Two different decisions: produce electricity on land, or use solar to power irrigation. Their costs, approvals and support are not interchangeable.
A plant on your land
Ground-mounted panels connect through inverters, transformers and an evacuation line to a permitted grid connection. You can develop a project and sell electricity under a power purchase agreement (PPA), or lease suitable land to a developer.
A land lease can provide rent without owning the plant, but check payment security, escalation, access rights, taxes, restoration and the lease term. Ownership brings construction, financing and operating risks.
Land and grid access come first
A planning allowance is about 4–5 acres per MW; terrain and panel layout can change this. Confirm clear title or a long-term lease, permitted land use, drainage, flood risk, road access, cleaning water and security.
Ask the DISCOM about available substation capacity and connection distance before buying equipment. Transformer, line, right-of-way and grid-upgrade costs can make an otherwise suitable site uneconomic.
A transparent 1 MW illustration
Use ₹3.5–4.5 crore per MW only as an early budget assumption, excluding land and major connection upgrades; obtain current EPC quotes. The ₹3.5 crore/MW scheme benchmark is not a guaranteed market price.
At an assumed 18% capacity factor, 1 MW generates about 15.77 lakh units/year (1,000 × 8,760 × 18%). At an illustrative ₹3/unit contracted tariff, gross revenue is about ₹47.30 lakh/year. The actual PPA tariff may be different.
Revenue is not profit
Deduct maintenance, security, insurance, lease rent, cleaning, grid losses, curtailment, interest and taxes. Check payment delays, degradation, replacement reserves and contract obligations. Do not borrow on the basis of the gross-revenue example.
For electricity used on-site, savings depend on avoided tariffs and applicable open-access or network charges. Obtain a site-specific engineering and financial study before signing a PPA or finance agreement.
Solar irrigation
Size the pump for water demand, seasonal water level, total pumping head and pipe losses—not horsepower alone. Standalone solar pumps mainly operate in sunshine; water storage can help schedule irrigation. Grid-connected solarisation is a different design.
As a rough budgeting example, a 3–5 HP solar pumping installation may require several lakh rupees; use the state tender’s approved model and cost, not a generic per-kW home-rooftop quote. Check borewell condition, pump/controller compatibility, dry-run protection, warranty and local service.
A practical first step
- Record land or pump details and annual electricity/diesel spending.
- Ask your state agency or DISCOM about a current tender and grid feasibility.
- Compare approved vendors and itemised engineering quotes.
- Confirm support in writing before paying or committing to finance.
Cheap pumping does not make groundwater unlimited: use irrigation scheduling and water-saving practices.