On Grid vs Off Grid vs Hybrid Solar System — The Definitive India Guide
This is the most important decision when going solar. Get it wrong and you either overpay by ₹1–3 lakh or end up without backup during power cuts. Here's a complete breakdown for Indian conditions.
Quick Summary
| Feature | On Grid | Off Grid | Hybrid |
|---|---|---|---|
| Battery Required | No | Yes | Yes (smaller) |
| Grid Connection | Yes | No | Yes |
| Power During Cuts | No ❌ | Yes ✅ | Yes ✅ |
| Net Metering | Yes ✅ | No ❌ | Yes ✅ |
| Relative Cost (3kW) | ₹1.5–2.0 lakh | ₹2.5–3.5 lakh | ₹2.0–3.0 lakh |
| Subsidy Eligible | Yes ✅ | No ❌ | Partial ✅ |
| Best For | Grid-stable areas | Remote/no grid | Urban + cuts |
On-Grid Solar System (Grid-Tied)
How It Works
Your solar panels generate DC electricity → on-grid inverter converts to AC → powers your home → excess sent to grid via net metering → you earn credits on your electricity bill.
When solar generation is less than your consumption (nights, cloudy days), the grid supplies the deficit automatically.
Key Advantage: Net Metering
Export surplus electricity and import at night. Your DISCOM's meter spins backward (or a bidirectional meter records imports/exports separately). At month-end, you pay only the "net" units consumed. In sunny months, your bill can go to ₹0 or even earn a small credit.
Critical Limitation: No Backup
On-grid inverters automatically shut down during power cuts. This is an international safety standard (anti-islanding) to protect grid workers. So if your area has 4-hour daily power cuts, your solar system sits idle during those cuts too — even when the sun is shining.
Who Should Choose On-Grid
- Areas with reliable grid supply (less than 1 hour/day cuts)
- Urban metros — Mumbai, Bangalore, Pune, Chennai (minimal cuts)
- Businesses where battery maintenance is a concern
- When budget is tight — lowest upfront cost + maximum subsidy
On-Grid Inverter Brands in India (2026)
- Sungrow (China/India): Best value, widely used, 10-year warranty
- SMA (Germany): Premium, reliable, 5-year standard + 5 optional
- Growatt (China): Budget-friendly, improving quality
- Fronius (Austria): Premium monitoring, expensive
- Havells, Luminous (India): Local brands, good service network
Off-Grid Solar System
How It Works
Solar panels → charge controller → battery bank → off-grid inverter → your home. No grid connection at all. The battery stores excess daytime energy for night use.
Battery Sizing Is Critical
For an Indian home consuming 10 units/day, a typical off-grid system needs:
- Solar panels: 3–4 kW (to charge batteries + meet daytime load)
- Battery: 10–15 kWh (2-3 days autonomy during cloudy/monsoon periods)
- Lead-acid: ₹80,000–1,20,000 for 10 kWh (needs replacement every 4–5 years)
- Lithium (LFP): ₹1,50,000–2,00,000 for 10 kWh (10+ year life)
Who Should Choose Off-Grid
- Remote areas with no grid access (villages, farms, forest areas)
- Areas with 8+ hours of daily power cuts
- Telecom towers, remote monitoring stations
- Farm pumps under PM-KUSUM where grid is unreliable
- Resorts, homestays in hilly/coastal areas
Important: Off-grid systems are NOT eligible for PM Surya Ghar Yojana subsidy (which requires grid connection + net metering).
Hybrid Solar System (Best of Both Worlds)
How It Works
Solar panels → hybrid inverter → battery bank AND grid connection. The hybrid inverter manages all three sources intelligently:
- Solar powers loads first
- Excess solar charges battery
- Battery runs home during power cuts
- If battery low + no solar, grid charges battery and powers home
- When battery full + surplus solar, exports to grid for net metering credit
Why Hybrid Is Most Popular in India (2025-26)
India's electricity infrastructure has improved but power cuts remain common in tier-2/3 cities, small towns, and semi-urban areas. Hybrid gives you:
- Backup during power cuts ✅
- Net metering earnings ✅
- PM Surya Ghar Yojana subsidy eligibility ✅ (the system is grid-connected)
- Smaller battery than off-grid (typically 5–10 kWh vs 10–20 kWh for off-grid)
Hybrid System Cost (2026)
| System Size | Without Battery | With 5kWh LFP Battery | With 10kWh LFP Battery |
|---|---|---|---|
| 2 kW | ₹1.0–1.3 lakh | ₹2.0–2.5 lakh | ₹2.8–3.5 lakh |
| 3 kW | ₹1.3–1.7 lakh | ₹2.5–3.0 lakh | ₹3.2–4.0 lakh |
| 5 kW | ₹2.0–2.5 lakh | ₹3.5–4.5 lakh | ₹4.5–5.5 lakh |
| 10 kW | ₹3.5–4.5 lakh | ₹6.0–7.5 lakh | ₹7.5–9.0 lakh |
Top Hybrid Inverter Brands in India
- Sungrow SH Series: Best value, excellent monitoring app, widely available
- Growatt MIN TL-XH: Budget hybrid, improving quality, good for smaller homes
- Deye (China): Popular with installers, good features at mid-range price
- SMA Sunny Boy Storage: Premium, German quality, expensive
- Luminous NXG Pro: Popular Indian brand, good service network
- Eastman (India): Rising Indian brand, competitive pricing
Which System Should You Choose?
Choose On-Grid if:
- You're in a metro city with stable grid (Mumbai, Bangalore, Pune, Chennai)
- Budget is the primary constraint
- You want maximum subsidy benefit
- Power cuts are rare (less than 30 min/day on average)
Choose Hybrid if:
- You have 2–6 hours of daily power cuts
- You have critical loads (home office, medical equipment, refrigerator must stay on)
- You're in a tier-2/3 city, small town, or semi-urban area
- You want future-proofing (can add more batteries later)
- This is the best choice for most Indian homes in 2026
Choose Off-Grid if:
- No grid electricity available at your location
- Grid is available but extremely unreliable (8+ hours daily cuts)
- You want 100% energy independence regardless of cost
- Remote/rural location where grid extension is expensive
The Subsidy Factor
PM Surya Ghar Yojana subsidy (₹30,000–78,000 for 1–3 kW systems) is available for on-grid and hybrid systems only — the system must be grid-connected. Off-grid systems get no central subsidy, though some state schemes offer partial support.
For a 3kW system, the ₹78,000 central subsidy alone covers ~40-50% of the cost difference between on-grid and hybrid. This often makes hybrid the clear winner economically.