On Grid Solar System: Prices, Subsidy, ROI & Working
Imagine a world where your electricity meter spins backward, and your monthly power bill shrinks to almost nothing. This isn’t a fantasy—it’s the reality for thousands of homeowners across India who have embraced the power of on-grid solar systems.
At Solar Solex, we specialize in making this vision a seamless reality. An on-grid or “grid-tied” solar system is the most popular and affordable choice for residential customers in India with a reliable grid connection. It’s a smart, efficient, and cost-effective way to generate your own clean energy, significantly reduce your electricity bills, and contribute to a sustainable future.
We’re more than just a solar installation company. We are a dedicated partner committed to providing a transparent, end-to-end solar journey. Our services are designed to offer you peace of mind and maximize your savings.
- Customized Solutions: We conduct a thorough rooftop assessment to design a system that perfectly matches your home’s energy consumption and available space.
- High-Quality Components: We use only top-tier components, from high-efficiency solar panels to durable mounting structures, ensuring your system performs optimally for decades.
- Seamless Process: From initial consultation and system design to handling all paperwork for net metering and subsidy applications, we manage every step of the process for you.
- Flexible Financing: We offer a range of financing options, including easy loan approvals and zero-cost EMI schemes, to make your investment affordable and manageable.
- Post-Installation Support: Our commitment doesn’t end with the installation. We offer comprehensive after-sales care and a dedicated support team to assist you.
The beauty of an on-grid solar system lies in its elegant simplicity and intelligent connection to the main electricity grid. Think of the grid as a massive, shared battery that never runs out. This is how it works:
- Solar Generation: During the day, your rooftop solar panels absorb sunlight and convert it into Direct Current (DC) electricity.
- Conversion: This DC power flows into a solar inverter, the brain of the system. The inverter seamlessly converts the DC power into Alternating Current (AC) electricity, the usable form of power for all your home appliances.
- Real-time Consumption: The AC power from the inverter first powers your home’s lights, fans, and appliances.
- Net Metering: This is where the magic happens. A special bi-directional meter (also known as a net meter) is installed at your home. When your solar panels generate more electricity than you consume, this surplus energy is automatically sent back to the grid. The meter records this exported energy, giving you credits.
- Drawing from the Grid: At night or on a cloudy day when your solar production is low, your home automatically draws power from the grid. The bi-directional meter records this imported electricity.
- The Final Bill: At the end of the billing cycle, you are only charged for the “net” difference between the electricity you imported from the grid and the credits you earned by exporting to it. In many cases, this can result in a bill of zero or even a credit balance!
This clever exchange of electricity is known as net metering, a core principle that makes on-grid solar systems so effective and affordable.
Every on-grid system is built on a foundation of carefully selected components that work in harmony:
- Solar Panels: The most visible part of your system. We use high-efficiency monocrystalline panels that are designed to withstand Indian climate conditions and deliver robust performance for over 25 years.
- Solar Inverter: This is a crucial component that converts DC power to AC power. We use advanced inverters with a high conversion efficiency and built-in safety features like Anti-Islanding Protection, which automatically shuts down the system during a power outage to prevent accidental electrocution of utility workers.
- Mounting Structures: These are the unsung heroes of your system. Our prefabricated mounting structures are made from high-grade, hot-dip galvanized steel, ensuring they are rust-proof and strong enough to withstand cyclonic wind speeds.
- Bi-Directional Meter: This smart meter is essential for tracking both the energy you consume and the surplus you send back to the grid, enabling the benefits of net metering.
- Safety Accessories: A complete system includes vital components like AC/DC combiner boxes, earthing strips, and lightning arresters to ensure maximum safety and protect your investment.
An on-grid solar system is not just an expense; it’s a smart, long-term investment with a fantastic return.
Government Subsidy: PM Surya Ghar Muft Bijli Yojana
The Government of India is actively promoting residential rooftop solar with the PM Surya Ghar: Muft Bijli Yojana. This landmark scheme offers significant financial support to homeowners.
- For 1-2 kW systems: You are eligible for a subsidy of ₹30,000 to ₹60,000.
- For 2-3 kW systems: You can get ₹60,000 to ₹78,000 in subsidy.
- For systems above 3 kW: A flat subsidy of ₹78,000 is available.
