An on-grid solar system is the most cost-effective way to switch to solar energy. With rising electricity costs, homeowners are looking for reliable solutions to reduce their dependency on conventional power sources. At Truzon Solar, we provide high-quality on-grid solar systems designed to maximize energy savings and ensure seamless integration with the power grid.

This guide will cover everything you need to know about on-grid solar systems, including their cost, working mechanism, government subsidies, and return on investment.

What is an On-Grid Solar System?

An on-grid solar system, also known as a grid-tied solar system, is a type of solar power setup that is connected to the electricity grid. This system allows homeowners to generate electricity from solar panels and send excess power back to the grid through a net metering system. Unlike off-grid systems, which require battery storage, an on-grid solar system relies on the grid for power when solar generation is low or at night.

How Does It Work?

The on-grid solar system works by converting sunlight into electricity using solar panels. This electricity is then converted from DC (direct current) to AC (alternating current) using a grid-tied inverter. The power is consumed by household appliances, and any excess energy is fed back to the grid, earning the homeowner credits or reducing their electricity bill.

At Truzon Solar, we specialize in high-efficiency on-grid solar systems that optimize energy savings while ensuring seamless grid connectivity.

Why Choose an On-Grid Solar System for Your Home?

• Cost-Effective: No need for expensive battery storage.
• Lower Electricity Bills: Generate your own power and save money.
• Eco-Friendly: Reduces reliance on fossil fuels and lowers carbon emissions.
• Government Incentives: Get subsidies and benefits from the government.
• No Power Wastage: Excess energy is fed back to the grid rather than wasted.

Components of an On-Grid Solar System

Solar Panels

Solar panels are the heart of any solar power system. They capture sunlight and convert it into electricity. The most common types used in on-grid systems are monocrystalline and polycrystalline solar panels.

Grid-Tied Inverter

The inverter is responsible for converting the DC electricity generated by solar panels into AC electricity that can be used by household appliances. It also ensures synchronization with the grid.

Net Metering System

A net meter records the amount of electricity sent to and consumed from the grid. This system ensures that homeowners are credited for excess energy exported to the grid.

Mounting Structures

These are used to hold the solar panels in place, either on the rooftop or ground-mounted structures, ensuring optimal sunlight exposure.

Balance of System (BoS)

Includes wiring, connectors, junction boxes, and other components that ensure a complete and functional solar power system.

How Does an On-Grid Solar System Work?

The Role of Solar Panels

Solar panels absorb sunlight and generate direct current (DC) electricity, which is the primary source of energy for an on-grid solar system.

How the Grid-Tied Inverter Functions

The inverter converts DC power from the panels into alternating current (AC), making it usable for household appliances and for feeding into the electricity grid.

Understanding Net Metering and Electricity Credits

Net metering is a key feature of on-grid solar systems. When a household generates more electricity than it consumes, the excess is sent to the grid, and the homeowner gets electricity credits. These credits can be used to offset electricity consumed from the grid when solar production is low.

Benefits of Installing an On-Grid Solar System

Investing in an on-grid solar system provides numerous benefits, including:

Reduced Electricity Bills

With an on-grid solar system, you can generate your own electricity and use the grid as backup, significantly lowering electricity costs.

Contribution to a Greener Environment

Switching to solar energy reduces your carbon footprint and helps combat climate change.

Government Subsidies & Incentives

The Indian government offers attractive subsidies under the Rooftop Solar Programme to make on-grid solar systems affordable. At Truzon Solar, we assist homeowners in applying for subsidies and net metering approvals.

Low Maintenance Costs

An on-grid solar system has minimal maintenance requirements compared to off-grid systems with battery storage. Regular cleaning and occasional system checks ensure optimal performance.

Higher Property Value

Homes with on-grid solar systems are more attractive to buyers due to lower energy costs and environmental benefits.

On-Grid Solar System Cost in India

Price Breakdown of Solar Panels, Inverters & Accessories

The cost of an on-grid solar system depends on various factors such as system capacity, brand, and installation requirements. Below is a price breakdown for a standard residential system in India:

For a typical 3kW on-grid solar system, the total cost would be ₹2,00,000 – ₹2,85,000, excluding subsidies.

