On-grid Solar System Buying Guide.

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*Please Note: The on-grid solar plant prices listed above are indicative as of 22nd April 2026 for SolarSquare Blue 6ft variant. The final on-grid solar system cost in India depends on your city, DISCOM charges, product variant opted for, panel type, system capacity, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc. Also, prices are subject to change without prior notice.

Ready to explore the workings of an off-grid solar system, all the price details, and whether you need to invest in off-grid solar products as an Indian homeowner, especially because the Indian government offers a subsidy for the installation of an on-grid rooftop solar system? Dive in for all the details!

 

What is an On-Grid Solar System?

An on-grid solar system (also called a grid-tied system) is connected directly to the main electricity grid. It allows your home to use solar power during the day while drawing electricity from the grid when needed—ensuring a seamless and cost-effective energy solution.

At Amaara Solar, our on-grid systems are designed to maximize savings while keeping your energy supply reliable and efficient.

Government Subsidy Benefits

One of the biggest advantages of installing an on-grid solar system is the government subsidy available for homeowners.

  • Save between ₹30,000 to ₹78,000 based on system size
  • Reduce your upfront investment significantly
  • Faster return on investment

On-Grid Solar System Pricing (India)

The cost of an on-grid solar system varies depending on your location, electricity tariffs, and system capacity.

Indicative pricing with subsidy:

  • 3 kW system (Bhopal): Approx. ₹1.42 Lakhs*
  • 5 kW system (Bengaluru): Approx. ₹2.97 Lakhs*

*Prices are indicative and may vary based on site conditions and component selection.

How Does an On-Grid Solar System Work?

  1. Sunlight Absorption Through Solar Panels — Your on-grid solar panels absorb sunlight and convert it into DC electricity through the photovoltaic effect.
  2. String Aggregation Through a Combiner Box — Power from multiple panel strings is consolidated safely before reaching the inverter.
  3. DC-to-AC Conversion and Grid Synchronisation — The on-grid inverter converts DC power into AC power precisely matched to the grid’s voltage and frequency, allowing it to feed seamlessly into your home’s electrical system and the wider grid.
  4. Direct Home Consumption — Your appliances draw power directly from the solar-generated electricity first, before pulling anything from the grid.
  5. Net Metering and Export — Any surplus power your system generates beyond your immediate household use is automatically exported to the grid, and recorded by the net meter as a credit against your bill.
  6. Grid Draw When Needed — At night, on cloudy days, or whenever your consumption exceeds what your panels are generating, your home draws power from the grid as normal, offset by the credits you’ve built up from earlier exports.

Advantages and Disadvantages of On-Grid Solar Systems in Hyderabad

Advantages:

  • Lower upfront cost than off-grid or hybrid systems, since no battery bank is required
  • Eligible for government solar subsidy, unlike off-grid systems
  • Shorter payback period in most cases, thanks to subsidy support and net metering credit for surplus generation
  • Simpler system with fewer components to maintain compared to off-grid or hybrid setups

Disadvantages:

  • No power backup during grid outages — as a safety requirement, on-grid inverters shut down automatically when the grid goes down
  • Savings depend on your local utility’s net metering policy and tariff structure, which can change over time
  • Not suitable for properties without reliable grid access to begin with

An on-grid solar system is also known as a grid-tied system since it is connected to the main utility grid. One of the best things about installing on-grid solar at home is the subsidy you get. The Indian government offers homeowners a subsidy for installing a rooftop on-grid solar system ranging between Rs. 30,000 and Rs. 78,000 (depending upon the installed system capacity).

The on-grid solar system price varies from city to city and, of course, depends on the size of the system. Let’s give you a price demonstration from two different cities (one from North India and one from South India) to give you an idea about the on-grid solar system cost:

  • 3 kW on-grid solar system price in Bhopal with subsidy: ~ Rs. 1.42 lakh
  • 5 kW on-grid solar system price in Bengaluru with subsidy: ~ Rs. 2.97 lakh

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