
On-Grid vs Off-Grid Solar Systems: Which One Should You Choose for Your Home in India?
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In recent years, solar power has become an increasingly popular and eco-friendly source of energy in India. The government of India also started initiatives to adapt solar energy by providing a subsidy through the PM Surya Ghar Muft Bijli Yojna Scheme.
As more people switch to solar energy, it's important to understand the two primary types of solar systems: On-Grid and Off-Grid. Each system has its own set of advantages, and choosing the right one depends on various factors like your location, energy needs, and budget.
At M3 Solar Pvt Ltd, we help homeowners and businesses install the best solar power systems customized to their needs. Whether you’re interested in reducing your electricity bills or making your home more energy-efficient, understanding the difference between On-Grid and Off-Grid solar systems is essential before making a decision.
If you live in a Tier 1 or Tier 2 city and use appliances like an AC, refrigerator, or washing machine during the summer, your monthly electricity bill typically ranges between ₹4,000 to ₹10,000, depending on the number of electronic devices at your home.
For example, if your monthly bill is around ₹7,500, the annual cost would be ₹7,500 x 12 = ₹90,000.
Appliance/Usage | Estimated Monthly Bill | Estimated Annual Bill | Total Annual Cost (₹) |
Tier 1 & Tier 2 Cities | ₹4,000 - ₹10,000 | ₹7,500 (Example) | ₹90,000 (for ₹7,500/month) |
Annual Electricity Cost | ₹90,000 - ₹1,00,000 | ||
Investment Option | Solar System Investment | Lifetime Savings | Potential Long-Term Savings |
That’s nearly ₹1 lakh spent on electricity every year. But what if you could invest that amount in a solar system? With the right solar solution, you could significantly reduce your lifelong electricity bills, leading to even more savings in the long run.
If you’ve already decided to install solar panels, the next step is to choose the right type of solar panel and grid system. In this blog, we've already covered the different types of solar panels. Now, let's focus on the various types of grid systems available for your home.
What is an On-Grid Solar System?
An On-Grid Solar System (also known as a grid-tied system) is connected directly to the electricity grid. This type of system allows you to generate your solar power during the day and feed any extra electricity back into the grid. During the night or cloudy days when solar energy production is low, you draw electricity from the grid.

Benefits of On-Grid Solar Systems:
Cost-Effective: On-grid systems are more affordable as they do not require batteries for energy storage.
Minimal Maintenance: Since it doesn’t rely on battery storage, maintenance is simpler and cheaper.
Grid Dependency: You are still dependent on the grid for power when solar energy is unavailable (during the night or rainy days).
Net Metering: In India, many states allow net metering, which means you can sell excess energy back to the grid and reduce your electricity bill.
When Should You Choose an On-Grid Solar System?
On-grid systems are perfect for homes located in urban and suburban areas with a stable and reliable electricity grid. If you are looking to cut down on your electricity costs and want to take advantage of net metering, an On-Grid solar system is an excellent option.
What is an Off-Grid Solar System?
An Off-Grid Solar System is a completely independent solar power system that is not connected to the electricity grid. It operates using batteries that store excess solar energy generated during the day. This energy is then used to power your home at night or on cloudy days when the solar panels aren’t producing enough electricity.

Benefits of Off-Grid Solar Systems:
Energy Independence: With an Off-Grid system, you are not reliant on the local utility grid for electricity. This is ideal for remote areas with unreliable or no access to the grid.
Reliable Power Supply: Even during power outages, an Off-Grid system will continue to provide electricity, ensuring uninterrupted power supply.
Self-Sufficiency: You become entirely self-sufficient in terms of energy, relying only on the energy produced by your solar panels and stored in your batteries.
When Should You Choose an Off-Grid Solar System?
Off-Grid systems are well-suited for homes in remote or rural areas where grid power is unavailable or unreliable. If you experience frequent power cuts or live in an area with little to no grid infrastructure, an Off-Grid solar system ensures you always have access to power.
Key Differences Between On-Grid and Off-Grid Solar Systems
Aspect | On-Grid Solar System | Off-Grid Solar System |
Connection to the Grid | Connected to the electricity grid. | Completely independent of the grid. |
Energy Storage | Does not require batteries. Excess power is fed to the grid. | Requires batteries to store excess power for use at night or on cloudy days. |
Cost | Less expensive due to the absence of batteries. | More expensive due to the cost of batteries and storage equipment. |
Maintenance | Easier and cheaper maintenance. | Requires more maintenance due to the battery system. |
Reliability | Relies on the grid. Can experience outages if the grid fails. | Provides reliable power even during grid outages. |
Which System is Right for You?
On-Grid Solar System is ideal for homes in urban and suburban locations where grid connectivity is stable and reliable. It is more cost-effective and allows you to take advantage of net metering to sell excess energy back to the grid. If you're looking for a low-maintenance option to reduce your electricity bill and your carbon footprint, an On-Grid system is a great choice.
Off-Grid Solar System is perfect for homes in remote areas where grid access is unreliable or nonexistent. It offers energy independence and ensures a continuous power supply even during power outages. While the initial cost may be higher, Off-Grid solar systems offer long-term reliability, especially in areas with unstable or unavailable grid access.
Conclusion
Choosing between an On-Grid and Off-Grid solar system depends on factors like your location, budget, and energy needs. If you're looking to save on electricity costs and live in an area with a reliable grid, an On-Grid Solar System might be the best fit.
On the other hand, if you reside in a remote area or want total energy independence, an Off-Grid Solar System offers reliability and autonomy.
At M3 Solar Pvt Ltd, we help you choose and install the best solar system for your home. Whether you need an On-Grid system to lower your bills or an Off-Grid system for energy independence, we provide expert installation and support.
Contact us today to learn more about how we can help you harness the power of the sun!
FAQs
1) What is an On-Grid Solar System?
An On-Grid Solar System is connected to the electricity grid. It generates solar power during the day and feeds excess energy back into the grid. At night, or during cloudy days, electricity is drawn from the grid.
2) How Does the Cost of Installation Vary Between On-Grid and Off-Grid Solar Systems?
Off-Grid systems are more expensive to install due to the need for batteries and other storage equipment. On-Grid systems are cheaper as they don’t require batteries and rely on the grid for energy storage.
3) What is a Hybrid Solar System?
A Hybrid Solar System is a combination of both On-Grid and Off-Grid systems. It has a grid connection and a battery storage solution, ensuring a continuous power supply even during grid outages.
4) What is the Difference Between Solar Panels and Solar Grid Panels?
Solar panels, or photovoltaic (PV) panels, are designed to convert sunlight into electricity. Solar grid panels are those that are connected to the electrical grid and don’t require batteries to store energy.
Explore more about solar energy solutions with M3 Solar Pvt Ltd and make an informed decision about your energy future.