A 1 GW solar power project in India can require investment of roughly ₹3,500 crore to more than ₹5,000 crore in 2026, depending on module technology, DC oversizing, domestic-content requirements, land, EPC, transmission and financing. CTUIL’s latest benchmark works out to ₹3,500 crore per GW, while SJVN’s 1 GW Bikaner Solar Power Project represents a real-world investment of about ₹5,492 crore. Adding battery storage can push project costs significantly higher.
For renewable-energy developers and investors, the headline cost per MW tells only part of the story. A project advertised as 1 GW AC can require substantially more than 1 GWp of solar modules, thousands of acres of land, new substations and transmission infrastructure.
Financing and storage can add hundreds or even thousands of crores to the investment.
1 GW Solar Project Cost: ₹3,500 Crore Benchmark
The latest CTUIL benchmark for solar project cost and land puts solar investment at ₹35 million per MW.
That translates into:
100 MW: ₹350 crore
500 MW: ₹1,750 crore
1 GW: ₹3,500 crore
The corresponding land benchmark is three acres per MW, suggesting approximately 3,000 acres for a 1 GW project.
But the ₹3,500 crore figure should not be interpreted as a universal turnkey construction price. CTUIL uses the benchmark for financial-closure and land-compliance assessments associated with interstate transmission connectivity.
Actual investment can be much higher.
SJVN’s 1 GW Bikaner Project Cost ₹5,492 Crore
A useful real-world comparison is SJVN Green Energy’s 1 GW Bikaner Solar Power Project in Rajasthan.
The project represents investment of approximately ₹5,492 crore and occupies nearly 5,000 acres, substantially above CTUIL’s 3,000-acre benchmark.
SJVN expects the project to generate approximately 2,454.84 million units in its first year and 56,482.14 million units over 25 years.
The difference between ₹3,500 crore and ₹5,492 crore illustrates why investors need to look beyond a standard cost-per-MW calculation.
Technology specifications, domestic-content requirements, site conditions, module capacity, substations, grid infrastructure and financing can materially change the final investment.
Why a 1 GW Solar Farm May Need 1.4 GWp of Modules
One of the most important factors is the distinction between AC and DC capacity.
A 1 GW AC solar project does not necessarily use only 1 GWp of modules. Developers commonly oversize the DC side so that inverters operate at higher utilization for more hours of the day.
SJVN’s Bikaner project provides a good example. Tata Power’s EPC scope involved 1,000 MW AC but approximately 1,400 MWp DC.
This dramatically changes module procurement economics.
At ₹14.2/Wp, purchasing 1.4 GWp of modules would represent approximately ₹1,988 crore.
At ₹22.3/Wp, the same module capacity would represent approximately ₹3,122 crore.
That is a difference of more than ₹1,100 crore.
More importantly, every ₹1/Wp change in module price across a 1.4 GWp project changes procurement value by approximately ₹140 crore.
Module procurement is therefore one of the most sensitive variables in large-scale solar investment.
DCR Solar Modules Carry a Major Cost Premium
Domestic-content requirements can create another significant difference.
JMK Research reported April 2026 domestic prices of approximately:
| Module technology | Price |
| 500 Wp Mono PERC | ₹13.8/Wp |
| TOPCon | ₹14.2/Wp |
| DCR TOPCon | ₹22.3/Wp |
The April 2026 Indian solar module price data illustrates the premium associated with DCR-compliant products. Actual prices, however, vary according to supplier, technology, order size, warranties, logistics and payment terms.
SJVN’s Bikaner development used around 24.22 lakh domestically manufactured DCR solar modules and approximately 175 crore indigenous solar cells.
India’s domestic supply chain is simultaneously expanding. Waaree subsidiary Sangam Solar One commissioned 3 GW of module capacity in Gujarat, while Premier Energies commissioned a 5.6 GW module manufacturing facility in Telangana.
Greater domestic manufacturing could eventually help reduce the cost differential while improving supply-chain security.
How Much Land Does a 1 GW Solar Project Need?
CTUIL’s benchmark suggests approximately 3,000 acres, but actual projects can require considerably more.
SJVN Bikaner occupies nearly 5,000 acres.
Land requirements depend on module efficiency, fixed-tilt versus tracker configuration, terrain, drainage, internal roads, spacing, setbacks, substations and transmission corridors.
Land cost itself is only one component. Developers must budget for registration, surveys, site grading, fencing, drainage, internal roads, security and other civil works.
