A 1 MW solar power plant cost is relatively high but it involves a long-term investment that proves beneficial in the long run and most of all it is an investment that will not harm the environment. Another form of renewable energy resource available is solar energy and it is most common in India. The costs of purchasing technology which can generate solar power are reducing gradually and the government is offering more incentives to go green.
To get high quality and fairly priced solar panels and inverters it is necessary to cooperate with the most qualified and best solar panels distributors. The decision on the right brands of solar inverters is important since they convert the power from the solar panels that are of the direct current to the one that is usable, the alternating current.
This article aims to highlight some of the key factors that go into the setting up of the 1 MW solar power plant cost in India. We shall also discuss some of the main government incentives that can be used to partly finance these costs.
Picking Solar Energy for Your Business
Most organizations would like to reduce expenses and be more environmentally friendly by producing their electricity and light through the use of solar energy. There are many advantages to installing a large-scale 1MW solar power plant.
Cost Cut-Back
But the most significant motivational factor that is hard to ignore is that of preventing electricity bills in the future. A solar plant is a one-off investment and the electricity produced for many years means a healthier bank balance.
A solar plant is an investment that is made once and the electricity that is generated for many years is changing the fortunes of the companies. This independent energy source protects businesses from future rate increases by the utility. Once installed, solar power generation has very low maintenance needs compared to burning fossil fuels.
Brand Image
Today’s consumers and clients care about sustainability. Switching to solar demonstrates your company’s commitment to the planet. This green reputation can attract environmentally-conscious customers and employees. Running on Sunshine enhances your branding as a progressive business leading the way.
Durability and Reliability
A properly installed and maintained solar system will last 25-30 years generating clean power the whole time. This provides long-term energy security without relying on fuels that can face price volatility. Solar panels require little besides routine cleaning to keep working year after year. Remote monitoring also allows for prompt issues solving.
Reduced Carbon Footprint
Solar is a local source of energy and is entirely clean since it does not contaminate the air and water sources. This way, your operations create an independent electric power that is significantly cleaner than burning coal or natural gas. Going solar earns environmental points while saving the world’s atmosphere.
Size and Output of a 1MW Plant
A megawatt of solar panels spans several acres and produces a massive amount of energy. In optimal conditions, 1 MW can generate around 4,000 kilowatt hours in a single day. Though weather impacts this, that’s a lot of clean power to offset high commercial bills or fuel costs. Proper placement and quality components maximize long-term solar yields.
What is a 1MW Solar Power Plant Cost?
A 1 MW solar power plant cost involves a substantial amount of capital needed to purchase the land for the power plant, solar modules, power converters, wiring, and other related structures. On average, a 1MW commercial solar installation requires an investment of ₹4.5-5 crores.
Panels, inverters, and mounting equipment make up the bulk of expenses. The exact budget depends on parts, installation challenges, and whether batteries are included for off-grid use. With no fuel inputs, solar saves ongoing energy spending.
Government Incentives
While India does not subsidize large 1MW projects, tax policies promote commercial solar adoption. Accelerated depreciation allows writing off capital costs faster to reduce taxable income. Net metering policies let excess power flow back to the grid with compensation. These incentives further sweeten the financial case for organizations to power up with pollution-free photovoltaics.
To promote solar energy generation, the Indian government offers a host of incentives and policies like fiscal benefits, accelerated depreciation, etc. Some of the key incentives are:
- Fiscal benefits: Manufacturing units, hospitals, hotels, and other business establishments get fiscal benefits if they install solar-generating facilities for their usage and for supplying excess electricity to the grid.
- Generation-Based Incentive: Particularly, Rs. 2 per unit is allowed to the developers for 10 years for the solar power which is fed into the grid. It also helps in increasing returns by a large margin, based on which this method also finds support.
- Preferential Tariffs: Preferential/fixed tariffs which are higher than average power costs for the duration of power purchase agreements of 25 years.
- Concessional Financing: Another factor extends cheap funds on renewable projects at cheaper rates of interest that range from 70% of the project costs through IREDA and other bodies.
- Lower/Waived Penalties: Some states allow for penalty tariffs for selling power to the grid when there is downtime for repairs etc while solar projects are excluded from this.
- Lower Taxes: The corporate tax rate is 25% + surcharge and other than this some of the import components used for solar power projects enjoy tax exemptions.
Securing Land Space for 1MW Plant
Ideally, a 1MW plant needs 2.5-6 acres of open land for a traditional ground-mounted setup. However, innovative dual-use solar roofs maximize available real estate. Integrated ‘InRoof’ panels replace conventional roofing to generate more energy in less footprint. This makes solar viable even in factories, warehouses, parking structures, or other developed properties with constrained outdoor rooms.
In conclusion, the benefits of cost savings, branding, sustainability leadership, and reliability make large-scale solar power an attractive clean energy investment for forward-thinking companies. With technical advances reducing costs and government policies encouraging deployment, now is an ideal time for businesses to start living off the sun.
The 1 MW solar power plant cost is recovered within 5-7 years with the help of electricity saved and the various fiscal incentives.
Sun-AP Ecopower is a company dealing in solar products which has established a reputation as a result of its high-performing PV products.
