Best Guide to Understanding On-Grid and Off-Grid Solar Systems

With India’s ambitious renewable energy goals, solar power has emerged as a leading solution to meet the country’s energy demands sustainably. The government aims to achieve 280 GW of installed solar capacity by 2030, making solar energy more accessible than ever. However, choosing between an on-grid and off-grid solar system is crucial for individuals and businesses investing in solar power. In this guide, we’ll explore the differences between these systems, their advantages, costs, and which one is best suited for different users.

What is an On-Grid Solar System?

An on-grid solar system, also known as a grid-tied system, is directly connected to the government’s electricity grid. This setup allows users to consume solar power during the day while relying on the grid at night or during insufficient sunlight.

How Does an On-Grid System Work?

1. Solar panels generate electricity from sunlight.
2. A solar inverter converts the DC electricity into AC, which is used for household or business needs.
3. Any excess energy is sent to the power grid through a net metering system.
4. At night or on cloudy days, users draw power from the grid, ensuring a continuous supply of electricity.

The Delhi Solar Policy promotes rooftop solar installations under the net metering scheme. A household installing a 5 kW on-grid solar system can save up to ₹50,000 per year on electricity bills.

Advantages of On-Grid Systems:

• Lower upfront cost (no batteries required)
• Reduced electricity bills through net metering
• Low maintenance as the system relies on the grid when needed
• Highly efficient due to direct grid connection

Disadvantages:

• No backup power during outages (depends on grid availability)
• Not suitable for remote areas without grid access

What is an Off-Grid Solar System?

An off-grid solar system operates independently and is not connected to the electricity grid. It relies on battery storage to provide electricity when sunlight is unavailable.

How Does an Off-Grid System Work?

1. Solar panels generate electricity.
2. A charge controller regulates the power flow to prevent battery overcharging.
3. The inverter converts DC electricity to AC for household use.
4. Batteries store excess power for use at night or during power shortages.

In remote villages in Ladakh, where grid electricity is unreliable, off-grid solar systems have enabled households to get a 24/7 electricity supply, reducing reliance on diesel generators.

Advantages of Off-Grid Systems:

• Energy independence with no reliance on the electricity grid
• Uninterrupted power supply, even during grid failures
• Ideal for remote areas where grid connectivity is expensive or unavailable

Disadvantages:

• Higher initial cost due to battery storage
• Regular maintenance required for batteries
• Limited energy storage, requiring careful consumption planning

Suggested Read: Importance of Solar Energy in India: Its Impact and Future Needs

Comparison: On-Grid and Off-Grid Solar Systems

The following table highlights the key differences between the two systems:

Feature	On-Grid Solar System	Off-Grid Solar System
Grid Connection	Yes, connected to the grid	No, operates independently
Energy Storage	No battery required	Requires battery storage
Electricity Cost Savings	High, due to net metering	Moderate, depends on battery efficiency
Backup During Outages	No, stops working if the grid fails	Yes, continuous supply from batteries
Ideal For	Cities, businesses, and homes with stable grid connectivity	Remote areas, farms, and locations with unreliable electricity supply
Initial Cost	Lower (₹50,000 – ₹1,00,000 for 3 kW)	Higher (₹1,00,000 – ₹2,00,000 for 3 kW with batteries)
Maintenance	Low	Moderate to high due to batteries

Government Incentives & Policies in India for On-Grid and
Off-Grid solar systems

The Indian government offers various schemes to promote solar adoption:

1.Subsidies for On-Grid Solar Systems:

• The Ministry of New and Renewable Energy (MNRE) offers subsidies of up to 40% for residential rooftop solar installations.
• Many state governments provide additional incentives.

2.Support for Off-Grid Solar Systems:

• The PM-KUSUM scheme provides financial aid to farmers for installing solar-powered irrigation pumps.
• Rural electrification programs support off-grid solutions in remote areas.

Future of Solar Power in India

As solar technology advances, hybrid solar systems (a combination of on-grid and off-grid) are becoming popular. These systems use batteries while remaining connected to the grid, offering both reliability and cost savings. The Indian solar industry is expected to reach 500 GW capacity by 2030, making solar energy an integral part of the country’s power supply.

Conclusion: On-Grid and Off-Grid solar systems

Both on-grid and off-grid solar systems have their unique benefits and challenges. If you live in a city with stable grid power and want to save on electricity bills, an on-grid system is ideal. If you live in a remote area with unreliable grid access, an off-grid system ensures energy independence. Investing in solar energy is a step towards a sustainable future, reducing carbon footprints and supporting India’s renewable energy mission.

FAQs

1.Which solar system is better: on-grid or off-grid?

It depends on your needs. On-grid is best for cost savings in urban areas, while off-grid is ideal for remote locations.

2.How much does a 5 kW solar system cost in India?

An on-grid system costs around ₹2.5 lakh, while an off-grid system with batteries costs around ₹4 lakh.

3.Do off-grid solar systems work in monsoon or cloudy weather?

Yes, but battery storage is essential to ensure power availability during low sunlight conditions.

4.Can I switch from an on-grid to an off-grid system later?

Yes, but it requires adding batteries and a charge controller, increasing the cost.

5.Are there tax benefits for installing solar systems in India?

Yes, businesses can claim accelerated depreciation benefits, and homeowners get subsidies under MNRE policies.