Price, Subsidy, and Installation Information for a Home's On-Grid Solar System
Due to its connection to the main utility grid, an on-grid solar system is also referred to as a grid-tied system. The subsidy that comes with installing on-grid solar at home is one of its best features. Depending on the installed system capacity, the Indian government provides householders with a subsidy of between Rs. 30,000 and Rs. 78,000 for the installation of a rooftop on-grid solar system.
The cost of an on-grid solar system varies by city and, naturally, is dependent on the system's size. To give you an idea of the cost of an on-grid solar system, let's offer you a price demonstration from two separate cities, one in North India and one in South India:
- The cost of a 3 kW on-grid solar system in Bhopal with subsidies is approximately Rs. 135,000.
- The cost of a 5 kW on-grid solar system with subsidies in Bengaluru is approximately Rs. 300,000.
*Noted: The costs for the PS Solar Blue 6-foot variant of on-grid solar plants mentioned above are illustrative as of October 10, 2026. Your city, DISCOM fees, product variant chosen, panel type, system capacity, inverter type, mounting structure height, kind of after-sales service, savings guaranty, roof height, etc. all affect the ultimate cost of an on-grid solar system in India. Prices are also subject to change at any time.
We've covered every aspect of on-grid solar systems in this article, including how they operate, how much they cost with and without a subsidy, and installation advice. Go in for the specifics!
What is an on-grid solar system?
An on-grid solar system uses a bi-directional meter, also known as a net meter, to connect directly to the utility grid. Since on-grid solar systems are strong enough to provide all household energy needs, the majority of Indian homes with a dependable grid connection choose them.
In order to convert sunshine into power, the on-grid solar system is a meticulous assembly of numerous parts, which are mentioned below.
- Solar power
- An inverter solar
- Structures for installing solar modules
- A smart meter or bidirectional net meter
- Solar accessories include conduit trays, lightning arresters, MC4 connectors, AC and DC cables, and AC and DC combiner boxes.
Are you curious about each component's specific function? Let's explain it to you!
What Are the On-Grid Solar System Components?
This is an explanation of how each and every part of an on-grid solar system works together to power your house.
1. Solar Power
The solar system's most apparent component is its solar panels. They are positioned with their backs to the south on the roof. These solar panels capture light from the sun and transform it into electrical energy.
2. Inverter Solar
The entire solar system would have been an unworkable model without a solar inverter. DC is changed into AC by the solar inverter.
The only way to transform electricity produced by an on-grid solar system into a form that can be used to power domestic appliances is through this conversion, which makes it crucial.
3. Structures for mounting solar modules
The solar panels are supported by these pillars. In order to support the weight of the solar panels for 25 years—the lifespan of a solar system—and endure strong winds during storms and cyclones, they must be of a standard grade.
Precision laboratories prefabricate the best solar module mounting frameworks. To make steel resistant to rust, hot-dip galvanizing is used.
The PS Solar Intelligent WindPro Mount™ 2.0 mounting mechanism, for example, is approved by IIT-Bombay and can:
- withstands winds up to 170 kmph.
- Their 80-micron high-density galvanized iron (HDGI) covering keeps them from rusting for years.
4. Solar Add-ons
Solar accessories are just as crucial to the setup as a panel, an inverter, or a mounting structure, even though they might not seem like it. Let's find out!
- AC and DC cables: are necessary for connecting various components and wiring solar panels in order for the solar grid as a whole to function.
- DC combiner boxes: These devices function similarly to isolation boxes. This box isolates all of the cables that transport DC current from the panels. The panels may produce DC power of up to 1,000 volts or higher. Because it is hazardous and maybe fatal, a DC combiner box is necessary. The solar inverter generates alternating electricity after receiving the DC current from this box.
- AC combiner boxes: An AC combiner box receives the AC power from the on-grid solar inverter and combines all of the wires carrying the AC current from several inverters.
- Earthing strips and wires: These parts are used to finish earthing after the whole on-grid solar system is configured.
5. Two-way Measurement
The bi-directional meter, also called a net meter, is essentially made to monitor:
- Power delivered to the grid
- Power that is imported from the grid
Until and unless a bidirectional meter is installed in place of the standard meter, an on-grid solar system will not be operational.
The net meter assists the discom in monitoring the power produced by the solar system, the power consumed, the power imported, and the electricity supplied to the grid.
The readings from the bidirectional meter provide an account of the following at the end of each month when the power bill is generated:
- What many of the units were added to the grid?
- How many grid units were removed?
This solar net metering method benefits the following:
- Your payment will be reduced if you contribute more units to the grid than you use. The bill will be further reduced.
- If you utilize more grid units in addition to those produced by your solar plant, those units.
Solar Subsidy for On-grid System
When a residence installs an on-grid solar power system, the Indian central government grants the PM Surya Ghar solar subsidy. Every Indian state continues to receive the same subsidy.
The subsidy breakdown details are as follows:
| Solar System Size
| Solar Subsidy Offered Under PM Surya Ghar Muft Bijli Yojana
|
| 1 kWp
| Rs. 30,000
|
| 1 kWp
| Rs. 60,000
|
| 3 kWp and higher
| Rs. 78,000
|
Note that for on-grid rooftop solar systems with a power output of 3 kWp or more, the subsidy is limited to Rs. 78,000.
