solar power plant cost in India depends on project size, location, and technology used. Whether you are planning a small 100 kW system or a large 10 MW solar farm, understanding the cost and financing options is essential before starting your project. If you are looking for funding, you can explore loan for solar power plant options to finance your project efficiently.
In this guide, we cover solar power plant cost for different capacities, cost breakup, revenue models, and how to finance your solar project.
What is the cost of a solar power plant in India from 100 kW to 500 MW?
Below is an approximate cost comparison for different solar plant capacities:
| Capacity | Estimated Cost | Land Requirement | Monthly Units | Annual Units | Monthly Income | Annual Income |
|---|---|---|---|---|---|---|
| 100 kW | ₹40 lakh – ₹60 lakh | 0.5 – 1 acre | 12,000 units | 1,44,000 units | ₹36,000 – ₹40,000 | ₹4.3 lakh – ₹5 lakh |
| 500 kW | ₹2 crore – ₹2.5 crore | 2 – 3 acres | 60,000 units | 7,20,000 units | ₹1.8 lakh – ₹2.2 lakh | ₹22 lakh – ₹27 lakh |
| 1 MW | ₹3.5 crore – ₹5 crore | 4 – 5 acres | 1,20,000 units | 14,40,000 units | ₹4 lakh – ₹5 lakh | ₹50 lakh – ₹60 lakh |
| 2 MW | ₹7 crore – ₹10 crore | 8 – 10 acres | 2,40,000 units | 28,80,000 units | ₹8 lakh – ₹10 lakh | ₹1 crore – ₹1.2 crore |
| 2.5 MW | ₹8.75 crore – ₹12.5 crore | 10 – 12.5 acres | 3,00,000 units | 36,00,000 units | ₹10 lakh – ₹12.5 lakh | ₹1.25 crore – ₹1.5 crore |
| 5 MW | ₹17.5 crore – ₹25 crore | 20 – 25 acres | 6,00,000 units | 72,00,000 units | ₹20 lakh – ₹25 lakh | ₹2.5 crore – ₹3 crore |
10 MW | ₹35 crore – ₹45 crore | 40 – 50 acres | 12,00,000 units | 1,44,00,000 units | ₹40 lakh – ₹50 lakh | ₹5 crore – ₹6 crore |
| 20 MW | ₹70 crore – ₹90 crore | 80 – 100 acres | 24,00,000 units | 2,88,00,000 units | ₹80 lakh – ₹1 crore | ₹10 crore – ₹12 crore |
| 30 MW | ₹100 crore – ₹135 crore | 120 – 150 acres | 36,00,000 units | 4,32,00,000 units | ₹1.2 crore – ₹1.5 crore | ₹15 crore – ₹18 crore |
| 40 MW | ₹120 crore – ₹160 crore | 160 – 200 acres | 48,00,000 units | 5,76,00,000 units | ₹1.6 crore – ₹2 crore | ₹20 crore – ₹24 crore |
| 50 MW | ₹150 crore – ₹200 crore | 200 – 250 acres | 60,00,000 units | 7,20,00,000 units | ₹2 crore – ₹2.5 crore | ₹25 crore – ₹30 crore |
| 100 MW | ₹300 crore – ₹400 crore | 400 – 500 acres | 1,20,00,000 units | 14,40,00,000 units | ₹3.6 crore – ₹4.5 crore | ₹43 crore – ₹54 crore |
| 500 MW | ₹1,750 crore – ₹2,250 crore | 2,000 – 2,500 acres | 6,00,00,000 units | 72,00,00,000 units | ₹18 crore – ₹22.5 crore | ₹216 crore – ₹270 crore |
Note: Calculations are based on an average solar power tariff of ₹3 per unit and may vary depending on location, solar irradiation, and PPA terms, EPC contractor, module, technology, and transmission infrastructure
.
Note: Solar power plant Revenue is calculated based on ₹3 – ₹5 per unit tariff under PPA/open access models. Actual returns may vary depending on location, CUF (Capacity Utilization Factor), and power agreements.
