On-Grid Solar System Buying Guide: Prices, Subsidy, Advantages, and Disadvantages
An on-grid solar system is one of the most popular solar solutions for homes and businesses because it works directly with the local electricity grid. It helps reduce monthly electricity bills while allowing you to use grid power whenever solar production is low.
Request a Free Solar Consultation Now
Take the first step towards affordable and sustainable energy solutions
What is an On-Grid Solar System?
An on-grid solar system is connected to the utility grid. During the day, solar panels generate electricity for your home or office. If the system produces more electricity than you need, the extra power can be exported to the grid through net metering.
At night or during cloudy weather, electricity can be imported back from the grid when solar production is low.
This makes on-grid systems a practical and cost-effective option for most urban homes.
Main Components of an On-Grid Solar System
An on-grid solar setup generally includes:
- Solar panels
- Solar inverter
- Mounting structures
- AC and DC cables
- Combiner boxes
- Earthing system
- Net meter
- Safety equipment
Each component plays an important role in ensuring smooth energy generation and safe operation.
Approximate On-Grid Solar System Prices in India
The cost of an on-grid solar system depends on the system size, panel quality, inverter type, rooftop condition, and installation requirements.
Typical price ranges are:
- 1 kW system: around ₹70,000 to ₹90,000
- 2 kW system: around ₹1.2 lakh to ₹1.5 lakh
- 3 kW system: around ₹1.8 lakh to ₹2.2 lakh
- 5 kW system: around ₹2.8 lakh to ₹3.8 lakh
- 10 kW system: around ₹5 lakh to ₹7 lakh
Prices may vary depending on the city, brand, and subsidy availability.
Government Subsidy for On-Grid Solar Systems
The Indian government offers subsidies for residential rooftop solar installations under approved schemes.
The subsidy amount usually depends on the system size:
- Up to 2 kW: subsidy available for a significant portion of the project cost
- 2 kW to 3 kW: additional subsidy may apply
- Above 3 kW: fixed subsidy limit based on government rules
Subsidies are generally available only for residential systems and only when installation is completed through approved vendors.
Before purchasing, it is important to confirm the latest subsidy structure and eligibility criteria in your state.