India’s commercial and utility-scale solar sector is expanding rapidly as industries, developers, and investors shift toward renewable energy solutions. Among large-scale installations, the 1 MW solar power plant is one of the most commercially viable project sizes.
Businesses are increasingly exploring ground-mounted solar projects to reduce operational energy costs, improve sustainability credentials, and generate long-term financial returns. This guide explains the cost, land requirements, ROI, and key factors involved in setting up a 1 MW solar power plant in India.
Understanding a 1 MW Solar Power Plant
A 1 megawatt (MW) solar power plant is a commercial-scale solar installation capable of generating approximately 14–17 lakh units (kWh) of electricity annually, depending on location, solar irradiation, and system efficiency.
This capacity is suitable for:
- Industrial and manufacturing units
- Commercial facilities and business parks
- Institutional campuses
- Captive power consumption
- Independent power generation and grid supply
Ground-mounted solar plants are widely preferred for projects of this scale due to their ease of installation, scalability, and cost efficiency.
1 MW Solar Power Plant Cost in India
The cost of installing a 1 MW solar power plant in India typically ranges between:
₹3.5 crore to ₹6 crore
The final project cost depends on multiple factors such as module technology, site location, mounting structures, and infrastructure requirements.
Typical Cost Distribution
| Component | Estimated Cost Share |
|---|---|
| Solar Panels (Modules) | 45% – 55% |
| Inverters and Electrical Equipment | 10% – 15% |
| Mounting Structures and Cabling | 10% – 15% |
| Civil Work and Installation | 10% – 15% |
| Monitoring Systems and SCADA | 2% – 5% |
Ground-mounted solar systems often provide better cost optimization compared to rooftop installations because of simplified structural design and efficient plant layout.
Land Requirement for a 1 MW Solar Plant
A standard 1 MW ground-mounted solar power plant generally requires:
4 to 5 acres of shadow-free land
Key site considerations include:
- Flat or slightly sloped terrain
- Minimal shading from nearby structures or vegetation
- Accessibility for construction and maintenance
- Proximity to grid connectivity
Regions in western and southern India, including Gujarat, Maharashtra, Karnataka, and Rajasthan, offer high solar irradiation levels, which improve overall power generation and plant efficiency.
Energy Generation and Revenue Potential
Estimated Power Generation
A 1 MW solar power plant can generate:
- Annual Generation: 14,40,000 to 17,28,000 units
- Monthly Generation: 1,20,000 to 1,44,000 units
- Daily Generation: Approximately 4,000 to 4,800 units
Actual output depends on location, panel efficiency, system design, and maintenance quality.
Revenue and Payback Period
Electricity generated from commercial solar plants can be consumed internally or exported to the grid. The average commercial tariff in India ranges between:
₹3 to ₹5 per unit, depending on state policies and power purchase agreements.
With current installation costs and electricity tariffs, most commercial solar plants achieve a payback period of 5 to 8 years, followed by more than 15 years of low-cost power generation.
Key Factors Influencing Solar Power Plant Cost
Solar Irradiation Levels
Locations with higher sunlight exposure generate more electricity, resulting in improved project profitability. Western India, particularly Gujarat and Rajasthan, records some of the highest solar generation levels in the country.
Solar Panel Technology
Technology selection plays a major role in performance and cost.
- Monocrystalline Panels: Higher efficiency and better performance in limited space
- Bifacial Modules: Improved generation by capturing reflected sunlight
Mounting Structure and Tracking Systems
Fixed mounting structures are widely used due to lower installation costs. However, advanced tracking systems can increase power generation by 10–15%, depending on project economics.
Site Infrastructure and Grid Connectivity
Transmission infrastructure, land development, and connectivity to substations can influence the overall project cost and timeline.
Why Commercial Solar Projects Are Growing in India
India is aggressively expanding renewable energy capacity to meet sustainability goals and reduce dependence on conventional energy sources. Several factors are driving growth in commercial solar adoption:
- Strong government renewable energy targets
- Favorable policies and reduced GST on solar components
- Rising industrial electricity tariffs
- Increasing demand for sustainable and carbon-neutral operations
These factors make commercial solar projects one of the most attractive long-term energy investments for businesses.
Supporting Large-Scale Ground-Mounted Solar Projects
APS Green is committed to accelerating India’s transition toward clean and reliable solar energy through large-scale ground-mounted solar project development.
Our Capabilities
Comprehensive EPC Services
APS Green provides end-to-end project execution, including site assessment, engineering design, procurement, installation, and commissioning.
Optimized Ground-Mounted Solar Solutions
Projects are designed to maximize land utilization, energy output, and long-term system reliability.
High-Performance Components
APS Green focuses on advanced solar modules, reliable inverter technology, and robust mounting structures to ensure consistent plant performance.
ROI-Focused Project Planning
Each project is customized to deliver maximum energy yield, faster payback, and sustainable long-term returns.
Regulatory and Compliance Support
APS Green assists with policy approvals, grid connectivity, and regulatory compliance to ensure smooth project implementation.
Is a 1 MW Solar Power Plant a Smart Investment?
A commercial solar plant of this scale offers several advantages:
- Reduced operational electricity costs
- Long-term energy price stability
- Attractive return on investment
- Contribution toward sustainability and ESG goals
- Energy independence for industrial and commercial operations
With the continuous improvement in solar technology and strong policy support, commercial solar investments are becoming increasingly viable across India.
The demand for 1 MW solar power plants and commercial solar installations in India is growing steadily as industries and investors recognize the financial and environmental advantages of renewable energy.
Ground-mounted solar projects provide scalability, efficiency, and long-term profitability, making them one of the most reliable energy investments available today. With expert engineering, reliable technology, and efficient project execution, APS Green is helping businesses and developers transition confidently toward sustainable solar power solutions. Click here to contact us now.
