What is On-grid, Off-grid, and Hybrid Solar System
On-grid, off-grid, hybrid solar systems are becoming more popular as more homes and businesses resort to solar energy as a dependable and sustainable power source. With increasing electricity rates and mounting environmental worries, the transition from traditional to renewable energy has never been more critical. Solar panels not only reduce reliance on traditional power networks, but they also help reduce carbon emissions, making them a better and cleaner option for the future.
We’ll explain the distinctions between on-grid, off-grid, and hybrid solar systems, as well as how each works, who they’re most suited for, and how much money you can anticipate saving. From lowering your monthly electricity costs to reaping long-term financial rewards, we’ll examine how solar electricity provides substantial cost savings over conventional energy sources. Regardless of your goals—to reduce energy costs, become completely off the grid, or strike a compromise between the two—this guide will assist you in selecting the best solar solution for your environment.
What is on-grid solar system?
An on-grid solar system (also known as a grid-tied solar system) is a solar power system that is directly linked to the nearby electricity grid.
How on-grid solar system works
- Solar panels generate electricity during the day.
- The electricity is first used to power your home or business.
- Any excess electricity is sent back to the grid, and in many cases, you earn credits or payments through net metering.
- When your panels aren’t producing enough (like at night or on cloudy days), you can draw electricity from the grid.
Components of on-grid solar system
- Solar Panels: Capture sunlight and convert it into direct current (DC) electricity.
- Solar Inverter: Converts DC electricity from the panels into alternating current (AC), which can be used to run household or commercial appliances. Synchronizes the system with the utility grid.
- Mounting Structures: Frames or supports that hold the solar panels in place, usually on rooftops or open ground. Designed for durability and to position panels for maximum sunlight exposure.
- Grid Connection: A bidirectional connection to the local utility grid. Allows excess electricity to be exported to the grid and additional power to be imported when solar is insufficient.
- Net Meter (Bi-directional Meter): Measures the electricity you draw from the grid and the surplus electricity you send back.Helps calculate savings and benefits under net metering policies.
- Wiring & Protection Devices: Safe electrical transmission is ensured by cables, switches, breakers, and protective devices, which also protect the system from failures or surges.

Advantages of on-grid solar system
- Lower Installation Cost: It’s less expensive than off-grid systems because it doesn’t require costly batteries.
- Reduces Electricity Bills: It generates electricity from sunlight, decreasing your reliance on the grid. Surplus electricity can be sent to the grid for credits through net metering.
- Reliable Power Supply: Draw electricity from the grid whenever solar production is insufficient (nighttime or cloudy days).
- Environmentally Friendly: Reduces reliance on fossil fuels and minimizes your carbon footprint.
- Easy Maintenance: Fewer parts than off-grid systems (no batteries), which means less upkeep.
- Scalable System: You can grow the system in future years by adding more panels as your electricity requirements increase.
- Government Incentives: Numerous areas provide tax breaks, subsidies, or other incentives to encourage the installation of on-grid solar systems.
How to install an on-grid solar system at home?
- Assess Your Energy Needs: Examine your electrical invoices to determine your average daily and monthly consumption. This will assist you in deciding the size of the solar system you will require.
- Evaluate Your Roof or Installation Space: A rooftop or open space should receive as much sunshine as possible. Examine the structure’s strength, orientation, and shade.
- Choose the Right Solar Panels and Inverter: Choose premium solar panels and an on-grid inverter that can handle your electrical needs.
- Get Necessary Approvals: Request approval from your local electricity provider or government authority to connect to the grid and use net meters.
- Install Mounting Structures: Install roof-mounted brackets or racks to firmly fix the solar panels at the proper angle.
- Install Solar Panels: For optimal sunlight capture, mount the panels on the buildings and make sure they are aligned properly.
- Connect the Inverter: Connect solar panels to an on-grid converter, which converts DC to AC power for residential usage.
- Connect to the Grid: Connect the inverter to your main power source and grid connection using a bidirectional net meter to monitor power use and excess electricity exported.
- Test the System: Turn the system on and make sure that the panels, inverter, and grid connection are all operating properly.
- Monitor and Maintain: To guarantee optimal performance, clean panels on a regular basis and inspect wiring. If available, use monitoring apps to track performance in real time.
3kw On-grid Solar System Price in India with Subsidy
A 3kW on-grid solar system is an excellent solution for homeowners looking to lower their electricity bills and embrace renewable energy.
