MW Power Plant
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.
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.
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.
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.
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 |
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.
Particulars | Estimated Cost |
3 Cr. | |
1 Cr. | |
Combiners + Junction Boxes | 20 Lakh |
Protective Gears Arrangement | 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.
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.
#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.
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 |