Guide · Updated September 2026
Off-grid vs on-grid solar: which one actually fits your home
The short answer
On-grid solar stays connected to the DISCOM, needs no battery and is what almost every Indian home should install. Off-grid solar runs independently on a battery bank, which is the largest part of its cost, and it is not eligible for the PM Surya Ghar subsidy. Choose off-grid only where there is no usable grid connection.
What each one actually is
An on-grid system converts sunlight to AC power, runs your house first, and exports the surplus through a bidirectional meter. At night you draw from the grid exactly as before. An off-grid system does the same conversion but stores energy in a battery bank instead of trading with the grid — so it must be sized for your worst day, not your average one.
Why on-grid wins wherever the grid works
The grid is a free, infinite battery that you already pay for. Using it means you do not buy storage, you do not replace storage every several years, and you get the PM Surya Ghar subsidy of up to ₹78,000. Off-grid gets none of that, and carries the full cost of its own storage on top of the panels, inverter and mounting.
What off-grid really costs
Storage is the dominant line item, and unlike panels it is a consumable: a battery bank has a working life measured in years, not decades, so you budget for replacing it at least once over the system’s life. Our published per-kW benchmark covers panels, inverter, structure, wiring and installation — it deliberately does not include storage, because a battery quote depends entirely on how many days of autonomy you want.
The middle ground, and when off-grid is right
A hybrid system stays grid-connected and adds a battery for backup — you keep net metering and gain outage cover, at the cost of the battery. Genuine off-grid is the correct answer in a narrower set of cases: a site with no usable connection, a farm or pump installation far from the grid, or a location where outages are so frequent and long that the grid is effectively absent.
Run your own numbers
Guides give you the rules; the calculator gives you your numbers. One input — your monthly bill.
Open the calculatorFAQ
Can I add a battery to an on-grid system later?
Usually yes, if the inverter is hybrid-capable or is replaced with one. Decide this at purchase time: retrofitting storage to a non-hybrid inverter means replacing the inverter as well, which is the expensive part.
Does the subsidy apply to off-grid systems?
No. PM Surya Ghar covers grid-connected residential rooftop systems with a net-metering agreement. Off-grid installations are outside the scheme.
Does net metering make batteries pointless?
For pure economics, largely yes — the grid already banks your daytime surplus and returns it at night, at no capital cost. Batteries are bought for backup or independence, not for return.
Which one is better during a power cut?
A plain on-grid inverter shuts down during an outage by design, for the safety of the linemen working on the line. If outages matter to you, that is a hybrid-with-battery decision — not a reason to go fully off-grid.