A 1MW solar power plant is a large-scale renewable energy solution designed to generate clean electricity for industrial, commercial, institutional, or utility applications. Conducting a comprehensive feasibility analysis of a 1MW solar power plant is a crucial step before project development, as it evaluates technical viability, financial returns, site suitability, regulatory requirements, and long-term performance.
With rising electricity costs and growing emphasis on sustainability, investing in a 1MW solar project offers both economic and environmental benefits. This guide provides a complete overview of the factors involved in assessing the feasibility of a 1MW solar installation.
What is a 1MW Solar Power Plant?
A 1 megawatt (MW) solar photovoltaic (PV) plant is capable of generating large quantities of electricity using sunlight. It is typically installed as a ground-mounted system and connected either to the grid or used for captive consumption.
Typical generation capacity:
- 4,000 to 5,000 kWh (units) per day
- 1.4 to 1.8 million kWh per year
- Power supply for large factories, campuses, or communities
Why Feasibility Analysis is Important
A proper feasibility study ensures that the solar project is technically sound and financially profitable. It helps stakeholders avoid costly mistakes and optimize system performance.
Key objectives of feasibility analysis:
- Assess site suitability and solar potential
- Estimate project cost and returns
- Identify technical requirements
- Evaluate risks and constraints
- Support financing and approvals
- Ensure long-term operational success
Land Requirement for a 1MW Solar Plant
Land availability and quality are critical factors.
Typical land requirement:
- 4 to 5 acres for ground-mounted systems
- Flat, shadow-free land preferred
Site selection considerations:
- High solar radiation levels
- Minimal shading from trees or buildings
- Proper drainage and low flood risk
- Good soil strength for foundations
- Easy road access for construction
- Proximity to transmission infrastructure
Solar Resource Assessment
Solar energy output depends on the availability of sunlight throughout the year.
Important parameters include:
- Global Horizontal Irradiance (GHI)
- Peak Sun Hours (PSH)
- Seasonal weather patterns
- Temperature variations
- Dust and atmospheric conditions
Regions with higher solar irradiation produce greater energy and better financial returns.
Technical Feasibility Study
Technical analysis determines system design, equipment selection, and performance expectations.
Solar Modules (Panels)
- Common panel types used in 1MW plants:
- Monocrystalline panels — high efficiency
- Polycrystalline panels — cost-effective
- Bifacial panels — higher output for utility projects
Approximate number of panels:
2,500 to 3,000 modules depending on wattage
Inverter Selection
Inverters convert DC power from panels into usable AC electricity.
Options include:
- Central inverters — suitable for large solar farms
- String inverters — better monitoring and reliability
Mounting Structures
Mounting systems determine panel orientation and energy output.
- Fixed tilt structures — lower cost, simple design
- Single-axis trackers — increased generation
- Dual-axis trackers — maximum output but higher cost
Grid Connectivity and Electrical Infrastructure
Power evacuation is a major feasibility component.
Key factors:
- Distance to nearest substation
- Grid capacity and stability
- Transmission line requirements
- Voltage compatibility
- Protection and synchronization systems
Grid connection costs can significantly influence project economics.
Regulatory and Approval Requirements
Solar power plants require multiple clearances before construction.
Typical approvals include:
- Land use conversion (if required)
- Electricity board permissions
- Environmental approvals (if applicable)
- Open access approval for captive plants
- Power Purchase Agreement (PPA) for grid-connected projects
Understanding regulatory requirements early helps avoid delays.
Financial Feasibility Analysis
Financial evaluation determines project profitability and investment viability.
Capital Cost of a 1MW Solar Power Plant
Approximate cost in India:
₹3.5 crore to ₹5 crore depending on technology, location, and infrastructure.
Major cost components:
- Solar modules
- Inverters
- Mounting structures
- Civil and electrical works
- Transformers and cables
- Land development
- Installation and commissioning
Operation and Maintenance (O&M) Cost
Annual maintenance expenses are relatively low.
Typical O&M cost:
1% to 2% of total project cost per year
Includes:
- Panel cleaning
- Preventive maintenance
- Monitoring systems
- Security and insurance
- Equipment replacement
Revenue Generation and Savings
Returns depend on project type.
Captive Solar Plant
- Reduces electricity bills for industries
- Protection from tariff hikes
- Energy independence
- Faster payback
Grid-Connected Solar Plant
- Revenue through power sale
- Long-term PPA income
- Potential government incentives
Return on Investment (ROI)
A well-designed 1MW solar plant offers attractive financial returns.
Typical performance indicators:
- Payback period: 4 to 7 years
- Internal Rate of Return (IRR): 12% to 20%
- Plant lifespan: 25 years or more
Higher solar radiation and lower land costs improve ROI.
Risk Assessment
Feasibility studies must identify potential risks:
- Policy or tariff changes
- Equipment degradation
- Weather variability
- Grid curtailment
- Financing challenges
- Land ownership issues
Proper planning helps mitigate these risks.
Environmental Benefits
Investing in solar energy contributes to sustainability goals.
Key environmental advantages:
- Zero emissions during operation
- Reduced carbon footprint
- Renewable and clean energy source
- Minimal water usage
- Low environmental impact
Project Implementation Timeline
Typical duration for a 1MW solar project:
- Feasibility study: 1–2 months
- Approvals and financing: 2–4 months
- Procurement and construction: 3–5 months
- Testing and commissioning: 1 month
Total timeline: 6 to 12 months
Advantages of a 1MW Solar Power Plant
- Long-term stable energy supply
- Significant electricity cost savings
- Low operational expenses
- Protection against rising power tariffs
- Sustainable corporate image
- Reduced dependence on fossil fuels
FAQ on Feasibility Analysis of 1MW Solar Power Plant
Can a 1MW solar plant operate during cloudy or rainy days?
Yes, solar panels still generate electricity under diffuse sunlight, but output decreases significantly during cloudy or rainy conditions. Annual generation estimates already account for seasonal weather variations.
What type of land is not suitable for a solar power plant?
Land may be unsuitable if it has:
- Heavy shading
- Frequent flooding
- Rocky terrain requiring expensive foundations
- Legal disputes or unclear ownership
- Environmental restrictions
- Steep slopes
Such conditions increase project cost and reduce feasibility.
How far should a 1MW solar plant be from a substation?
Ideally, the plant should be located as close as possible to an electrical substation to minimize transmission losses and infrastructure costs. Long-distance evacuation requires additional investment in transmission lines and approvals.
What is the capacity utilization factor (CUF) of a 1MW solar plant?
The Capacity Utilization Factor represents actual output versus maximum possible output.
Typical CUF in India:
> 17% to 22%
Higher CUF indicates better performance and profitability.
Is water required for operating a 1MW solar power plant?
Water is mainly needed for cleaning solar panels to remove dust and dirt. Consumption is relatively low compared to conventional power plants. In water-scarce regions, robotic or dry-cleaning systems may be used.
Can a 1MW solar plant be expanded later?
Yes. If sufficient land and grid capacity are available, additional solar capacity can be added. Planning future expansion during the initial design phase reduces upgrade costs.