1 MW Solar Plant Profit Calculator ?

1MW SOLAR PLANT

📌 1. Estimated Costs (CAPEX) — Setting Up the Plant

Item	Typical Cost (₹)
Solar Panels (1 MW)	~₹3,00,00,000
Inverters & Electrical Equipment	~₹1,00,00,000
BOS (Cables, Safety, Mounts)	~₹25,00,000
Civil, Erection, & Site Works	~₹50,00,000
SCADA/Control & Land Prep	~₹15,00,000
Total CAPEX (Approx)	₹4.8 – 5.0 cr

➡️ Typical total cost range for a 1 MW plant in India is ₹4 – ₹5 cr depending on land costs, technology, and grid connection. 

📌 Note: In Rajasthan (especially high irradiation regions like Jaisalmer, Bhadla, Barmer) generation potential is high, which improves revenue estimates.

📈 2. Energy Production (Annual)

A well-designed 1 MW plant in Rajasthan typically generates:

⚡ Annual Generation Estimate

• ~14,40,000 to ~17,28,000 kWh/year
  (i.e., 1.44 – 1.73 million units) 

This assumes good irradiation (~5.5+ sun hours/day). Rajasthan’s high solar potential helps maximize output. 

💰 3. Revenue — Selling Electricity

🔹 Electricity Selling Price

If you sell via a PPA/Net Metering agreement:

• A common rate in Rajasthan is around ₹2.75 – ₹3.10 per unit for utility purchase agreements under schemes like PM KUSUM or DISCOM PPAs. 

🔹 Annual Revenue Estimate

Generator Output	Tariff ₹3.00/unit	Revenue
1,440,000 kWh	₹3	₹43.2 Lakh
1,650,000 kWh	₹3	₹49.5 Lakh
1,728,000 kWh	₹3	₹51.8 Lakh

💡 So typical gross revenue is ₹43 – ₹52 lakh/year depending on generation and tariff. 

(Lower tariffs like ₹2.65–₹2.75 reduce these numbers slightly; higher tariffs like ₹3.10 raise revenue.) 

🛠️ 4. Operational Expenses (OPEX)

Annual expenses for a 1 MW plant usually include:

Expense Type	Typical Annual Cost
O&M (Maintenance)	₹8 – ₹10 lakh
Insurance & Misc	₹1 – ₹2 lakh
Land Lease (if not owned)	₹1 – ₹5 lakh
Total OPEX / year	~₹10 – ₹17 lakh

➡️ So net operational revenue (before financing) may be:

~₹26 – ₹42 lakh net/year after expenses (Varies by tariff & costs).

📊 5. Profit & Payback Calculation

📍 Simple Payback

If total CAPEX = ₹5 cr:

Net Annual Cashflow	Payback Period
₹30 lakh	~16–17 years
₹35 lakh	~14–15 years
₹40 lakh	~12–13 years

So simple payback under typical conditions is ~12 – 17 years.

🧠 6. Financing Considerations

If you use loans:

• Debt portion (e.g., 70% loan) increases interest cost.

• Net cashflow reduces until debt is repaid.

Example from community analysis (loan scenario) shows a 1 MW project could be unprofitable if fully loan-financed and sold at ₹3.04/unit with high interest — unless generation/tariff is higher or equity share increases. 

This illustrates the importance of:
✔ Higher equity share
✔ Lower interest rates
✔ Strong PPA tariff
✔ Good irradiance site

📉 7. Factors affecting Profitability

🔹 Tariff (₹/unit)

Higher selling prices drastically improve profits.
👉 Even ₹0.20/unit increase can add ₹3–4 lakh/year.

🔹 Generation / CUF

Better irradiance → more units → more revenue.

🔹 Costs

Lower CAPEX (via subsidies or negotiated pricing) shortens payback.

🔹 Subsidies / Incentives

Programs like PM KUSUM or state incentives can lower net CAPEX or guarantee tariffs (PPA) over 25 years. 

🧮 Example Profit Calculator — Quick Formula

You can estimate project returns roughly like this:

Annual Units × Tariff (₹/kWh) = Gross Revenue
Gross Revenue – O&M = Net Cashflow
Total CAPEX ÷ Net Cashflow = Payback Years

Example:

1,500,000 units × ₹3 = ₹45,00,000
– O&M ₹12,00,000
= ₹33,00,000 net
₹5,00,00,000 ÷ ₹33,00,000 ≈ 15.2 years payback

📌 Summary — Typical Insights (Rajasthan)

Pros
✅ Strong solar irradiation → higher generation
✅ Stable long-term PPAs under schemes like PM KUSUM
✅ Plant life 25+ years → long energy sales window

Challenges
⚠ High upfront cost and land lease cost
⚠ Lower tariffs (₹2.7–₹3.1) reduce cashflows vs ₹3.5–₹5
⚠ Financing costs reduce net profits significantly

Profit Outlook
👉 With owned land and good tariff, annual profits can be ₹25 – ₹40 lakh and payback ~12–15 years
👉 If fully loan financed at standard interest, returns can be tight or negative unless tariff or generation is above average.