Return on Investment (ROI)
The absence of expensive batteries makes on-grid systems the most affordable solar option. This translates to a rapid ROI, with most systems paying for themselves in just 3-5 years. After this period, the electricity generated by your system is essentially free, providing you with significant savings for the next 20+ years. As electricity tariffs continue to rise by 3-5% annually, your savings will only grow over time.
For example, a 5 kW on-grid solar system can generate approximately 7,000 units of electricity per year. At an average tariff of ₹8 per unit, this means a saving of around ₹56,000 per year. With a typical system cost of around ₹2.80 lakhs (after subsidy), you can recover your investment in roughly 5 years, and save over ₹11 lakhs in the system’s lifetime!
Here’s a quick look at the average electricity generation and potential savings for different system sizes:
System Capacity
Avg. Units Generated/Year
Avg. Monthly Savings
Potential Lifetime Savings (25 yrs)
1 kW
1,400 units
~₹930
₹2,32,500
2 kW
2,800 units
~₹1,860
₹4,65,000
3 kW
4,200 units
~₹2,800
₹7,00,000
5 kW
7,000 units
~₹4,600
₹11,50,000
10 kW
14,000 units
~₹9,200
₹23,00,000
Please note: These are estimated savings based on an average electricity tariff of ₹8 per unit. Actual savings will vary based on your location, consumption patterns, and local tariff rates.
The one key difference to remember is that an on-grid system, by design, will shut down during a power cut. This is a crucial safety feature called Anti-Islanding Protection, which prevents the system from feeding electricity back into a dead grid, protecting linemen working to restore power.
Q1. What is an on-grid solar system?
A. An on-grid solar system is a solar power solution that is directly connected to the local electricity grid. It allows you to use the energy you generate while also drawing from or exporting to the grid as needed, utilizing a bi-directional meter.
Q2. How does net metering work?
A. Net metering is a billing mechanism that tracks the energy you import from and export to the grid. When your solar panels produce more electricity than you use, the excess is sent to the grid, and you receive credits on your bill. When you need more power than your panels generate (e.g., at night), you use the banked credits to offset your consumption.
Q3. Which is better for me: on-grid or off-grid?
A. If you live in an urban or semi-urban area with a reliable grid connection, an on-grid system is almost always the best and most cost-effective choice. It's affordable, low-maintenance, and offers a fast return on investment. If you live in a remote location with frequent or prolonged power cuts and no grid connection, an off-grid system is the ideal solution for energy independence.
Q4. What are the different types of solar panels, and which one is best for my home?
A. There are primarily three types of solar panels used for residential installations in India:
Polycrystalline Panels: These are the most common and cost-effective option. Made from multiple silicon crystals, they have a bluish, speckled appearance and an efficiency of 15-17%. They are a great choice if you have a large rooftop and are working with a budget.
Monocrystalline Panels: Known for their high efficiency (19-22%), these panels are made from a single, pure silicon crystal. They have a sleek, uniform black appearance and require less space to generate the same amount of power. They are ideal for homes with limited rooftop area or for those who want to maximize their energy output.
PERC (Passivated Emitter and Rear Cell) Panels: This is an advanced version of monocrystalline panels with an extra layer that improves light absorption. PERC panels perform exceptionally well in low-light and high-temperature conditions, making them a premium choice for the Indian climate.
We will help you determine the best panel type for your specific needs, considering factors like your budget, available roof space, and energy requirements.
Q5. What is the role of the solar inverter, and is it a crucial component?
A. Yes, the solar inverter is one of the most critical components of your on-grid system. Its main function is to convert the Direct Current (DC) electricity generated by your solar panels into Alternating Current (AC) electricity, which is the type of power that all your household appliances and the national grid use. Without a reliable inverter, the energy produced by your panels would be unusable. Modern inverters also act as the "brain" of the system, providing real-time monitoring of your system's performance and ensuring safety with features like Anti-Islanding Protection.
Q6. What is a bi-directional meter, and who installs it?
A. A bi-directional meter is a smart device that tracks the flow of electricity in two directions: the power you consume from the grid and the excess power you export to the grid. It is an essential component for the net metering process. Once your solar system is installed, your local distribution company (DISCOM) is responsible for replacing your old, single-directional meter with a new bi-directional one. We at Solar Solex handle all the necessary applications and paperwork with the DISCOM to ensure this process is completed smoothly and efficiently.
