On-Grid vs Hybrid Solar System: Explained for Indian Homes
Choosing between an on-grid and hybrid solar system is one of the most important decisions for Indian homeowners. On-grid systems save money through net metering, while hybrid systems add battery backup for power cuts and night usage.
This guide explains both setups, compares costs and performance, and helps you decide which fits your home, budget, and electricity needs in 2026.
What is an On-Grid Solar System?
An on-grid (grid-tied) solar system connects directly to your electricity meter and the utility grid.
How It Works
Key Features
- •No batteries required.
- •Lower upfront cost.
- •Simple design and maintenance.
- •Works with net metering policies in most states.
What is a Hybrid Solar System?
A hybrid solar system combines solar power, grid connection, and battery storage for maximum flexibility.
How It Works
Key Features
- •Battery backup for power cuts and night usage.
- •Higher upfront cost due to batteries.
- •More complex but versatile operation.
On-Grid vs Hybrid: Side-by-Side Comparison
| Feature | On-Grid System | Hybrid System |
|---|---|---|
| Battery | No | Yes (LiFePO4/Li-Ion) |
| Upfront Cost (3 kW) | ₹1.3-1.8 lakh | ₹2.2-3.2 lakh |
| Power During Cuts | No | Yes (battery capacity) |
| Night Solar Usage | No (grid only) | Yes (stored battery) |
| Net Metering | Yes | Yes |
| Maintenance | Low | Medium (battery care) |
| Payback Period | 3-4 years | 4-6 years |
| Best For | Bill savings | Backup + savings |
Which System is Right for Your Indian Home?
Choose On-Grid If:
- ✓Your area has reliable grid power (<4 hours daily cuts).
- ✓You want maximum bill savings through net metering.
- ✓Budget is limited and you prefer quick payback.
- ✓Most of your electricity usage is daytime (AC, appliances).
Choose Hybrid If:
- ✓You face frequent power cuts (>4 hours daily).
- ✓You want to use solar power at night (stored in batteries).
- ✓You have high evening loads (fans, lights, appliances).
- ✓Future-proofing matters (add more panels/batteries later).
Cost Breakdown for 3 kW Systems (2026 Pricing)
On-Grid System (3 kW)
Hybrid System (3 kW + 3 kWh)
Subsidy Impact
PM Surya Ghar and state subsidies can reduce effective cost by 30-40% for eligible residential systems.
Real-World Performance in Indian Conditions
Expected Generation (Delhi Example)
3 kW On-Grid
360-420 units/month
3 kW Hybrid
Same + 2-3 hrs backup
Monthly Savings
On-Grid
₹2,500-3,500
via net metering
Hybrid
₹2,000-3,000
+ power cut protection
Pros & Cons Summary
On-Grid
Pros
- ✅Cheapest upfront cost
- ✅Fastest payback
- ✅Simple maintenance
- ✅DISCOM-friendly
Cons
- ❌No backup during cuts
- ❌No night solar usage
Hybrid
Pros
- ✅Power during outages
- ✅Nighttime solar usage
- ✅Future expandable
- ✅Peak shaving
Cons
- ❌Higher upfront cost
- ❌Battery maintenance
- ❌Slower payback
Which DISCOMs Support Net Metering Best?
Excellent Net Metering
Delhi (BSES), Maharashtra (MSEDCL), Gujarat (GUVNL), Karnataka (BESCOM), Rajasthan (AVVNL)
Moderate Support
Tamil Nadu, Andhra Pradesh, Kerala
Improving Policies
Uttar Pradesh, Madhya Pradesh
Check your local DISCOM policy before finalising system type.
Arkahub Recommendations for Indian Homes
Based on 1,000+ installations:
We help you size correctly, select BIS-certified components, and handle net metering paperwork across states.
Bottom line for Indian homes: Go on-grid for pure savings, hybrid for comfort and independence. Match your choice to your power reliability and budget for the best results.
Get started on your Solar journey today.
Request a call back from one of our experts to learn more about how you can achieve your saving goals with ArkaHub.
Frequently Asked Questions
Common questions about on-grid and hybrid solar systems.
Can I convert on-grid to hybrid later?
Still have questions?
We may be answer a few more questions. Go to our Learn section to know more to find answers to more questions in our Learn section.
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