Utility-scale solar: the complete guide to large-scale solar power projects

What is a utility-scale solar project? Definition and overview

Utility-scale solar refers to large-scale solar power plants designed to feed directly into the power grid.

Unlike residential and commercial systems focused on offsetting localized energy usage, these projects are designed to operate more like traditional power plants. Their objective is to deliver a clean, reliable, and high-volume alternative to fossil fuels – scalable across sizeable districts or regions.

What does utility scale mean?

Key characteristics that define utility-scale solar farms include significant physical footprints, high-capacity output, and grid-scale interconnection.

For example, one of the largest operational solar farms in the US, Topaz Solar Farm in California, spans 4,700 acres and generates over 550 megawatts; enough to supply approximately 160,000 California homes.

Looking to the future, the Mammoth Solar project in Indiana is projected to be the largest utility-scale solar farm in the Western hemisphere upon completion, with a site area of 13,000 acres and enough capacity to power 200,000 homes.

Understanding utility-scale solar size and specifications

The Topaz Solar Farm and Mammoth Solar projects are examples of utility solar on the largest scale; however, the typical size and capacity range is broad.

While there is no single universal threshold, utility-scale solar is typically accepted to start at a minimum of 1 MW of generating capacity.

Projects operating above 500 MW capacity typically garner the most media attention, and there is an increasing number of international super plants far exceeding even one gigawatt (such as the Golmud Solar Park in China, with a total capacity of 2.8 GW).

However, most of the 6700+ utility-scale solar plants in the US fall within a more modest 1 to 10 MW range.

The land space-to-power output ratio depends on a range of factors, including panel efficiency, topography, and racking configuration. Generally, anywhere from 5-10 acres of space is required per megawatt of capacity.

As such, a minimum of 10 acres of land is considered the industry standard to generate enough energy, and with enough space for supplementary infrastructure, to be considered of utility scale. Meanwhile you could expect a 100-MW solar farm to occupy anywhere from 600 to 1000+ acres.

Types of utility-scale solar plants

Utility-scale solar projects can be deployed across a range of environments and land uses.

While ground-mounted solar farms remain the norm, the industry has evolved to include different types of solar plant solutions, including water-based solutions and dual-use facilities that maximize environmental cohesion.

What is considered utility-scale solar

As mentioned above, utility-scale solar is defined by its role in the power system rather than any one universal capacity/size threshold.

Participation in the wholesale electricity market is largely defined by the ability to support grid-level planning, alongside alignment with regional procurement strategies.

Still, there are several broad criteria that separate utility-scale projects from commercial or distributed solar.

Utility-scale solar cost analysis and economics

Evaluating utility-scale solar economics requires a detailed look at both upfront capital costs and ongoing operational expenses, which together determine the levelized cost of energy (LCOE) and long-term project returns.

Cost of utility-scale solar per kWh

Utility-scale solar continues to be one of the lowest-cost sources of new electricity generation in the U.S. Despite the political uncertainty related to the future of solar and wind tax credits, research from Lazard has found solar projects deliver a lower levelized cost of electricity (LCOE) even without subsidies.

The industry-wide study found that unsubsidized utility-scale solar cost per kWh delivered an LCOE of between $0.038 and $0.078. Compare this to natural gas plants operating at an LCOE of $0.138 to $0.262 per kWh, and the value proposition of large-scale solar is clear.

The LCOE, which is a measure of lifetime costs divided by energy production, continues to benefit from a downward trend in foundational costs, as well as relatively low operations and maintenance costs compared to other alternatives.

Though it is important to note that an optimized site location and design plays a major role in LCOE, and so returns can vary significantly by project.

Capital expenditure (capex) components

Major upfront costs for a utility-scale solar farm include land acquisition, solar infrastructure, installation and construction, and grid connection.

Once a suitable site has been acquired, solar modules, inverters, and mounting systems comprise the largest share of CAPEX at 40-50%. The declining price of solar modules over the past decade has been a major driver of overall cost reductions.

Installation costs follow, accounting for about 20% of CAPEX, depending on project size and local labor rates.

Grid connection and infrastructure costs can also vary significantly depending on region, with areas operating on an aging or congested grid representing a particular challenge. You can expect the cost of plugging into the regional supply to range anywhere from 5-10%+ of total CAPEX.

Operational expenditure (opex) considerations

Compared to other forms of power generation, solar offers relatively low operational expenditure (OPEX) with limited moving parts and fuel costs. Primary costs include maintenance and monitoring, performance optimization, insurance, and regulatory compliance.

OPEX for plant maintenance includes routine inspection, cleaning, and repairs. An efficient monitoring plan can help keep costs down by sourcing and fixing issues before they become major problems down the line.

Maximizing annual energy production (AEP) ensures long-term profitability. Implementing future-oriented technologies such as drone-based inspection, thermographic imaging, predictive maintenance, and analytics software can all help lower OPEX costs and boost revenue in the long-term.

Finally, compliance with state and federal regulations, as well as insurance for general liability, business disruption, and environmental factors, can also represent a sizeable percentage of a site’s annual OPEX.

Utility-scale solar project development process

Developing a utility-scale solar project is a complex, multi-phase process that moves from early feasibility and permitting through financing, construction, and grid-connected operation - successful only with the support of a broad network of stakeholders.

