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What is an On-Grid Solar PV System?


At the end of the First Quarter of 2020, India's Cumulative Solar Capacity stood at 36GW. And a majority of this installed capacity is On-Grid/Grid Tied Solar Systems.

There are three major types of Solar Power Systems, and each one has its specific purpose.

  1. On-Grid Solar PV System for consumers reduces your monthly electricity bills. This system does not require batteries.

  2. Off-Grid Solar PV Systems, is an alternative to a UPS system, providing backup during power outages. These systems require batteries.

  3. Hybrid Solar PV System combines the best benefits of On-Grid and Off-Grid Systems. They help save on bills and offer power backup during power outages.

Let's understand how an On-Grid System can help you save on your monthly electricity bills.

On-Grid Solar Plants are connected to the utility grid.

In this, the power generated from the solar panels is first consumed by the loads.

The surplus power is exported to the grid, and the public utility supplier keeps track of the exported power using a Bi-Directional Meter.

A Bi-directional meter is nothing but a device that can track both the power import and power export data, as opposed to the unidirectional meter, which is the default meter installed. The Unidirectional Meter can track only the amount of power that the consumer imported from the Utility Grid.


At every billing cycle, the grid utility supplier calculates the net value of imported and exported power, and the consumer is billed according to this.


Import > Export

If the Imported power is greater than the exported power in any billing cycle, the consumer pays the utility grid only for the net import.





Export > Import

If the Exported power is greater than the imported power in any billing cycle, the consumer is paid by the utility grid as per the feed-in-tariff for the net export.




This approach is known as a Net - Metering. It is this scheme that allows the consumer to avail the maximum benefit of a Solar Rooftop System.

Based on the current solar policy in India, it is advisable to install an On-Grid System Capacity in which the net export is kept to a bare minimum in every billing cycle.

On-Grid Solar PV Systems are recommended to consumers when they are looking to reduce their electricity bills. Please note that this doesn't provide a power backup during an outage as the Solar Grid-Tied Inverter shuts down automatically during a power outage.

This system is a great investment as it pays back its investment in 4-6 years and helps save on your electricity bills for 25 years.