The integration of solar power into smart grids leads to potential as well as difficult problems such as grid instability, energy supply imbalances, and inefficient energy distribution due to the complexity and variability of renewable energy sources, as the world shifts towards renewable energy. In order to overcome these obstacles, our study creates a virtual replica, a Digital Twin that simulates the grid and solar power plant components in a virtual environment. For that, we use MATLAB/Simulink and Simscape, which are specifically used to create high-fidelity models of inverters, solar arrays, and interconnection gear. The digital replica is kept closely linked with conditions on-site through the use of data streams. Built-in procedures modify energy dispatch for fedrated learning, to optimize yield, and to stabilize the grid. The Digital Twin system helped us understand the solar power plant's dynamic performance within smart grids by using simulation and analysis tools. Using .mat files, we successfully extracted and analyzed system variables such as solar power, temperature, battery status, and irradiance data for analysis. The time series display of solar generation along with grid power consumption and load requirements revealed different operational behaviors of the system and mismatches under varying conditions. Along with that, actual system analysis was carried out at the component level to examine the patterns of battery charging along with inverter performance and power grid fluctuations and financial operation details. This simulation showed how different irradiance levels impact power generation while displaying the temporal evolution of battery voltages and illustrating the connection between grid power delivery and economic returns. The application of the digital twin has led to a 30% increase in energy production and a 15% improvement in the downtime of resources in the solar power plant. This paper concludes with a staged deployment approach and detailed implementation instructions to provide practitioners with a clear path to more reliable, efficient, and sustainable solar-integrated power systems.