1 MW Solar Plant Cost in India: 2026 Breakdown

Direct answer

A 1 MW solar power plant in India costs ₹3.5-4.5 crore turnkey in 2026 (₹35-45 per Wp), with most industrial quotes landing at ₹3.7-4.1 crore. It generates 14-17.5 lakh units a year depending on location, and pays back in 6-7 years on plain grid savings - or 3.2-4.8 years with 40% accelerated depreciation.

2026 cost breakdown: where the money goes

A 2025 techno-economic study of a 1 MW Indian industrial plant put capex at about ₹4.0 crore, split roughly as follows:

(Source: IJFMR techno-economic study, Aug 2025; component shares corroborated by Qbits Energy capex glossary, Jul 2026.)

Two 2026-specific notes for buyers:

• CTUIL benchmark: effective 1 September 2026, grid-connectivity approvals use a benchmark of ₹3.5 crore/MW for solar (₹6 crore/MW wind, ₹0.80 crore/MWh BESS). Quotes materially above ₹4.5 crore/MW will face scrutiny in financial-closure checks (SauRo Energy, Sep 2026).
• Module prices are flat-to-down, but ALMM List-II cell rules and rising domestic (DCR) module prices could push system costs up through 2026 (Mercom India, Feb 2026).

For live module-level pricing, see our solar module price tracker for 2026 and the per-watt price guide.

Rooftop vs ground-mount at 1 MW

• Ground-mount (1 MW): needs 4-5 acres (up to ~6 with single-axis trackers) and lands at the lower end of the range, ₹3.5-4 crore, since structures and civil work are simpler per MW but land-related costs add up.
• Rooftop (1 MW): needs about 80,000 sq ft (7,400-7,500 sqm) of shade-free industrial roof. Real 2026 EPC quotes for NCR/UP-style industrial rooftops run ₹36-40/W turnkey including net-metering approvals and CEIG sign-off - roughly ₹3.6-4.0 crore per MW (market estimate; see our UP industrial solar guide).

Area norms in detail are in our rooftop area per kW/MW guide.

How much power does 1 MW produce?

At a capacity utilisation factor of 18-20%, 1 MW generates 15.7-17.5 lakh units per year. In the Delhi-NCR/UP belt, realistic yields are 14.2-15.2 lakh units per MW per year (1,420-1,520 kWh per kWp). City-wise yields are tabulated in our units generated per kW guide for North India.

Cost per kW at other plant sizes

Per-watt cost falls with scale - expect roughly a 10-15% drop moving from 100 kW to 1 MW:

Benchmark context across MW-scale projects is in our solar EPC cost per MW guide.

Payback, IRR and running costs

• Plain savings case: the 2025 study modelled ₹4.0 crore capex against net savings of about ₹62 lakh/year at a ₹4/kWh avoided-cost value - a 6.45-year payback and LCOE of ₹2.5-2.8/kWh.
• With tax depreciation: 40% Year-1 accelerated depreciation plus GST input credit compresses industrial paybacks to 3.2-4.8 years at HT tariffs of ₹7.95-10.50/kWh (methodology in our solar accelerated depreciation guide and IRR calculation methodology).
• O&M: budget ₹5-7 lakh per year for a 1 MW plant - modules, inverters, cleaning cycles and monitoring. Cleaning schedules by climate are covered in our panel cleaning schedule guide.

Frequently Asked Questions

What is the cost of a 1 MW solar plant in India in 2026?

₹3.5-4.5 crore turnkey (₹35-45/Wp). Most industrial rooftop and ground-mount quotes land at ₹3.7-4.1 crore including structures, inverters, cabling, approvals and commissioning. The CTUIL benchmark for grid-approval purposes is ₹3.5 crore/MW from 1 September 2026.

How many acres does a 1 MW solar plant need?

4-5 acres for a ground-mounted plant (up to ~6 acres with trackers). On a roof, 1 MW needs about 80,000 sq ft of usable industrial roofing.

How many units does 1 MW generate per year?

15.7-17.5 lakh units nationally at 18-20% CUF; 14.2-15.2 lakh units in the Delhi-NCR/UP belt. Multiply by your HT tariff to estimate annual savings.

Is any subsidy available for a 1 MW industrial solar plant?

No central capital subsidy applies to commercial and industrial solar - PM Surya Ghar is residential-only. The tax-side benefits (40% accelerated depreciation, 5% GST on solar devices, input credit) do the work instead; see our commercial solar subsidy reality check.

What is the per-unit cost of solar at 1 MW scale?

Levelised cost of energy works out to ₹2.5-2.8/kWh over 25 years at 1 MW scale, against industrial HT tariffs of ₹7.95-10.50/kWh across North India - a 3-4x spread that drives the 3-5 year paybacks.