What is a utility-scale solar project: development phase

To bring a utility-scale solar farm from concept to operation, developers guide the project through several key development phases, from scouting land to connecting with the grid.

• Site selection and feasibility studies: Identify suitable land, assess solar resource and infrastructure, and run yield/cost modelling.

• Permitting and regulatory approval: Secure land-use permissions, environmental reviews, grid‐interconnection applications, and local regulatory clearances.

• Financing and investment considerations: Arrange project financing, negotiate offtake or power-purchase agreements (PPAs), and commit capital.

• Construction and commissioning: Build the solar farm, complete grid tie-in, test systems, and achieve commercial operation.

For a more detailed breakdown, see our dedicated guide on the process of establishing a solar farm.

Key stakeholders in utility-scale solar projects

Utility-scale solar development involves bringing together a wide network of organizations and stakeholders, each essential to developing a project from concept to commercial viability.

Utility-scale solar farms: design and engineering

The process of capturing sunlight and converting it into energy that can be used by the wider grid begins in the solar field.

PV modules, mounted on fixed-tilt or tracking structures, capture the sun to generate DC electricity. These are then typically routed through combiner boxes and delivered to inverters, which convert DC to AC that the wider grid can use.

On-site substations, protection relays, step-up transformers, and other grid interconnection equipment ensure compliance with utility standards for power quality, reliability, and safety, before electricity is sent to where it’s needed.

Behind the scenes, an interconnected network of monitoring and control systems, including weather sensors, performance monitors, and SCADA systems, ensure everything is running as it should for optimal energy generation.

Site design considerations

When designing a site for utility-scale solar, there are, of course, several important factors that need to be taken into consideration. Some of the most important include:

• Optimal layout and spacing: Whether using fixed or tracking solar arrays, ensuring panels are arranged to maximize sun exposure while still providing appropriate maintenance access is crucial.

• Environmental impact mitigation: Considerations can include wildlife buffers, erosion control, and stormwater planning, with the aim of fostering a harmonious relationship between solar and land.

• Grid integration requirements: Before finalizing site design, it is important to understand the grid capacity data and specific requirements of the local grid.

• Future expansion capabilities: Room for additional arrays or storage capacity is often planned in advance to facilitate cost-effective expansion later down the line.

For a more comprehensive overview, see our guide on the basics of building a solar farm at scale.

Benefits and advantages of utility-scale solar

Future trends in utility-scale solar development

Technology advancements are consistently setting new benchmarks for utility-scale solar performance and efficiency. Next-generation tandem cells that combine multiple cell layers are expected to deliver efficiencies of 33% and up, setting unprecedented new standards.

The trend in integrated energy storage is also shifting from a nice-to-have to a core design element. Hybrid PV+storage systems are becoming essential for addressing midday oversupply, which has long been a major drawback of utility-scale solar.

Simultaneously, digitalization and grid intelligence in the form of advanced SCADA, AI-based forecasting, and predictive maintenance are lowering O&M costs and optimizing up-time.

The result is a new generation of utility-scale solar projects that are smarter, more flexible, and better aligned with the needs of the nation.

Market growth projections and opportunities

• The IEA expects that by 2030, the installed capacity of both utility-scale and distributed photovoltaic (PV) systems could nearly quadruple from ~917 GW to ~3,467 GW (accounting for 80% of the growth in renewable energy capacity).

• Several states, particularly Texas, continue to lead the domestic growth trajectory: Texas accounted for roughly 27% of U.S. solar capacity added in H1 2025 (~3.2 GW) and expects another ~9.7 GW in H2.

• The Renewable Energy Policy Network (IRENA) estimates that global solar PV will require investment on the order of $1.5 trillion per year until 2030 to achieve the targets for tripling clean-power capacity; solar PV is the only major technology on track to receive investment at that scale.

• A market-size projection from Verified Market Research puts the global utility-scale solar market at USD 66.04 billion in 2023 and forecasted to grow to USD 94.03 billion by 2030, representing a compound annual growth rate (CAGR) of about 6.3%.

These projections highlight both the scale of opportunity and the urgency of execution.

For developers, investors, and EPCs, such numbers underscore the fact that solar (and in particular, large-scale solar) is not just a niche growth segment, but a major industrial-scale shift in the power sector.

How PVcase supports utility-scale solar projects

PVcase streamlines utility-scale solar development with holistically integrated design, optimization, and collaboration tools made to accelerate project timelines and maximize yield.

Success stories and case studies

From optimizing site selection (BlueWave) to achieving 80% faster design processes (Zimmerman) and cutting solar project development time by 50% (New Leaf Energy), the proof is in the outcomes.

Read all PVcase success stories here.

Conclusion: the future of utility-scale solar power

Utility-scale solar is rapidly evolving from a fast-growing corner of the renewable sector into an indispensable pillar of modern energy infrastructures.

With accelerating technology improvements, deeper storage integration, smarter digital tools, and broadening global acceptance, solar is positioned to deliver cleaner, more reliable, and increasingly cost-competitive power on a massive scale.

The projects being built today are more efficient, more grid-responsive, and more financially resilient than those of just a few years ago, and that trend is only set to continue.

As utilities, developers, policymakers, and communities work together to modernize the grid and streamline deployment, utility-scale solar will play a defining role in decarbonization and long-term energy security for years to come.