Installation Costs

Installation costs vary depending on factors like location, roof type, and labor charges. In urban areas, installation may be slightly more expensive due to higher labor costs.

Additional Costs (Wiring, Labor, Permits)

Apart from the basic system components, additional expenses include:

• Wiring & Safety Equipment – Essential for connecting the system to the grid.
• Net Meter Installation Fees – Usually charged by the electricity provider.
• Government Permits & Approvals – Required in some states.

At Truzon Solar, we offer cost-effective on-grid solar system packages with high-efficiency panels and premium inverters.

Government Subsidies for On-Grid Solar Systems

Central Government Subsidies

The Ministry of New and Renewable Energy (MNRE) offers subsidies to homeowners installing on-grid solar systems. The subsidy structure under the Rooftop Solar Programme Phase II is:

• Up to 3 kW system – 40% subsidy
• 3 kW to 10 kW system – 20% subsidy
• Above 10 kW system – No subsidy (only for residential use)

For example, if you install a 3kW system costing ₹2,00,000, you can get a 40% subsidy (₹80,000), reducing the total cost to ₹1,20,000.

State Government Incentives

Some states provide additional incentives over and above the central government subsidy. For instance:

• Delhi: Additional ₹2,000 per kW subsidy.
• Maharashtra: Low-interest solar loans available.
• Rajasthan: Special rebate on property tax for solar homes.

How to Apply for Solar Subsidies?

To avail of government subsidies, follow these steps:

1. Apply on the MNRE National Portal – www.solarrooftop.gov.in
2. Choose an MNRE-approved vendor for installation.
3. Install the system and get it inspected by DISCOM officials.
4. Submit net metering application and connect the system to the grid.
5. Receive subsidy directly in your bank account post-verification.

Return on Investment (ROI) of an On-Grid Solar System

A well-installed on-grid solar system provides excellent ROI by reducing electricity bills and increasing home value.

How to Calculate ROI?

Return on Investment (ROI) is calculated using the following formula:

ROI (%) = (Annual Savings ÷ Initial Investment) × 100

For a 3kW solar system, if you save ₹25,000 per year on electricity bills and the system costs ₹1,20,000 (after subsidy), the ROI is:

(₹25,000 ÷ ₹1,20,000) × 100 = 20.83% per year

Payback Period Analysis

The payback period refers to the time it takes to recover the initial investment. A standard 3kW system pays for itself in 4 to 6 years.

Long-Term Savings & Benefits

A well-maintained solar system lasts 25+ years, meaning you get 19+ years of free electricity after the payback period.

Net Metering in On-Grid Solar Systems

What is Net Metering?

Net metering allows solar system owners to send excess electricity to the grid and receive credits in return.

How to Apply for Net Metering?

1. Submit an application to your state DISCOM (electricity provider).
2. Install a bidirectional meter to measure both energy consumed and exported.
3. Inspection & approval by DISCOM officials.
4. Start receiving credits for excess solar power.

Understanding the Billing Mechanism

• If you generate more electricity than you consume, your electricity bill will be zero or minimal.
• If you consume more than you generate, you pay only for the extra units used from the grid.

On-Grid vs. Off-Grid vs. Hybrid Solar Systems

On-grid solar systems are best for homeowners looking to reduce electricity bills without needing batteries.

Installation Process of an On-Grid Solar System

Site Inspection & Feasibility Study: Before installation, a solar expert evaluates your rooftop space, sunlight exposure, and energy needs.

Designing the Solar System: A customized system is designed based on energy consumption patterns and roof capacity.

Procurement & Installation: Certified installers place solar panels, connect inverters, and integrate net metering.

Commissioning & Grid Connection: After installation, the system is tested, and the net meter is activated for grid connection.

Maintenance & Performance of On-Grid Solar Systems

Regular Maintenance Checklist

• Clean solar panels every 3-6 months.
• Monitor system performance using a solar app.
• Check for loose wiring and connections.

Common Issues & Troubleshooting

• Low power output – This may be due to dirt accumulation or shading.
• Net meter not recording export – Contact your DISCOM for assistance.

