facility, frequently deployed in industrial and commercial applications of renewable energy through the use of Photovoltaic (PV) panels to generate electricity from the Sun, produces renewable electricity from a combination of solar energy and conventional energy. The footprint of a typical 1 MW solar power generation facility consists of about 4–5 acres and has the capability of producing up to 4,000 kWh of electricity each day, which is sufficient to meet a majority of the energy needs of high-demand users while at the same time decreasing their dependence on traditional grid-based kraft electricity generation facilities.

A 1 MW solar power plant is best suited for individuals and organizations looking for long-term, stable, and sustainable returns. Ideal investors include:

The 1 MW solar generation facility, frequently deployed in industrial and commercial applications of renewable energy through the use of Photovoltaic (PV) panels to generate electricity from the Sun, produces renewable electricity from a combination of solar energy and conventional energy. The footprint of a typical 1 MW solar power generation facility consists of about 4–5 acres and has the capability of producing up to 4,000 kWh of electricity each day, which is sufficient to meet a majority of the energy needs of high-demand users while at the same time decreasing their dependence on traditional grid-based kraft electricity generation facilities.

A 1 MW solar power plant is best suited for individuals and organizations looking for long-term, stable, and sustainable returns. Ideal investors include:

In short, a 1 MW solar plant is ideal for investors who have a long-term vision, access to land or capital, and a need for reliable, cost-effective, and clean power.

The cost of setting up a 1 MW solar power plant in India generally falls between ₹4 crore and ₹6 crore, depending on factors such as location, technology, equipment quality, and project execution. Below is an indicative cost breakup to help understand the investment structure:

Estimated Cost Breakdown:

Technical Specifications

A 1 MW solar power plant in India typically requires around 4–5 acres of land. The exact land requirement depends on several factors, such as the type of solar panels used, their efficiency, tilt angle, row spacing, and the overall plant layout.

Higher-efficiency panels can slightly reduce land usage, while tracking systems or lower-efficiency modules may require additional space. Beyond size, the location and availability of land play a crucial role in overall project cost. Land closer to grid infrastructure and with minimal leveling needs helps lower civil and evacuation expenses, improving the project’s financial viability.

When setting up a 1 MW solar power plant in India, grid connection and regulatory approvals are important cost components that must be planned for before commissioning. These costs can vary widely based on how far the plant site is from the nearest substation, the voltage level of connection, and the local utility/discom policies.

Substation and Transmission Cost

To evacuate power from your solar plant to the grid, the project usually needs to build a transmission line and bay extension up to the nearest substation. If the substation is several kilometres away, the cabling, protection systems, and bay connection costs can range from roughly ₹30 lakh to ₹70 lakh or more for a 1 MW plant. Long-distance lines and additional switches or transformers increase this expense.

Grid Connectivity Charges

Connecting the solar plant to the local grid requires coordination with the state transmission utility (STU) or central transmission utility (CTU) and the local DISCOM. Charges typically include:

• Bay charges at the receiving substation
• System strengthening or network upgrade fees
• Protection, metering, and synchronization costs

These charges vary state by state and are often determined by the regulator (SERC) and local utility policies. They become part of the grid-connection agreement and must be settled before synchronization.

Approval and Permit Expenses

Before commissioning, several regulatory permissions and technical clearances are required:

• Connection agreement with the DISCOM
• CEIG (Chief Electrical Inspector to Government) inspection
• Technical feasibility and grid impact assessments
• Open access or wheeling approvals (if selling power outside the DISCOM area)

Approval processes can incur fees and require submission of detailed documentation. Delays in approval also add indirect costs through project timeline extensions. These permitting costs can vary significantly and should be estimated early in project planning.

A 1 MW (megawatt) solar power plant generates electricity in kilowatt-hours (kWh). The actual output depends on solar irradiance, location, weather conditions, system efficiency, orientation, and overall losses.

Basic Calculation Method

• Installed capacity: 1 MW = 1,000 kW
• Energy generation (kWh) = Capacity (kW) × Peak sun hours × Performance factor
• Typical performance factor: 0.75–0.90 (commonly 0.80, accounting for inverter, temperature, dust, wiring, and shading losses)

Typical performance factor: 0.75 to 0.90 (typically 0.80 for losses due to the inverter, temperatures, dust

Average Peak Sun Hours in India

• High irradiance regions (Rajasthan, Gujarat):
• Good solar zones (Maharashtra, Telangana, MP): 4
• Moderate Sun areas: between 3.5 and

Calculating Estimated Power Generation

• Daily generation: 4,000 to 4,800
• Average Monthly Production: 1.2-1.4 lakh kWh
• Generation per year: 14.4 to 17.3 units (lakh units

These data render the 1 MW solar energy plant a feasible choice for bulk electricity production in India, particularly in areas with high solar intensity.

An investment in a 1 MW solar power plant offers strong financial returns, making it a highly viable option for businesses and large power consumers.

With predictable energy generation, low operating costs, and long-term asset life, a 1 MW solar plant provides consistent returns while helping enterprises reduce energy expenses and carbon footprint.

Yes, 1 MW solar power plant is generally regarded as a profitable investment opportunity for India. It presents a remarkable payback period of 3-6 years, long-term power autonomy, and major green benefits. Since it requires a fund outlay of around ₹4-6 crores, major power consumers like manufacturing units, hospitals, and business centers can derive considerable economic benefits by mitigating high rates of grid power consumption, which usually vary between ₹8-12 per unit. However, apart from these economic advantages, it develops long-term economic management benefits.