1 MW solar power plant cost in Gujarat
A complete, independent cost, land, generation and return breakdown for a 1 MW ground-mount solar plant in Gujarat.
A 1 MW plant is the classic entry point for first-time solar investors and mid-sized industries — small enough to fund with limited equity, large enough for a bankable return.
Ideal for DREBP (25-year PPA) or PM-KUSUM Component-A.
1 MW at a glance
The economics of a 1 MW plant, in plain words
Over its 25-year life a 1 MW plant in Gujarat generates about 16.6 lakh units a year. Under a DREBP PPA at ₹2.76/unit that is roughly ₹0.46 crore of revenue a year; on open access nearer ₹0.67 crore. After ₹0.07 crore of annual O&M, net income runs ₹0.39–0.6 crore a year, so the ₹4.1 crore build pays back in about 6.8–10.5 years and then earns largely profit. Claiming 40% accelerated depreciation shields roughly ₹0.41 crore of tax in year one, and undiscounted 25-year PPA revenue is around ₹11.5 crore.
1 MW cost & return breakdown
Sourced figures — not an EPC quote.
| Parameter | 1 MW — value (indicative) |
|---|---|
| Total project cost (CAPEX) | ₹4.1 Cr |
| Land required | 3–4 acres |
| Annual generation | 16.6 lakh units/yr |
| Annual revenue (DREBP PPA) | ₹0.46 Cr/yr |
| Annual revenue (open access) | ₹0.67 Cr/yr |
| Annual O&M cost | ₹0.07 Cr/yr |
| Net annual income | ₹0.39 – 0.6 Cr/yr |
| Payback period | 6.8 – 10.5 yrs |
| Year-1 AD tax benefit (40%) | ₹0.41 Cr |
| 25-year gross revenue (PPA) | ₹11.5 Cr |
Assumptions: 19% CUF, ground-mount EPC cost, Gujarat irradiance. Actual figures vary by site.
Key considerations for a plant this size
A 1 MW ground-mount plant needs roughly 3–4 acres near a viable substation and is usually funded with 25–30% equity and the rest as project debt. Most owners at this size go the DREBP route for a fixed 25-year PPA, or run captive to offset an industrial load. A bankable DPR and a clean land title are what decide financing.
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