23 October 2026
On-grid systems feed the grid and have no battery. Off-grid systems run on batteries and ignore the grid entirely. Hybrid systems do both: they use the grid when it is there and batteries when it is not. For 90% of Indian homes the answer is on-grid, because it is the cheapest per unit generated and the only type eligible for the PM Surya Ghar subsidy.
The other two exist for specific problems. Off-grid is for places the grid does not reach. Hybrid is for places where the grid reaches but cannot be relied on. Choosing by anything other than your actual grid situation is how people end up paying for batteries they never needed.
| On-grid | Off-grid | Hybrid | |
| Battery | None | Required | Required, usually smaller |
| Grid connection | Required | Not used | Required |
| Cost per kW | ₹55,000 to ₹85,000 | ₹1,20,000 to ₹1,80,000 | ₹90,000 to ₹1,40,000 |
| Works during a power cut | No | Yes | Yes |
| Exports surplus for credit | Yes | No | Yes |
| PM Surya Ghar subsidy | Eligible | Not eligible | Usually not eligible |
| Maintenance | Lowest | Highest, battery replacement | Medium |
| Typical payback | 3 to 5 years | 7 to 12 years | 6 to 9 years |
An on-grid system connects your array to the utility through a bi-directional net meter. Whatever your home does not use flows to the grid and is credited against what you draw at night. There is no battery, which removes the most expensive and shortest-lived part of a solar system.
The economics follow from that. At ₹55,000 to ₹85,000 per kW it is the cheapest way to generate solar electricity in India, it attracts the full PM Surya Ghar subsidy of up to ₹78,000, and it pays back in three to five years. Our installation cost guide breaks the pricing down by system size.
The limitation is real and often misunderstood: when the grid goes down, an on-grid system shuts down too. That is a safety requirement called anti-islanding, which stops your array from energising lines that a lineman may be working on. Sunshine outside makes no difference. If your area has frequent or long cuts, this is the point at which to consider hybrid.
What your exported units are worth depends on your state's policy, and the difference between net metering, gross metering and net billing changes the arithmetic substantially. Our net metering guide covers the state-by-state position.
An off-grid system stores everything in a battery bank and never touches the utility. It is the right answer for farmhouses, remote fields, telecom sites, border and forest locations, and anywhere a grid extension would cost more than the batteries.
It costs ₹1,20,000 to ₹1,80,000 per kW because the battery bank is a large part of the system, and that battery is also the part that wears out. Lead-acid batteries last three to five years; lithium batteries last eight to twelve and cost considerably more upfront. Budget for at least one full replacement during the system's life, and in the case of lead-acid, two or three.
Off-grid systems also need honest load planning. Every appliance has to be accounted for, because there is no grid to cover a shortfall. Oversize the array and the battery and the cost climbs; undersize them and the lights go out in the monsoon when four cloudy days arrive in a row.
A hybrid system runs as an on-grid system most of the time, exporting surplus where the policy allows, and switches to its battery when the grid fails. The battery is usually sized for essential loads only, a few hours of lights, fans, router and refrigerator, rather than the whole house.
That makes it the practical choice where the grid exists but fails often: parts of Bihar, eastern Uttar Pradesh, rural Maharashtra, and any location where a cut during working hours costs you money. At ₹90,000 to ₹1,40,000 per kW it sits between the other two, with payback in six to nine years, and the premium over on-grid is best understood as what you are paying for reliability rather than an investment that pays back on its own.
One point to confirm before you buy: most states do not extend the residential subsidy to hybrid systems, and some restrict net metering for them. Ask your DISCOM, in writing, what applies to a hybrid installation on your connection before you commit.
The third question catches a lot of people out. If you have a working inverter and battery for your existing backup, adding an on-grid solar system gives you the economics of on-grid and the backup you already had, at a far lower cost than replacing everything with a hybrid setup.
One thing that does not change across the three types is the module. The same BIS-certified panel works in all of them; what differs is the inverter and whether a battery sits behind it. Choose modules on their own merits, which our guide to the best solar panels in India covers, and check the exact model against the MNRE ALMM list if you are claiming the subsidy.
Credence Solar builds BIS-certified Mono PERC and N-type TOPCon modules from 580 W to 745 Wp at a 2.2 GW plant in Rajkot. Specifications are on our datasheet page, and registered installers in your district are listed on the PM Surya Ghar portal.
Pick on-grid if you have a reasonably reliable grid connection, which covers most Indian homes and nearly all urban ones. Pick off-grid only where there is no grid to connect to. Pick hybrid where the grid exists but fails often enough to matter, and go in knowing you are buying reliability rather than a faster payback. If you already own an inverter and battery, an on-grid system plus what you have is usually cheaper than a hybrid installation and does the same job.
For module specifications or dealer pricing, talk to our team.
On-grid systems connect to the utility and have no battery, exporting surplus for credit. Off-grid systems store everything in batteries and never connect to the grid. Hybrid systems do both, running on the grid normally and switching to battery during a cut. Cost rises in that order, from ₹55,000 to ₹1,80,000 per kW.
On-grid, for most homes. It is the cheapest per kilowatt, needs the least maintenance, pays back in three to five years and is the only type eligible for the full PM Surya Ghar subsidy. Hybrid makes sense where power cuts are frequent or long, and off-grid only where there is no grid connection at all.
No. On-grid inverters shut down when the grid fails, under a safety requirement called anti-islanding that prevents the array from energising lines a lineman may be working on. Sunshine makes no difference. A hybrid system or a separate battery inverter is needed for backup during cuts.
Usually not. The scheme is written around grid-connected systems with net metering, and most states do not extend it to hybrid or off-grid installations. Some also restrict net metering for hybrid systems. Confirm the position with your DISCOM in writing before committing to a hybrid build.
Roughly 60 to 70% more per kilowatt: ₹90,000 to ₹1,40,000 against ₹55,000 to ₹85,000 for on-grid. The difference is the battery bank and a more complex inverter. Factor in battery replacement every three to five years for lead-acid or eight to twelve years for lithium.
Only if the inverter supports it. A standard on-grid inverter cannot charge a battery, so retrofitting means replacing the inverter with a hybrid unit or adding a separate battery inverter alongside. If backup is likely to matter later, say so at the design stage; the cost difference then is far smaller than a retrofit.
