On-grid Solar System Buying Guide
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What is an On-Grid Solar System?
An on-grid solar system, also known as a grid-tied solar system, is a solar power solution that is directly connected to the public electricity grid. It generates clean electricity from sunlight to power your home or business while using the utility grid as a backup whenever solar production is insufficient.
Unlike an off-grid system, an on-grid solar system does not require large battery storage. During the day, solar panels generate electricity to meet your energy needs, and any excess power can be exported to the utility grid through a net metering arrangement (where available). When solar generation is low, such as at night or during cloudy weather, electricity is automatically drawn from the grid.
This makes an on-grid solar system one of the most cost-effective and efficient ways to reduce electricity bills while supporting a cleaner environment.
How Does an On-Grid Solar System Work?
An on-grid solar system operates through a simple and efficient process:
Solar Panels Capture Sunlight
Solar photovoltaic (PV) panels absorb sunlight and convert it into direct current (DC) electricity.
Inverter Converts DC to AC
The solar inverter converts the DC electricity into alternating current (AC), which is used by household and commercial electrical appliances.
Electricity Powers Your Property
The electricity produced by the solar panels is used first to power lights, fans, air conditioners, computers, machinery, and other connected devices.
Excess Energy is Exported to the Grid
If the solar system generates more electricity than your property consumes, the surplus energy is automatically sent to the utility grid through a bi-directional meter (subject to local utility regulations).
Electricity is Imported When Needed
During the evening, cloudy days, or periods of high electricity demand, the system automatically draws power from the utility grid to ensure a continuous electricity supply.
Main Components of an On-Grid Solar System
Solar Panels
Capture sunlight and generate clean, renewable electricity.
Grid-Tie Solar Inverter
Converts DC electricity into AC electricity and synchronizes it with the utility grid.
Net Meter / Bi-Directional Meter
Measures both the electricity imported from and exported to the utility grid.
Mounting Structure
Securely supports the solar panels while maximizing sunlight exposure.
Protection Equipment
Includes circuit breakers, surge protection devices, isolators, and safety switches for reliable and safe operation.
Utility Grid Connection
Provides backup electricity whenever solar production is insufficient.
Advantages of an On-Grid Solar System
Applications
On-grid solar systems are ideal for:
Why Choose an On-Grid Solar System?
An on-grid solar system is the ideal solution for properties with a reliable utility connection that want to reduce electricity costs and make greater use of renewable energy. Since the grid acts as a backup power source, there is no need for large battery storage, making installation more affordable and maintenance simpler.
With high-efficiency solar panels and advanced grid-tie inverters, on-grid systems provide dependable performance, lower operating costs, and long-term financial savings.
Solar Subsidy for On-Grid Solar Systems in India
The Government of India is actively promoting clean and renewable energy through the PM Surya Ghar: Muft Bijli Yojana, which offers financial assistance to eligible homeowners installing on-grid rooftop solar systems. This initiative helps reduce the initial installation cost, making solar energy more affordable while lowering monthly electricity bills.
With an on-grid solar system, homeowners can generate their own electricity, export surplus power to the utility grid through net metering (where available), and significantly reduce their dependence on conventional electricity.
PM Surya Ghar: Muft Bijli Yojana
The PM Surya Ghar: Muft Bijli Yojana is the Government of India's flagship rooftop solar scheme, aiming to encourage residential consumers to install grid-connected rooftop solar systems. Under this program, eligible homeowners receive Central Financial Assistance (CFA) directly into their bank accounts after successful installation and verification by the local DISCOM.
Central Government Subsidy
Eligible residential consumers can receive the following subsidy:
| Solar System Capacity | Central Subsidy |
|---|---|
| 1 kW | ₹30,000 |
| 2 kW | ₹60,000 |
| 3 kW or Above | ₹78,000 (Maximum) |
- 60% of the benchmark cost for systems up to 2 kW
- 40% of the additional benchmark cost for systems between 2 kW and 3 kW
- Maximum subsidy is capped at 3 kW (₹78,000)
Who is Eligible?
You may be eligible for the subsidy if you:
- Own a residential property in India.
- Have a valid grid-connected electricity connection.
- Install an approved on-grid rooftop solar system.
- Use an empanelled vendor approved by your DISCOM or the National Portal.
- Complete installation, inspection, and net metering as required.
Commercial, industrial, and most institutional installations are generally not eligible for this residential subsidy under the PM Surya Ghar scheme.
Benefits of Installing an On-Grid Solar System
How to Apply for the Solar Subsidy
The application process is simple:
Register on the Portal
Register on the official PM Surya Ghar National Portal.
Submit Application
Submit your rooftop solar application and receive approval from your electricity distribution company (DISCOM).
Choose a Vendor
Choose an empanelled solar installation company.
Installation
Install the approved on-grid solar system.
Inspection & Net Metering
Complete inspection and net metering by the DISCOM.
Subsidy Disbursement
After successful verification, the subsidy is transferred directly to your registered bank account through Direct Benefit Transfer (DBT).
Typical Energy Flow
During the Day
- Solar panels generate electricity.
- Appliances are powered directly by solar energy.
- Any excess electricity is exported to the utility grid (where permitted).
During the Night or Low Sunlight
- Solar generation decreases or stops.
- Electricity is automatically supplied by the utility grid.
- Users continue to receive uninterrupted power.
Frequently Asked Questions
In most standard installations, no. For safety reasons, grid-tie inverters automatically shut down during a utility power outage to protect maintenance workers. Backup power during outages requires a hybrid system with battery storage and backup functionality.
Yes. By generating your own electricity, you can significantly reduce the amount of energy purchased from the utility company. In areas with net metering, exported energy may further reduce your electricity costs.
No. A standard on-grid solar system operates without battery storage, making it more affordable than off-grid or hybrid systems.
High-quality solar panels typically have a lifespan of 25-30 years and continue producing electricity efficiently with minimal maintenance.
Maintenance is minimal. Regular cleaning of the solar panels and periodic inspection of the inverter and electrical components help maintain peak performance.
Why Choose Our On-Grid Solar Solutions?
We provide high-performance on-grid solar systems designed to maximize energy production, reduce electricity costs, and deliver long-term reliability. Our solutions include premium solar panels, advanced grid-tie inverters, robust mounting systems, and professional installation tailored to your property's energy requirements.
From system design and installation to testing and after-sales support, our experienced team ensures you receive a safe, efficient, and high-quality solar solution.
Switch to clean solar energy with an on-grid solar system and enjoy lower electricity bills, reliable performance, and a more sustainable future.
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