Fortunately, nowadays we have various mediums of natural resources to meet all our energy requirements. Solar power is one of them, which is renewable, unlimited, sustainable and highly cost-effective. An on-grid solar system is simply a grid-connected energy setup that directly connects to the public electricity grid. With such a solar-energised system, you can easily generate your own electricity while staying connected to the conventional power supply. Rising electricity prices have become a major concern for many, and solar systems are considered the best alternative to mitigate these expenses. Besides that, you will also find it more economically feasible because of the net-metering capabilities. This article will provide you with detailed clarity about the On-Grid Solar System Cost in India.
On-Grid Solar System Cost by Capacity
The best part of having an on grid solar system is that it is available in different capacities and costs for energy consumption. Now, let us take some of the below-mentioned facets related to this:
1. 1Kw On-Grid Solar System Cost
It will cost you approximately Rs 79,000 for a 1Kw on gird solar system for home in India. You need to note that this expense will be based mainly on the installation costs of the solar panels, along with the inverter components. Both solar panels and the inverter components will be the main parts of your solar system. It is also important to consider the potential savings and long-term benefits while you are thinking about the on gird solar system cost aspects.
The 1Kw on-grid solar system is considered one of the most affordable options, especially for small homes. You will also get to enjoy a payback period of 4 to 6 years, with most of the installation services available.
2. 2Kw On-Grid Solar System Cost
The on gird solar system cost with 2Kw capacity is estimated to range between Rs 1,40,000 to Rs 1,70,000 in India. However, this pricing range is based on the solar panel quality, complexities involved with the installation procedures and the national average.
The 2Kw On grid Solar system is ideal for apartments with higher monthly electricity bills. It helps you to save big time on your energy consumption and the expenses for power utilisation.
3. 3kW On-Grid Solar System Cost
The cost for a 3Kw on-grid solar system in India is estimated to be around Rs 1.2 Lakhs to 1.7 Lakhs. This is inclusive of the installation charges, solar PV modules, structure and inverter. A well-installed 3Kw solar system is expected to last more than 25 years and will help you to significantly reduce your electricity expenses. The 3Kw is found to be more suitable for medium-sized household energy requirements.
4. 5kW On-Grid Solar System Cost
The on gird solar system cost with 5Kw capacity ranges between Rs 3.10 Lakhs and 3.47 Lakhs. The cost can vary depending on the types of inverters used, required battery backup and solar panel configuration. Another best aspect of getting a 5Kw solar system is that you will be eligible for the subsidies granted by the PM Surya Ghar Yojana. This makes it more affordable to harness solar power for meeting your energy requirements. The 5Kw solar system is found to be ideal for villas, large homes and medium commercial establishments.
5. 10kW On-Grid Solar System Cost
The cost for a 10Kw on-grid solar system is found to be approximately between Rs 5,21 Lakhs and Rs 6 Lakhs. This ultimately depends on the solar panel configuration, types of inverters and the required battery backup for the solar system setup. A 10Kw in-grid solar system is considered ideal for larger homes and commercial establishments.
On-Grid Solar System Cost After Subsidy (2026)
India’s solar mission is believed to be one of the most promising in recent times. Among the various subsidy programs initiated by the Government, the MNRE solar subsidy is backed by huge financial support. The vision is to significantly reduce the installation costs for users and help them harness the unlimited power of solar energy. Getting a government-based subsidy to function the on gird solar system for home will prove to be economically feasible. For instance, the overall cost for a 3Kw solar system in 2026 can be significantly reduced by approximately Rs 40,000 to Rs 60,000 after subsidy.
Based on different on-grid system capacities, the Government provides subsidies, which are highly encouraging to switch over to solar power for energy. India’s MNRE solar subsidy program offers numerous subsidy schemes for commercial and residential users. Depending on the size of the rooftop on-grid solar system, residential users can avail subsidies that range between Rs 30,000 and Rs 78,000.
Compared to residential users, solar subsidies for commercial firms are considered to be limited because direct capital subsidies are usually not available. However, the incentives are still there, and businesses benefit by choosing the best solar company. This will help to ensure proper system configuration that aligns with the solar subsidy program.
Factors Affecting On-Grid Solar System Cost
Various factors can determine your on-grid system cost, such as:
- Solar panel type (Mono/Poly)
Monocrystalline solar panels (Mono) consist of black-coloured solar cells. They are made of a single silicon crystal and come with a higher efficiency rating. On the other hand, Polycrystalline solar panels (Poly) consist of blue-coloured cells. They are made of many silicon crystals that are melted together. Poly-type solar panels are considered to be comparatively more affordable.
