A Guide On 1 MW Solar Power Plant: Types, Cost, Pros, Cons, and More

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A 1 MW solar power plant is a solar system that operates with a 1-megawatt capacity. It can be considered as a Ground Mounted Solar Power Plant or Solar Power Station, as it requires significant space. 

These solar power plants generate a substantial amount of electricity, sufficient to power an entire company independently. 

  • – The 1 MW solar power plant is ideal for factories, large commercial industries, hospitals, and other institutions. 
  • – These are usually installed by the government for commercial-scale consumers mostly. 
  • – If it is installed by industry, the produced solar power can be sold to the government.

If you are thinking of setting up a 1 MW solar power plant and are keen on knowing the 1 megawatt solar power plant cost, dig in for details!

Types of Solar Power Plants

Before directly moving to the solar plant cost, let us first look at the types of 1 MW solar power plant installations. There are 3 major types as discussed below. 

#1. Off-Grid Solar Power Plant

An off-grid solar power plant is a battery-based solar power generation setup. The various components of this type of solar system are: 

  • – Solar panels (modules)
  • – Mounting structures
  • – Batteries
  • – Solar charge controller
  • – Solar inverter
  • – Solar accessories

It is an independent energy generation unit since it’s not connected to the grid. 

#2. On-Grid Solar Power Plant

An on-grid solar power plant is also called a grid-connected or grid-tied system. The electricity produced by the panels in an on-grid setup is converted into AC power that is used to run appliances. 

Now, whenever there are extra units generated (more than what can be consumed), a bidirectional meter transfers those units to the grid. 

During the night, units are imported from the grid to keep the load running. This unit exchange is recorded by the bidirectional meter that’s later on used to generate the solar bill. 

On-grid solar power plants are ideal for residential installations as well as commercial and industrial sectors.

#3. Hybrid Solar Power Plant

A hybrid solar power plant has the features of both on-grid and off-grid systems: it’s connected to the grid as well as to the batteries.

Whenever there’s a grid failure, the hybrid system uses the power from the batteries to keep the load running. That’s one advantage over the on-grid system. But do keep in mind that the cost of batteries makes hybrid solar plants expensive. 

Basics about a 1 MW solar power plant

One Megawatt is equal to 1000 kilowatts. A 1 kW solar system needs a space of 100 sq feet for installation. Hence, a 1 MW solar power plant will require (100 x 1000) = 1,00,000 square feet of area for installation. 

Preferably, a 1 MW solar power plant is a ground-mounted system since most rooftops don’t have that much space for installation.

Ground-mounted solar power plants work the same as rooftop solar plants. 

  • – The solar modules trap the sunlight to produce an electric charge in the form of DC power
  • – The DC power is then transferred to the solar inverter
  • – The solar inverter converts DC power into AC power

Installing a ground-mounted plant is apt if you have a commercial business with an open land space.

1 MM Commercial Solar Power Plant

A 1 MW solar power plant for commercial use can be designed and customized as per the requirement. Notably, there are two models. Let us explore them both.

  • CAPEX Model 

In the CAPEX model, you must bear all the capital expenditure. You will own this solar plant. Which means you’ll generate your own electricity to fulfill the utility requirements. This model is most suitable when you are planning to install a solar system with a capacity of 100kW or less.

  • OPEX Model

In the OPEX model, you will only bear operation expenditure. Why? Because you do not own the plant in this model, the vendor does. 

You purchase solar electricity from the vendor. This is still very economical because the prices of solar power are petty in comparison to the prices of electricity from the grid. 

You can later on also buy this plant from the vendor. 

Cost of 1 MW solar plant

Now, let us discuss the cost of 1 MW solar plant. There is no fixed number for the final 1 MW solar plant cost. However, we have a tentative figure – between 4 to 5 crore.

This price range is subject to increase or decrease depending on various factors. Here are some factors affecting the overall 1 megawatt solar power plant cost.

  • – Type of solar panels selected – monocrystalline or polycrystalline panels
  • – Manufacturing technology and efficiency of the solar inverter selected
  • – Solar brand opted
  • – Type of solar power plant – on-Grid, off-grid, or hybrid 

Concerning the 1 MW solar power plant subsidy 2020, the government provides subsidies on solar plants for residential setups and housing societies. No subsidy is offered for solar systems being installed for commercial purposes. 

How To Choose The Best Solar Power Plant?

The power production capacity of a 1 MW solar power plant is very high as it is not a small-capacity system. But how much electricity can it produce?

A 1 kW solar system produces roughly 4 units/day. Hence, a 1MW system will generate (4 units x 1000 kW) = 4,000 units/day, as 1MW = 1000kW. 

Hence, the monthly power generation will be 1,20,000 units and the yearly power generation will be 14,40,000 units.

So, you need to keep your power requirements in mind in order to choose the best solar plant. 

Pros & Limitations of Solar Power Plants

There are some major pros & a few limitations of solar power systems. Have a look at both.


  • – Solar power plants offer clean, green electricity that doesn’t cause global warming.
  • – Solar power plants of the right capacity cover all power requirements. Hence, the electricity bill falls sharply.
  • – The working life of solar panels is up to 25 years. Besides, solar power plants typically do not require heavy maintenance.
  • – After 25 years, the panels do not stop working. They continue generating electricity at 70% efficiency.


  • – The 1 MW solar power plant cost is significantly high. However, it’s worth considering.
  • – Though solar power can be generated on cloudy days, the efficiency does drop. 


A 1 MW solar power plant is a capacious medium for meeting large-scale power requirements. Opting for the installation of such a solar power plant would be a wise step for you. 

As the pollution from the use of fossil fuels is increasing day by day, solar energy is an ideal alternative to it. 


1. What is the cost of a 1 MW solar plant in India?

The approximate cost needed for the installation of a 1 MW solar power plant is ₹4 – ₹5 crores. But this is just a tentative figure, the final price can vary.

2. How much electricity can a 1MW solar plant produce?

A 1 MW system will generate:

  • – 4,000 units/day (4 units x 1000kW),
  • – 1,20,000 units/month, and 
  • – 14,40,000 units/year.
3. How much land area does a 1 MW ground-mounted solar plant need? 

A 1 kW solar system needs a space of 100 sq feet for installation. 1 MW solar-powered plant will need around 1,00,000 square feet (100 x 1000) of land.