On-Grid vs Off-Grid Solar – Cost Comparison

Published: 08 Sep, 2025 | By Solar

Solar energy is not just a futuristic concept in India, more and more people are adapting to it as the time is going by and at a rate, you probably won’t believe. And why wouldn’t they? Have you seen the rising electricity bills, power outages in the rural areas and especially in tier 2 or tier 3 cities. And honestly, these are the time, you cannot really live without electricity and so solar power is the most affordable option yet, but before making the switch, one of the most common questions people ask is:

Which is more cost-effective, an on-grid or off-grid solar solar system?

What is On-Grid and Off-Grid Solar?

On-Grid Solar System

An on-grid solar system is also known as a grid-tied solar system, it is connected to the local supply of your neighbourhood, and works in collaboration with it. So, it produces electricity for you and if you need more, you can get it from the grid, and if it’s generating more, it gives it back to the grid, again helping you earn credits for it.

Key Benefits:

• No batteries needed
• You can get credit on your electricity bill for excess power (called “net metering”)
• Best for homes and businesses in areas with stable electricity

Off-Grid Solar System

This system is not connected to the grid. It runs completely on solar energy and stores extra power in batteries. It’s useful in places where there is no power supply or frequent power cuts.

Key Benefits:

• Works even in remote villages
• You are not dependent on government power
• Gives 24x7 power if designed correctly

Cost of On-Grid Solar System in India

Now let’s talk numbers. The cost of a solar system depends on:

• Size (in kilowatts, or kW)
• Brand of solar panels and inverters
• Type of installation (ground or rooftop)
• Location and government subsidy (some states offer benefits)

Cost of 1kW On Grid Solar System in India

• Average Cost: ₹50,000 – ₹70,000 (without subsidy)
• With Government Subsidy: ₹40,000 – ₹50,000 (approx.)

Approximately, this is the on-grid solar panel cost in India for 1kw in India.

This price includes:

• Solar panels
• Inverter
• Mounting structure
• Wiring and safety devices
• Installation

A 1kW system can generate around 4-5 units per day, enough for a small home with basic needs (lights, fan, TV, etc.).

On-Grid Solar System Cost in India (Estimate)

Note: These are general estimates and prices can vary. Spectra Solar Power provides custom quotes based on your roof and power needs.

Off-Grid Solar System Cost in India

Off-grid systems need batteries, and that makes them more expensive than on-grid systems.

Off-Grid Solar System Price in India

• 1kW system: ₹85,000 – ₹1,10,000
• Includes batteries, which alone can cost ₹25,000 – ₹40,000
• No subsidy is available on batteries in most states

Off-Grid Solar System Cost (Estimate)

Which is Expensive: Off-Grid or On-Grid?

Simple answer: Off-grid is more expensive.

Why?

• Batteries are costly
• You need regular maintenance
• You might need more solar panels to generate and store enough power

If you live in an area with good electricity and a proper grid, on-grid solar is the cheaper and better option.

Which Solar System is More Cost-Effective in India?

Go for On-Grid Solar if:

• You live in a city or town with good power supply
• You want to save money on your monthly bill
• You don’t want the cost and hassle of maintaining batteries

Choose Off-Grid Solar if:

• You live in a remote area or village with frequent power cuts
• There is no electricity connection or it’s too costly to get one
• You need 100% independence from the grid

In short:

• On-Grid = Best for Savings
• Off-Grid = Best for Independence

Real-Life Example

Let’s say you are a homeowner in Bareilly, Jabalpur, or Nellore. You want to cut your ₹2000 electricity bill.

Installing a 3kW on-grid solar system may cost you around ₹1.5 – ₹2 lakh. With net metering, your bill may drop to ₹100 or zero.

This means you can recover your investment in 3-4 years. After that, your power is almost free for the next 20 years.

What About Solar Panel Installation?

If you’re confused about installation, don’t worry.

At Spectra Solar Power, the process is made very simple:

• Free site inspection
• Customized solar design
• Quick and safe installation
• Help with government approvals and subsidies

Solar spectra power is one of the best solar companies in India. And why wouldn’t it be, it is providing the most affordable option, personal and free guidance to you and they even help with all the processes and paperworks.

Are You Still Confused About What to Choose?

That’s not new at all, you are not the only one who gets confused about whether to choose an on-grid or off-grid system.

At Spectra Solar Power, the team guides you step-by-step:

• They come and check your electricity usage.
• Understand your power cut problems and why and how often they are happening.
• Check roof size, sunlight and other factors that matter in choosing solar systems.
• Then suggest the best system that fits your budget fulfilling your needs..

Summary: Quick Comparison Table

Who Could You Seek Help From?

Spectra Solar Power is committed to making clean energy affordable and easy for everyone.

Why customers trust spectra solar power:

• Good Quality solar panels and inverters that’ll last you.
• Affordable pricing for both on-grid and off-grid solar systems, so no more confusion based on financial terms.
• Friendly support for people in Tier 2 and 3 cities, you don’t feel weird asking them what you actually want
• Years of experience in solar panel installation, so they actually know what they are doing
• Excellent after-sales service, so if you have any problem, you know who to contact.

Whether you want to reduce bills, enjoy power backup, or live off the grid, Spectra Solar Power is here to help.

What Do We Think Then?

Solar is not just for big cities, we’re already in the times/generation where families in smaller towns and villages are also enjoying the savings and freedom of solar energy.

Before you choose a system, think about:

• Your budget, very important
• Your electricity situation/ powercuts?
• Your future power needs, any plans for buying new stuff?

And if you need help, just reach out to Spectra Solar Power. We’ll make your switch to solar simple, affordable, and worry-free.