- Inverter brand
The brand of inverter you use is a prominent factor that impacts the quality and cost of your on-grid system. It is highly recommended to use a branded inverter for better energy efficiency and cost-effectiveness.
- Rooftop type & structure
When considering your on-grid solar system installation cost, you need to check whether the following facets regarding the rooftop type and structures are in place:
1. Proper condition of the rooftop
2. Strong rooftop structure to withstand the weight of the system
3. Proper angles and orientation of the solar panels
- Installation & wiring quality
The quality of installation and wiring is a central factor that can determine the cost of your on-grid solar installation. Ensure you are getting it done by a professional service provider.
- Net metering charges
Net metering charge is an important factor that can influence the cost of your solar system installation work. It is because, through proper net metering, you can enjoy long-term savings and drastically cut down your electricity bills.
- Location & state policies
Different states in India have varying state solar policies and their net metering regulations.
On-Grid vs Off-Grid vs Hybrid – Cost Comparison
| Cost Factor | On-Grid Solar | Off-Grid Solar | Hybrid Solar |
| Upfront System Cost | low to medium | high | high |
| Battery Requirement | Not Required | Required | Required |
| Battery Cost Impact | N/A | Adds ₹50k–₹2L+ | Adds ₹50k–₹2L+ |
| Installation Cost | ₹1.2L – ₹3.5L* | ₹2.5L – ₹6L* | ₹3L – ₹7L* |
| Net Metering Benefit | Yes | No | Partial |
| Electricity Savings | High | Medium to High | Very High |
| Backup Power | No Backup | Full Backup | Best Backup |
| Maintenance Cost | Low | Medium | Medium |
| ROI / Payback Period | 3–6 years | 4–8+ years | 4–7 years |
| Ideal For | Grid-connected homes | Remote/off-grid properties | Areas with frequent outages |
Is an On-Grid Solar System Worth the Cost in 2026?
Yes, it is mainly because of the rising cost of grid electricity. Favourable net metering policies also make the installation of an on-grid solar system a wise and cost-effective decision. With an on-grid solar system in place, you can significantly curb your energy consumption as well as your monthly electricity charges. Another favourable aspect is that you get to enjoy a payback period of 4-6 years. You must remember that the ROI for on-grid solar systems will always be higher because of the ever-increasing usage of solar energy.
How to Reduce On-Grid Solar System Cost
Now in India, rooftop on-grid solar systems have become one of the most economical ways to shift towards sustainable, clean energy and reduce the monthly electricity bills. However, there are certain things that you should keep in mind before proceeding with the installation work, such as:
- Choosing the right size
This is a crucial aspect where you need to choose the right size for your on-grid solar system. By doing so, you can ensure that the available space to mount the panels are optimally utilised and there won’t be any unnecessary expenses.
- Apply for a government subsidy
By applying for a government subsidy, you will find that your installation process becomes more economical and helps to save money significantly.
- Select experienced solar installers
By selecting professional and well-experienced solar installers, you can ensure that the whole process is done in a foolproof manner. You can also rest assured that your ROI will be higher.
- Compare quotations
Always do a proper check and analyse the quotations that you receive from various solar system service providers. By doing so, you will be able to lock in the right deal that suits your budget and requirements.
FAQs
on grid solar system is an energy setup that connects the solar panels to your electricity grid.
Yes, they do work year-around but the generation of solar power will get slightly reduced during such conditions.
Yes, you can expand or upgrade your on-grid solar system per your requirements. Just make sure you have sufficient space on your rooftop to do so.
The excess power generated will be exported to the grid. This will be adjusted in the electricity bill via net metering.
Batteries are optional; you can use them if you require backup power, especially during power outages.
Conclusion
One of the smartest ways to power your home or business is to switch over to an on-grid solar system. You will be able to cut down your monthly electricity bills, support a cleaner, sustainable environment and earn power credits via net metering. On-grid solar systems are always the best option when you are looking for long-term savings. You should always seek the technical support and guidance of a professional service provider for the finest results. Want to have a consultation regarding the cost estimates and have your site visited for installation services? Contact Aeco Solar now and be ready to make some substantial long-term savings in an eco-friendly way.