This means that inexpensive land does not automatically produce a low-cost solar project.
Transmission Can Change the Economics
Grid connectivity can be just as important as land and modules.
A 1 GW plant can require pooling substations, transformers, transmission lines, switchgear, protection systems, metering and reactive-power equipment.
If a low-cost site is far from an available transmission node, the savings achieved through cheaper land can quickly disappear.
Transmission delays create another financial risk. A completed solar plant cannot generate its expected revenue if grid evacuation is unavailable.
Developers should therefore assess grid availability and evacuation costs before finalizing land, rather than treating transmission as a downstream engineering issue.
Adding BESS Can Cost ₹800 Crore per GWh
Battery storage can significantly increase project CAPEX.
CTUIL’s current BESS benchmark is ₹8 million per MWh, equivalent to:
500 MWh: ₹400 crore
1 GWh: ₹800 crore
2 GWh: ₹1,600 crore
A ₹3,500 crore benchmark solar project combined with 1 GWh of storage could therefore reach approximately ₹4,300 crore before considering project-specific deviations. A project already costing ₹5,000 crore-plus could move well beyond ₹6,000 crore with substantial storage.
Actual BESS costs depend on chemistry, storage duration, power-conversion systems, cooling, fire protection, energy-management systems, augmentation and warranty terms.
The investment can nevertheless create additional value by shifting low-cost daytime solar electricity into evening demand periods and making renewable power more dispatchable.
Financing Can Add Hundreds of Crores
The EPC contract is not the same as total project investment.
Consider a ₹4,500 crore solar project financed with 70 percent debt and 30 percent equity.
That would mean approximately:
Debt: ₹3,150 crore
Equity: ₹1,350 crore
At an illustrative 9 percent interest rate, annual interest on the initial debt balance would be approximately ₹283.5 crore, before principal repayments and other financial costs.
Interest during construction is particularly important.
A delayed project incurs financing costs for longer while electricity revenues are simultaneously postponed. Project execution can therefore materially affect ROI even if module and EPC prices remain unchanged.
How Much Revenue Can a 1 GW Solar Project Generate?
Generation and electricity tariffs determine whether the investment ultimately produces an attractive return.
SJVN’s Bikaner project is expected to generate about 2.455 billion kWh during its first year.
Using similar generation purely as an illustration, a 1 GW plant selling electricity at an average ₹3/kWh would produce:
2.45 billion kWh × ₹3 = approximately ₹735 crore in annual gross electricity revenue.
This is not profit.
Developers must deduct O&M, debt servicing, transmission charges, taxes, insurance and other expenses. They also need to model module degradation, plant availability and curtailment across the project’s operating life.
ROI therefore depends on the relationship between total lifecycle investment and lifetime electricity generation, not simply the initial cost per MW.
ReNew Invests ₹4,200 Crore in Solar Manufacturing
India’s solar investment cycle is also moving upstream.
ReNew plans to invest ₹4,200 crore in a 6.5 GW solar ingot-wafer manufacturing facility in Andhra Pradesh, expected to create more than 2,100 direct and indirect jobs.
The company already reported 6.4 GW of solar module manufacturing capacity and 2.5 GW of solar-cell capacity in FY2025-26.
The ReNew ₹4,200 crore solar manufacturing investment demonstrates how major renewable developers are moving beyond generation into upstream manufacturing.
Greater domestic wafer, cell and module capacity will be particularly important for projects subject to Indian sourcing requirements.
What Really Determines 1 GW Solar Project Cost?
For investors assessing a 1 GW solar project in India in 2026, three numbers provide useful reference points:
₹3,500 crore — CTUIL’s regulatory benchmark for 1 GW.
₹5,492 crore — SJVN’s real-world investment in the 1 GW Bikaner project.
₹800 crore/GWh — CTUIL’s benchmark for adding battery storage.
But none should be treated as a universal quotation.
A project’s final cost depends primarily on module technology and pricing, DC-to-AC ratio, DCR requirements, land, EPC, grid evacuation, financing and battery storage.
The sensitivity to modules alone is substantial: on a project using 1.4 GWp of panels, every ₹1/Wp movement changes procurement value by around ₹140 crore.
For developers and renewable-energy investors, the better question is therefore not simply “How much does 1 GW of solar cost?”
It is how much reliable electricity that investment can generate over 25 years, at what tariff, and with what financing and grid risk.
SHAFANA FAZAL