Utility-Scale Solar

Utility-Scale Solar

Utility-scale solar refers to large solar photovoltaic power plants that sell electricity directly to the electric grid at wholesale prices. In the US, utility-scale solar is generally defined as projects larger than 1 megawatt (MW) in capacity, though the term is most commonly associated with projects of 10 MW and above.

Utility-scale solar has become the lowest-cost source of new electricity generation in most sunny markets globally, with installed costs falling from over $5/W in 2010 to $0.80–$1.20/W in 2024 for US projects.

Scale and Land Requirements

Utility-scale solar projects range from:
- Small utility: 1–10 MW (5–70 acres)
- Medium utility: 10–100 MW (70–700 acres)
- Large utility / solar farm: 100 MW–1 GW (700–7,000+ acres)
- Hyperscale: 1 GW+ (Bhadla Solar Park in India: 2,245 MW on ~10,000 acres)

Land requirement: Approximately 5–10 acres per MW (varies with technology, spacing, terrain).

Key Characteristics

Direct grid injection: Power is sold directly to utilities, grid operators, or large commercial offtakers through Power Purchase Agreements (PPAs) or merchant market sales.

Single-axis tracking: The vast majority of new US utility-scale installations use single-axis trackers, which increase production 15–25% with minimal additional cost.

Bifacial modules: Standard for new utility-scale projects, capturing additional rear-side irradiance.

Battery storage: Increasingly co-located with solar to shift production to evening peak demand hours and improve grid stability.

Development Timeline

Utility-scale projects typically take 3–7 years from site identification to commercial operation, including land acquisition, interconnection studies, environmental permitting, financing, and construction. Interconnection queue delays in congested grid areas (particularly MISO and PJM) have extended development timelines significantly in recent years.