Solar power is growing like never before in India. From households to industrial use, all are looking to implement solar energy to have clean and cheaper energy. However, before setting up a solar plant, it is essential to be aware of the actual solar power plant setup cost in India.
Understanding the cost to set up solar power plant in india is a wise decision. It helps you plan better, prevents unwanted expenses and saves you from unpleasant surprises.
Let’s explore the topic in detail to understand more about it.
Solar Power Plant Setup Cost in India depends on?
Many factors determine the cost to set up a solar power plant in India.
Location
A spot receiving abundant sunlight is an ideal location. Rural land is cheaper than urban land. Cost involves the purchase of land or using it by paying rent to the landowner. In addition, if the terrain is uneven, you may have to put in more money to make it suitable for solar setup installation.
Solar plant type and size
Solar plant’s size and type play a vital role. Commercial solar panels are more expensive than a small residential system. Larger solar systems require more space and equipment, which raises the cost even further.
Materials quality
The quality and type of materials also impact the price. Monocrystalline panels are highly efficient. Hence, they are the most expensive. Choose polycrystalline panels, which are cheaper, to keep the expenses in limit. Bifacial panels absorb sunlight from both sides and produce a high amount of solar energy. They capture sunlight from both sides, but they are the most expensive.
Other equipment
You also have to invest in inverters, mounting structure, wires and safety devices. If the solar plant is off-grid, then you may also have to invest in battery storage systems.
Labour and Installation Costs
Solar system installation isn’t a job that just anyone can do. You need a professional company and skilled workers to get the work done without any flaws.
Solar panel manufacturing plant cost depends on the location and size of the solar project. A big setup will require more manpower and more time.
Solar Power Plant Cost in India
Here’s a detailed breakdown of the solar power plant setup cost in India.
| Component | Details | Estimated Cost |
| Solar Panels | Monocrystalline: High efficiency Polycrystalline: Lower cost |
Rs.25 – Rs.31 per watt |
| Panel Share of Total Cost | A major portion of the setup cost | 50–60% of the total cost |
| Inverters | Converts DC to AC power | Rs.40,000 – Rs.1.5 lakh per MW |
| Mounting Structures | Supports panels on the ground or the rooftop | Rs.30,000 – Rs.90,000 per MW |
| Other Equipment | Cables, junction boxes, safety devices | Varies by scale and quality |
| Manufacturing Plant Setup | For a 100 MW annual capacity | Rs.20 – Rs.30 crore |
| Machinery for Manufacturing | Laminators, testers, tabbers | Several crores |
| Monitoring Systems | Tracks performance and faults | Rs.1 – Rs.5 lakh per MW |
| Grid Integration | Connection to the local power grid | Rs.5 – Rs.20 lakh per MW |
| Wiring & Safety Systems | Ensures stable and safe power flow | Included in the balance of system costs |
1 Megawatt Solar Power Plant Cost Analysis in India
Let’s explore the 1 megawatt solar power plant cost and analyse it further to have a clear picture of the industrial solar panels price involved.
Investment Range
The investment ranges between Rs. 4 crore to Rs. 6 crore for a 1 megawatt solar power plant in India. The location, panel types, and equipment quality all impact the final cost.
Land Requirements and Cost
A 1 MW solar plant requires at least four to five acres of land. It must receive good sunlight and must be free from shadows. The land prices vary by state.
Energy Output and ROI
1 MW solar plant generates about 14 to 16 lakh units of electricity per year. That means, a 1 MW solar plant can power around 200 – 250 homes or a medium-sized factory. You can earn Rs. 43 to Rs. 86 lakh every year by selling electricity and saving on bills. The payment period is usually 5 to 8 years.
Financing Options for Solar Power Plant Setup in India
Banks and NBFCs offer solar loans in India at low interest rates, making it easier to fund your project. Businesses can also use green bonds to raise capital and claim tax rebates for switching to solar. Choose between the CAPEX model (own the system) or the OPEX model (pay monthly with no upfront cost) based on your budget and ROI goals.
Tips for Cost Optimisation While Setting Up a Solar Power Plant
- Choose the right solar technology. Choosing monocrystalline or bifacial panels produces more power, which justifies their cost. They prove more productive in the long run.
- Evaluate the site properly. Select the solar project installation spot which receives good sunlight. Check the land for ground-mounted solar projects and ensure it doesn’t block sunlight.
- It’s crucial to consider the maintenance and running costs. A 1 megawatt solar power plant cost for maintenance comes to around Rs. 9 to 18 lakh per year. However, you can use smart tools and automated cleaning systems to reduce these costs.
Conclusion
The article provides a clear picture of the commercial solar panel cost, the solar panel manufacturing plant cost, and the industrial solar panels price.
It’s crucial to choose the land and appropriate panels based on your requirements and budget. Each factor plays a vital role in the overall cost. However, managing the costs will be simple if you plan.
Solar energy is the only viable option to cut through the competition. Freyr Energy guides you and helps you set up your solar energy project flawlessly and professionally.