A 3 kW on-grid solar system in India, particularly in Kerala, typically costs between ₹1.9 lakh and ₹2.2 lakh before subsidies. With the ₹78,000 government subsidy, the net cost typically ranges from ₹1.11 lakh to ₹1.37 lakh, depending on the vendor, equipment, and other factors. Installation costs vary depending on location, component quality, and service providers.
What is Off-grid PV Solar System?
An off-grid PV (photovoltaic) solar system is a self-contained solar power plant that does not link to the power grid. It uses solar panels to autonomously generate electricity, which is then stored in batteries for usage as needed.
How Off-grid Solar System Works
- Solar Panels: Capture sunlight and convert it into electricity (DC).
- Charge Controller: Regulates the electricity going into the batteries to prevent overcharging.
- Batteries: Store energy for use during nighttime or cloudy days.
- Inverter: Converts DC electricity from panels/batteries into AC electricity for household appliances.
Components of Off-grid Solar System
- Solar Panels
- Charge Controller
- Battery Bank
- Inverter
- Mounting Structures
- Wiring & Protection Devices
Advantages of Off-grid Solar System
- Total independence from grid failures or power cuts.
- Customizable system size based on energy needs.
- Environmentally friendly and reduces reliance on fossil fuels.
How to Install an Off-grid Home Solar System?
- Assess Your Energy Needs: Determine your daily and monthly electricity consumption to figure out the scope of the solar system and battery storage needed.
- Choose the Right Solar Panels and Batteries: Choose superior solar panels and deep-cycle batteries that are ideal for off-grid systems. The battery capacity should be sufficient to meet your power requirements during the night or on cloudy days.
- Pick a Suitable Location: Install the panels in an area with optimum sunshine exposure, free of shade and impediments. Ensure that the roof or ground space is robust enough to support mounting structures.
- Install Mounting Structures: Install brackets or racks to securely hold the solar panels at the proper angle for maximum sunlight absorption.
- Install Solar Panels: Install the panels on the mounting structures and link them to the system wiring.
- Connect Charge Controller and Batteries: Connect solar panels to the charge controller, then to the battery bank to safely store excess energy.
- Connect Inverter: Link the battery bank to an inverter to convert DC electricity into AC for home appliances.
- Test the System: Turn on the system and check all connections, power output, and battery performance.
- Regular Maintenance: Clean panels periodically, check battery levels, and inspect wiring to ensure optimal performance and longevity.
2kw Off grid Solar System Price in India with Subsidy
Off-grid systems are more expensive than on-grid systems since they include batteries and other expensive components (inverter, charge controller, battery bank). Subsidies may not cover the full cost of an off-grid solution. On-grid rooftop solar or grid-connected systems are the subject of several schemes. Subsidies for pure off-grid solutions may be limited.
All things considered, a 2 kW off-grid solar system in Kerala with a high-quality battery, inverter, panels, and installation might cost between ₹1,40,000 and ₹2,30,000 (or more) before subsidies are taken into account. After taking into account any applicable subsidies, the cost may be reduced slightly, although probably not as much as for completely grid-tied systems.
What is Hybrid Solar System?
A hybrid solar system integrates the characteristics of both off-grid and on-grid solar systems. It connects to the electrical grid while also having a battery backup, enabling you to harness solar energy, keep surplus power, and consume from the grid when required.
How Solar Hybrid System Works
A hybrid solar system gives you the flexibility of both battery storage and grid connection by fusing the benefits of an off-grid and on-grid configuration. In a solar hybrid system, solar panels provide electricity during the day, which is then used to power domestic appliances. Any excess energy is saved in batteries for later use, such as at night or during power shortages. If the batteries are completely charged and there is still excess electricity, it can be exported to the grid via net metering. When solar generation and battery backup are inadequate, the system automatically takes power from the grid, maintaining a consistent and dependable power supply.
Hybrid Solar System Components
- Solar Panels
- Hybrid Inverter
- Battery Bank
- Charge Controller (sometimes built into a hybrid inverter)
- Grid Connection
- Mounting Structures
- Wiring & Protection Devices
Advantages of Hybrid Solar System
- Uninterrupted Power Supply: Provides backup during power outages using batteries while remaining connected to the grid.
- Maximum Energy Utilization: Solar electricity is used directly, excess is stored in batteries, and surplus is sent to the grid, guaranteeing that no energy is wasted.
- Lower Electricity Bills: Reduces reliance on the grid by combining solar energy, battery storage, and net metering.
- Energy Independence: Safeguards against fluctuating electricity prices and unstable grid supply.
- Flexibility & Control: Smart inverters enable you to choose whether to use solar, battery, or grid electricity.
- Environmentally Friendly: Reduces carbon footprint by using more renewable energy.
