Investment Model for 1 MW Solar Power Plant

We see a huge demand for information for investment models for setting up a 1 MW Solar Plant, We have decided to create a 1MW – 10 MW blog series to address most commonly asked questions

Below is the investment model for 1 MW Solar Plant All over India

Capacity of Power Plant 1 MW
Generation Expected per year 17.50 Lakhs Units/MW
Degradation till 1st 10 years 0.05%
Degradation from 11 to 25 years 0.67%
Debt Percentage 70%
Equity Percentage 30%
Rate of Interest of Indian Bank Loan 13.0%
Rate of Interest of Foreign Bank Loan 10%
Repayment Period of Indian Loan 11 years
Repayment Period of Foreign Loan 15 years
Percentage of Indian Loan 70%
Percentage of Foreign Loan
Average Cost of Sale of Electricity 6.49 Rs/unit
Yearly Escalation Expected  –
Cost of Project per MW 650 Lakhs/MW
O&M Cost per MW for 1st year 8.0 Lakhs/MW
Depreciation 5.28%
Corporate Tax 30.28%
Minimum Alternate Tax 18.38%
Project Funds
Project Cost 650 Lakhs
Debt 455 Lakhs
Equity 195 Lakhs

Here is the link to financial model ROI and profitability of 1 MW Solar Plant

Here is the link to step by step process to set up 1 MW Solar Plant

Here is the link to EPC price split for a 1 MW Solar Plant

Interested in setting up a 1 MW Solar Plant? visit our Solar Plant Services to find out about our end-to-end services for Solar Plant Setup

Also, see how you can earn up-to 15% by investing in Rooftop Solar Plants

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5 thoughts on “Investment Model for 1 MW Solar Power Plant

  1. Financial Model for 1 MW Solar Plant All over India – Maharshi Solar Powertech's Blog

  2. 1 MW Solar Power Plant EPC Cost with Multi Crystalline Modules – Maharshi Solar Powertech's Blog

  3. How to Setup a 1 MW Solar Plant in India? – Maharshi Solar Powertech's Blog

  4. Dear sir,
    Please tell me which type of solar cells are more profitable when we consider efficency ,cost and life for 1MW solar power plant.
    Please tell me about most commonly used solar cells for solar power plant.
    Is thin film will give better results than crytline silicon cell?
    Which is better from thin film and crytline silicon?
    And also tell me cost per 1MW of simple crytline silicon and multilayered crytline silicon cell?

    Like

  5. In general crystalline Silicon PV Modules have higher efficiency compare to thin film, but in Indian context thin film performs better in hotter states such as Gujarat and Rajasthan, also thin film modules require more space than crystalline

    from a cost perspective chines based crystalline modules are cheaper than US/CAN based thin film modules, So thin-film does not necessarily have competitive price advantage over crystalline

    Thin film is only recommended for commercial applications

    So there is no straight forward answer, it really depends on where your project is located and from where you are sourcing your modules

    Like

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