500 kW Solar Plant Cost in India (2026)

How much does a 500 kW solar plant cost in India?

A 500 kW rooftop solar plant costs about ₹1.10 crore ex-GST at Sun Wave's C&I reference rate of ₹22,000/kW, and roughly ₹1.20 crore including GST once the ~8.9% effective GST on a turnkey EPC supply is added. The final price follows the site survey — roof structure, evacuation cabling and switching scope move it in either direction.

TL;DR: Budget ₹1.10 crore ex-GST (≈₹1.20 crore with GST) for a 500 kW industrial rooftop CAPEX plant. In North India it generates ~7.2–8.0 lakh units a year, needs 40,000–50,000 sq ft of roof, and — at a ₹7–10/unit tariff with high daytime self-consumption — pays back in roughly 2–4 years. There is no subsidy for C&I plants: PM Surya Ghar is residential-only.

Last verified: 8 November 2026

Contents

• 500 kW cost at a glance
• GST on a 500 kW rooftop solar plant
• How much power does 500 kW generate
• How much roof area does 500 kW need
• Savings and payback worked example
• Tax benefits: accelerated depreciation and GST credit
• Is there a subsidy for a 500 kW plant
• CAPEX vs RESCO and PPA at 500 kW
• How the project comes together
• FAQ

500 kW cost at a glance

For comparison at other sizes: a 100 kW plant runs ≈ ₹23 lakh ex-GST (₹23,000/kW) and a 1 MW plant ≈ ₹2.2 crore ex-GST — see the 100 kW solar system cost guide and the 1 MW solar plant cost guide.

GST on a 500 kW rooftop solar plant

Since 22 September 2025, GST on solar modules and renewable-energy devices is 5% (down from 12%), under Notification 9/2025-Central Tax (Rate) dated 17 September 2025. For a composite EPC supply, the 70:30 convention applies: 70% of the gross value is treated as goods (5% GST) and 30% as services (18% GST), making the effective rate ≈ 8.9% — the same arithmetic the CERC order walks through.

On a ₹1.10 crore ex-GST contract:

• GST ≈ ₹1.10 cr × 8.9% ≈ ₹9.8 lakh
• Indicative turnkey outflow ≈ ₹1.20 crore

Two caveats matter. First, GST input tax credit on a solar plant is conditional — eligibility depends on the entity's own taxable turnover and use, so treat credit as a tax question for your CA, not a given (see our GST and ITC guide for factories). Second, electricity sales and PPA tariffs carry no GST (exempt), so an OPEX/PPA route avoids the GST outflow question entirely.

How much power does 500 kW generate

In Delhi-NCR, Haryana and Rajasthan, a well-designed rooftop plant produces 1,500–1,600 units per kW per year (4.0–4.5 units/kW/day averaged across the year) — see our city-wise generation norms. A 500 kW plant therefore generates:

• ~7.5–8.0 lakh units a year (7,50,000 × to 8,00,000)
• Roughly 2,000–2,200 units a day averaged across the year, peaking above 2,600 in May and dipping near 1,500 in December

The value of those units depends on how much you self-consume. A plant exporting most of its output to the grid earns the much lower APPC/banking rate, so sizing to daytime load is what protects ROI — see how to size a solar plant for a factory.

How much roof area does 500 kW need

Plan on 80–100 sq ft per kW, i.e. 40,000–50,000 sq ft of usable, shade-free roof — about an acre of built-up area. A structural load assessment should precede any pricing, since reinforcement or a revised layout is the most common cost surprise at this size. Where roof area falls short, carports, elevated structures or a partial ground-mount can complete the capacity — see our carport vs ground-mount comparison.

Savings and payback worked example

Assumptions (stated so you can swap in your own numbers): ₹8/unit grid tariff, 90% daytime self-consumption, O&M at ₹500–800/kW/year, generation of 1,500 units/kW/year.

