On-Grid Solar System in India: How It Works, Price & Benefits (2026)
An on-grid solar system connects your rooftop panels directly to the electricity grid, letting you run on solar power during the day and export unused units for bill credits through net metering.
TL;DR
An on-grid solar system is the most affordable rooftop solar option for Indian homes — no batteries needed. Your panels power your home during daylight hours, and excess electricity is credited to your bill through net metering. Subsidy-eligible under PM Surya Ghar. Available from Arkahub in Bangalore and Hyderabad.
How an On-Grid Solar System Works
An on-grid (grid-tied) solar system has three core components: solar panels, a grid-tied inverter, and a net meter installed by your DISCOM.
- •During daylight: Your panels generate DC electricity. The inverter converts it to AC and powers your home appliances directly.
- •Surplus production: When your panels generate more than your home needs, the surplus flows to the electricity grid. Your DISCOM records the exported units, which are credited against your future bills — this is net metering.
- •At night or on cloudy days: You draw from the grid as normal. Net metering credits offset this consumption on your bill.
One important constraint: on-grid systems are required by safety regulations to shut down automatically during grid outages. This prevents back-feeding into power lines being worked on by engineers. If your area has frequent power cuts and you need backup power, a hybrid system is the better choice.
For pricing on both on-grid and hybrid 5 kW systems, see our 5 kW solar panel price guide.
5 kW On-Grid Solar System Price in India — 2026
On-grid systems are 30–40% less expensive than hybrid systems of the same capacity because there is no battery cost.
3 kW on-grid: ₹1.3-1.85 installed
~340–380 units/month | PM Surya Ghar subsidy: ₹78,000 (already accounted in price range above).
5 kW on-grid: ₹2.5 - 3.25 lakh installed
~580–620 units/month | PM Surya Ghar subsidy: ₹78,000 (already accounted for in price range above).
8 kW on-grid: ₹4.65 lakh onwards installed
~920–1,000 units/month | PM Surya Ghar subsidy: ₹78,000 (already accounted for in price range above).
All prices are all-inclusive: panels, inverter, mounting structure, wiring, DISCOM approval, net metering, and subsidy filing by Arkahub.
“I'm very happy about the way they have set up and installed my On-Grid Solar System. The overall experience has been very good.”
— Rohit Kumar
For a complete multi-size price table covering 1 kW to 10 kW, see our solar panel installation cost guide.
To understand the full AC load capacity of a 5 kW system, see our solar panel for AC loads guide.
On-Grid vs Hybrid Solar System — Which Should You Choose?
Choose on-grid if:
- ✅Your area has reliable grid supply with few or no power cuts or you own a battery already to store excess to use when there's a power outage.
- ✅You want the lowest upfront cost — on-grid is 30–40% cheaper than hybrid.
- ✅Your priority is reducing your electricity bill and earning from net metering.
- ✅You want to maximise the PM Surya Ghar subsidy impact (applies to on-grid systems).
Choose hybrid if:
- ⚡Your area has regular power cuts and you need electricity during outages.
- ⚡You want to maximise solar self-consumption by storing excess power for night use.
- ⚡You are willing to pay more upfront for energy independence.
Both system types are installed and maintained by Arkahub in Bangalore and Hyderabad with the same guaranteed payback promise at a top-up cost.
Want to find out if an on-grid solar system is right for your home? Fill in the form below and an Arkahub advisor will call within 24 hours with a custom recommendation and free quote.
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Frequently Asked Questions — On-Grid Solar System
Common questions about on-grid solar in India.
What is an on-grid solar system?
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