Solar Farm Income Calculator

How this Solar Farm Income Calculator works

This tool gives you a quick, back-of-the-envelope estimate of how much income a solar farm can generate from your land in India. You choose:

• How many acres of land you want to use
• The tariff rate (₹ per unit / kWh) from your PPA
• CUF - Capacity Utilization Factor (how efficiently the plant runs)
• Installed capacity per acre (MW), usually close to 1 MW/acre for utility-scale

The calculator then estimates the annual energy generation and multiplies it by your tariff to get a rough yearly income.

Key assumptions and logic

With the default values (1 acre, 1 MW, 19% CUF), the theoretical generation is:

After ~10% system losses, we round this to ~15,00,000 kWh/year per acre. The calculator multiplies this by your land area and tariff rate.

Note: CUF reference is broadly aligned with CERC RE Tariff Regulations for solar PV projects.

Realism note

This is intentionally a quick estimation tool. It does not include:

• Project capital cost and financing
• O&M (operation & maintenance) expenses
• Panel degradation over 25 years
• Land cost or lease charges
• Grid availability and curtailment

Think of it as a friendly “first pass” before you open Excel or call your consultant.

Disclaimer

This calculator is for educational use only. Actual returns will depend on site-specific solar irradiation, EPC quality, financing terms, state policies and the fine print of your Power Purchase Agreement (PPA).

Indiagraphs is not responsible for investment decisions taken solely on the basis of this estimate. Please treat this as a starting point, not financial advice.

Frequently Asked Questions

1. How much can I earn from a 1 acre solar plant in India?

With a CUF of around 19% and a tariff of ₹3.5 per unit, a 1 MW plant on 1 acre can generate roughly 1.5 million kWh/year. That works out to around ₹52–53 lakh in annual revenue before costs.

2. What is CUF and why does it matter?

CUF (Capacity Utilization Factor) measures how much energy a plant actually generates versus running at full capacity all year. For solar PV in India, CUF usually falls between 16–22%. Higher CUF = more kWh = more revenue.

3. How much does a 1 MW solar plant generate per year?

A 1 MW plant in India typically generates 1.5–1.7 million kWh per year, depending on sunlight, panel quality and downtime. Our default setting is deliberately conservative.

4. Are these numbers India only?

The defaults are tuned for India, but you can use the calculator anywhere by adjusting CUF, MW per acre and tariff according to your local conditions.

5. Does this include project costs and maintenance?

No. This is a gross income estimate. Net profit will depend on capex, O&M, financing structure and taxes.