Across a ₹7–10/unit tariff band and 85–95% self-consumption, simple payback lands in the 2–4 year range, before financing costs and accelerated depreciation. If your load is a poor daytime match or your tariff is below ₹6/unit, run the numbers the other way first — the payback and ROI guide shows the sensitivity, and the IRR methodology guide covers the financing layer.

Tax benefits: accelerated depreciation and GST credit

For a CAPEX buyer, two tax levers typically shorten the effective payback:

1. Accelerated depreciation on the plant (historically 40% in year one for qualifying new machinery, subject to the Income Tax Act's conditions and your profitability) — see the accelerated depreciation guide and the AD vs Section 115BAA comparison.
2. Conditional GST input tax credit discussed above.

Both depend on your tax position — model them with your CA before committing to a structure.

Is there a subsidy for a 500 kW plant

No. The PM Surya Ghar central financial assistance applies to residential consumers and to group housing societies/RWAs for common facilities — not to commercial or industrial plants (PIB scheme annexure). Any quote that implies a C&I subsidy is misstating the scheme; see commercial solar subsidy realities.

CAPEX vs RESCO and PPA at 500 kW

A 500 kW plant is comfortably above the minimum size where third-party/RESCO developers operate. In an OPEX structure you pay a fixed ₹/kWh for the solar units consumed and the developer owns the O&M — see the RESCO/OPEX model guide and the CAPEX vs OPEX vs open access comparison. CAPEX wins on lifetime economics for profitable, tax-paying factories; OPEX wins when balance-sheet, tenancy or bandwidth constraints dominate.

How the project comes together

A typical 500 kW rooftop timeline runs: feasibility and structural check → sizing to load (guide) → HT connection and CEIG/electrical inspector approvals (CEIG guide) → net metering agreement under your state's rules (India net metering guide; state-specific: Haryana/DHBVN, UP/UPPCL, Delhi) → installation and commissioning (checklist). Net metering capacity caps are state-specific — Haryana's regulator has upheld a 500 kW net-metering cap for HT consumers, which a 500 kW plant brushes against exactly.

Planning at this size? Sun Wave's industrial solar team covers Delhi-NCR, Haryana, Rajasthan and UP, and Kolkata/West Bengal.

Frequently Asked Questions

How much does a 500 kW solar plant cost including GST?

About ₹1.20 crore turnkey at Sun Wave's reference rate — ₹1.10 crore ex-GST (₹22,000/kW) plus ≈8.9% effective GST (≈₹9.8 lakh) under the 70:30 composite-supply split. The final figure follows the site survey.

How many units does a 500 kW solar plant generate per day?

Roughly 2,000–2,200 units a day averaged over the year in North India (1,500–1,600 units/kW/year), with summer days well above that and December–January below it.

Is there any subsidy for industrial or commercial solar plants?

No. PM Surya Ghar's central financial assistance is limited to residential households and to RWAs/GHS for common facilities; commercial and industrial plants get no CFA.

What is the payback period for a 500 kW solar plant?

Roughly 2–4 years at a ₹7–10/unit tariff with high daytime self-consumption, before financing costs and accelerated depreciation benefits. The worked example above shows the arithmetic at ₹8/unit.

How much roof area is needed for 500 kW?

40,000–50,000 sq ft of usable, shade-free roof (80–100 sq ft/kW), subject to a structural load assessment.

Can a 500 kW plant be net-metered?

State rules vary. Haryana's regulator has upheld a 500 kW net-metering cap for HT consumers; other states set their own limits and banking conditions — check the relevant state guide or your DISCOM's regulations before sizing above the cap.

Do modules need to be DCR for a 500 kW CAPEX plant?

ALMM List-I (Indian-made) modules are mandatory for grid-connected projects. The stricter domestic-cell (List-II) requirement applies to PM Surya Ghar residential systems, not to C&I CAPEX plants — see the DCR vs non-DCR buyer guide.