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Check Solar CalculatorSolar Power Plant Cost Breakup (Per MW)
The total project cost includes several components such as equipment, installation, and infrastructure:
| Component | Estimated Cost | Percentage |
|---|---|---|
| Solar Panels | ₹1.8 Cr – ₹2.2 Cr | 45% – 50% |
| Inverters | ₹30L – ₹40L | 8% – 10% |
| Mounting Structure | ₹40L – ₹50L | 10% – 12% |
| Civil & Installation | ₹40L – ₹60L | 10% – 12% |
| Grid Connectivity | ₹30L – ₹50L | 8% – 10% |
| Other Costs | ₹30L – ₹40L | 8% – 10% |
Total Cost (1 MW): ₹4 crore – ₹5 crore
Revenue & Investment Models for Solar Power Plants
Before investing, it is important to choose the right model based on your budget and risk appetite.
| Model | Investment | Ownership | Revenue Source |
|---|---|---|---|
| CAPEX (Ownership) | 100% investment or 20%–30% equity + solar loan | You own the solar plant | Sell power or save electricity costs |
| Group Captive | Minimum 26% equity | Joint ownership | No cross-subsidy charges, high savings |
| Open Access | No investment | Developer owned | Buy power at lower tariff |
| PM-KUSUM Solar Scheme | Varies | Farmer/developer | Sell power to DISCOM at fixed tariff |
How Solar Power Plant Generates Income
A solar power plant generates income through multiple revenue streams depending on the project structure and usage model.
- Power Sale (PPA): Sell electricity to DISCOMs or private buyers under long-term agreements
- Captive Use: Save electricity costs for your own business or industry
- Group Captive Model: Supply power to industries and reduce power costs
- Land Leasing: Lease land to solar developers for fixed annual income
How Much Electricity a Solar Plant Generates & How Much You Earn
The income from a solar power plant depends on electricity generation (units) and the tariff (per unit rate) under a PPA or open access model.
Electricity Generation (1 MW Solar Plant)
- Per Day: 3,800 to 4,500 units
- Per Month: 1.1 lakh to 1.3 lakh units
- Per Year: 14 lakh to 16 lakh units
Per Unit Electricity Rate (Tariff)
- Typical Tariff: ₹2.50 to ₹3.00 per unit
How much a 1 MW Solar Plant Income Generate?
- Annual Solar Income: ₹35 lakh to ₹48 lakh
- Monthly Solar Income: ₹3 lakh to ₹4 lakh
Key Factors Affecting Income
- Solar PPA agreement and tariff rate
- Type and efficiency of solar panels
- Location and sunlight availability
- Plant performance and maintenance
Note: Higher efficiency panels, strong PPA agreements, and better sunlight conditions can significantly increase generation and overall earnings.
Solar Power Plant Loan & Project Finance
Large solar projects are financed through Greenfield project finance models where banks provide funding based on future revenue.
- Loan Amount: 70%–80% of project cost
- Promoter Contribution: 20%–30%
- Loan Tenure: 10–18 years
- Moratorium: 6–18 months
Strong PPA agreements and a bankable DPR are essential for securing funding.
Key Factors Affecting Solar Plant Cost
- Location and sunlight availability
- Land cost and accessibility
- Solar panel technology
- Grid connectivity
- EPC contractor quality
Conclusion
Solar power plant investment from 100 kW to 10 MW offers strong long-term returns with stable income. Understanding cost, financing models, and revenue structure helps investors make better decisions.
Looking for solar project finance? Get expert support for DPR, PPA, and loan approval at MSMELOANS.IN.
What is the cost of a 100 kW solar power plant in India?
The cost of a 100 kW solar plant ranges from ₹40 lakh to ₹60 lakh, depending on location, equipment, and installation quality.
What is the cost of a 500 kW solar power plant?
How much does a 1 MW solar power plant cost?
The cost of a 1 MW solar plant in India is approximately ₹3.5 crore to ₹5 crore with a land requirement of 4.5 to 5 acres.
What is the cost of a 10 MW solar power plant?
A 10 MW solar project costs around ₹40 crore to ₹50 crore and requires about 40 to 50 acres of land.
How much loan can I get for a solar power plant?
Banks typically finance up to 70%–80% of the total project cost, with the remaining 20%–30% as promoter contribution.
What is the electricity generation of a 1 MW solar plant?
A 1 MW solar plant can generate approximately 14 to 16 lakh units per year, depending on location and sunlight conditions.
How much does a 40 MW solar power plant cost in India?
A 40 MW solar power plant typically costs between ₹120 crore and ₹160 crore, depending on land location, EPC contractor, and technology used.
How much land is required for a 40 MW solar plant?
A 40 MW solar project requires approximately 160 to 200 acres of land, depending on terrain, panel efficiency, and layout design.
How many units does a 40 MW solar plant generate?
A 40 MW solar power plant generates around:
- Daily: 1.6 – 2 lakh units
- Annually: 5.5 – 7 crore units
What is the income from a 40 MW solar power plant?
At a tariff of ₹3 – ₹5 per unit, a 40 MW solar plant can generate an annual revenue of approximately ₹18 crore to ₹35 crore, depending on PPA terms and generation efficiency.
What approvals are required for a solar power plant project?
Key approvals include:
- Land conversion (if applicable)
- Grid connectivity approval
- DISCOM/PPA agreement
- Environmental and local authority clearances