How to Maximize Efficiency?

• Install panels at the right angle and direction.
• Keep panels free from dust and debris.
• Use high-efficiency inverters for better energy conversion.

 

Choosing the Right On-Grid Solar System with Truzon Solar

Selecting the right on-grid solar system involves evaluating energy needs, system efficiency, and budget.

Why Choose Truzon Solar?

✅ MNRE-approved solar solutions
✅ High-efficiency solar panels & inverters
✅ Affordable pricing & flexible financing options
✅ Complete assistance with net metering & subsidies

At Truzon Solar, we customize on-grid solar systems to meet the specific energy needs of each household, ensuring maximum savings and reliability.

Factors to Consider

• Energy Needs – Check your average monthly electricity consumption.
• Roof Space – Ensure you have enough space for solar panel installation.
• Budget & ROI – Consider initial costs and long-term savings.

Customer Reviews & Ratings

Before finalizing a solar provider, check online reviews and testimonials from customers. Look for:

• Efficiency & Durability of solar panels.
• Ease of Installation and after-sales support.
• Warranty Claims and customer service responsiveness.

 

Common Myths & Misconceptions About On-Grid Solar Systems

Myth #1: Solar Panels Do Not Work on Cloudy Days

Reality: Solar panels work even on cloudy days, though at reduced efficiency.

Myth #2: Solar Systems Are Too Expensive

Reality: With subsidies and falling prices, on-grid solar systems are now affordable and provide great ROI.

Myth #3: Solar Panels Require Frequent Maintenance

Reality: On-grid systems require minimal maintenance – just occasional cleaning and system checks.

Myth #4: Solar Power is Unreliable

Reality: On-grid systems ensure continuous power availability, as the grid serves as a backup.

Myth #5: Installing Solar Panels Can Damage My Roof

Reality: Properly installed solar panels do not damage roofs. In fact, they provide an extra layer of protection.

Future of On-Grid Solar Systems in India

Trends & Technological Advancements

• Bifacial Solar Panels – These panels generate electricity from both sides, increasing efficiency.
• Smart Solar Inverters – Real-time monitoring and AI-driven optimization.
• Floating Solar Farms – Expanding solar power generation to water bodies.

Government Policies & Renewable Energy Goals

• India aims for 500 GW of renewable energy capacity by 2030.
• Net zero carbon emissions goal by 2070, making solar adoption a priority.

Growth Potential in the Residential Sector

• Increasing electricity costs make solar systems more attractive.
• Improved financing options, such as solar loans and EMI plans, enable easier adoption.

On-Grid Solar Systems for Savings and Sustainability

• On-grid solar systems offer cost savings, environmental benefits, and energy independence.
• Government subsidies reduce installation costs, making solar power affordable for homeowners.
• Net metering ensures additional savings by allowing users to export excess power to the grid.
• With minimal maintenance and a 25+ years lifespan, on-grid solar systems are a long-term investment.

Why You Should Invest in an On-Grid Solar System

• Save up to 90% on electricity bills.
• Reduce your carbon footprint and contribute to a greener planet.
• Increase property value with a modern, energy-efficient home.

If you're looking for reliable and affordable on-grid solar systems, contact Truzon Solar today! Our team of experts will help you design and install the perfect solar system for your home.

FAQs on On-Grid Solar Systems

1. How Much Does an On-Grid Solar System Cost for a Home?

The cost depends on the system size and brand. A 3kW system costs ₹1,20,000 – ₹1,80,000 after subsidies.

2. Can I Get a Loan to install an On-Grid Solar System?

Yes! Many banks offer solar loans under government schemes, allowing easy EMI payments.

3. What Happens If There is a Power Outage?

On-grid systems do not work during power cuts, as they rely on the grid. You need a hybrid system with batteries for backup power.

4. Is Net Metering Available in All States?

Most Indian states offer net metering, but policies vary. Check with your local electricity provider for eligibility.

5. How Long Does It Take to Recover the Investment?

The payback period is 4 to 6 years, depending on electricity savings and subsidies. After that, you enjoy free electricity for 19+ years!

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