- Scalability: It is simple to expand by adding more panels or batteries as energy requirements increase.
How to Install a Hybrid Solar System for Home?
- Assess Your Energy Needs
- Select the Right System Size
- Site Inspection & Feasibility
- Get Necessary Approvals
- Install Mounting Structures
- Install Solar Panels
- Set Up the Hybrid Inverter & Charge Controller
- Install Battery Bank
- Connect to the Grid
- System Testing & Commissioning
- Monitoring & Maintenance
3kw Hybrid Solar System Price in India
- Pre-Subsidy Price: The cost ranges from ₹2,40,000 to ₹4,50,000, based on component quality and installation requirements.
- Government Subsidy: Under the Central Financial Assistance (CFA) scheme, a fixed subsidy of ₹78,000 is available for 3kW and above systems.
- Post-Subsidy Price: After applying the subsidy, the net cost typically ranges from ₹1,62,000 to ₹3,72,000, depending on the components and installation needs.
What is Grid Tied Hybrid Solar System
A Grid-Tied Hybrid Solar System is a hybrid solar configuration that includes solar power generation, battery storage, and a link to the power grid. It enables households and businesses to get the benefits of renewable energy while still receiving a reliable power supply from the grid.
Difference Between On-grid, Off-grid, and Hybrid Solar Systems
On-Grid Solar System
- Grid Connection: Connected to the electricity grid
- Battery Requirement: No batteries required
- Power Backup: No backup during power cuts
- Energy Export: Surplus electricity can be exported to the grid via net metering
- Cost: Generally lower upfront cost
- Maintenance: Low maintenance
- Best For: Homes/businesses with reliable grid access
Off-Grid Solar System
- Grid Connection: Not connected to the grid
- Battery Requirement: Requires batteries for storage
- Power Backup: Provides full backup
- Energy Export: Excess energy cannot be exported
- Cost: Higher cost due to batteries
- Maintenance: Higher maintenance due to batteries
- Best For: Remote/rural areas without grid access
Hybrid Solar System
- Grid Connection: Connected to the grid
- Battery Requirement: Requires batteries for backup
- Power Backup: Provides backup using batteries, with the grid available as a secondary source
- Energy Export: Surplus energy can be used to charge batteries or exported to the grid
- Cost: Higher than on-grid, lower than off-grid for the same capacity
- Maintenance: Moderate maintenance (batteries + inverter)
- Best For: Areas with unreliable grid or a need for uninterrupted power
Why Neal Solar is the Best Choice for Solar Panel System Installation?
At Neal Solar, the best solar installation company in Kerala, we approach every solar installation project with knowledge, dependability, and creativity. Your solar panel system will be developed, installed, and maintained for optimal efficiency and lifetime by our team of qualified professionals. We employ premium, MNRE-approved solar panels, inverters, and other parts that are customized to your unique energy requirements, whether you have an off-grid, hybrid, or on-grid system.
Book our consultation today to benefit from:
- Customized Solutions: Systems that maximize energy production and savings according to your location, roof type, and usage habits.
- Certified Installation: MNRE-approved installers follow strict safety and quality standards.
- Subsidy Assistance: Guidance on government subsidies, net metering, and approvals to make solar adoption affordable.
- End-to-End Service: From site assessment and design to installation and post-installation support, we handle everything.
Sustainability Commitment: We prioritize eco-friendly methods and solutions that lower your carbon footprint while saving money on electricity.
FAQ
Is Hybrid Solar System Eligible for Subsidy?
Under the Government of India’s Rooftop Solar Programme (Phase II), home grid-connected (on-grid) solar systems are the primary recipients of subsidies.
Hybrid solar systems, which integrate solar panels, batteries, and grid connection, are partially eligible for subsidy—but only the solar panel (PV) and inverter components that are grid-connected fall under the subsidy. Battery storage costs are not covered by subsidies.
Factors to consider for on-grid, off-grid & hybrid solar systems?
When selecting a solar system, consider grid availability, power backup requirements, budget, maintenance, and subsidy eligibility.
On-grid systems are appropriate for urban areas with stable electricity; they are less expensive and eligible for subsidies, but they do not provide backup power during outages.
Off-grid systems are ideal for isolated areas without grid connectivity; they offer complete backup but are more expensive and require more upkeep because of the batteries.
Hybrid systems, which include solar, batteries, and a grid connection, guarantee continuous electricity, low maintenance costs, and partial eligibility for subsidies.
Make your decision based on location, energy requirements, and budgetary concerns to optimize savings and efficiency.