On-Grid Solar Power Systems vs Off-Grid Solar Power Systems: Their applications & advantages

On-grid solar systems

On grid solar power system

On-grid solar power system


On-grid solar power systems generate power using a solar power system and are directly connected to the utility power grid. These systems send excess power generated by the solar power system to the utility grid and consumers get compensated for the extra power fed back. These systems work in collaboration with the power grid. In the case when there is not enough sunlight to meet your business’ needs, the system runs on the power supplied by the grid. These systems are best suitable when your power consumption is high and you wish to reduce your electricity bills. On-grid systems can be installed with or without net metering. Being connected to the main grid, these systems do not work during power outages.


Businesses can rely on on-grid solar systems to meet their daily requirements, as well as earn income from the excess power generated. On bright sunny days, buildings can generate enough solar energy to power appliances, lights, water heating systems, etc.


1. On-grid solar systems are very cost-effective and easy to install.

2. Businesses can recoup the cost of their investment by offsetting electricity bills in just 3-8 years. If a private, commercial or industrial building sets up a solar PV rooftop system it will be eligible to avail an ‘Accelerated Depreciation Benefit’ which is currently 80% in a year. At this rate, a business can completely depreciate the whole value of the project in approximately 4 years.

3. Residential users and business owners can earn a passive income for the surplus energy generated by the system.


Off-grid Solar systems


Off-grid solar power system roof

Off-grid solar power system roof


Off-grid systems work independently of the grid but have batteries that can store the solar power generated by the system. The system usually consists of solar panels, battery, charge controller, grid box, inverter, mounting structure, and balance of systems. The panels store enough sunlight during the day and use the excess power generated in the night.

These systems are self-sustaining and can provide power for critical loads in areas where a power grid is not available. However, these systems require specialized equipment to function and can be costly to install. These are ideal for businesses that can sustain for a short period of time with no electricity.


Electricity supply in rural and remote areas – Off-grid solar systems can facilitate independent, long-term, and sustainable electricity generation in rural and remote areas.

Power back up in areas with frequent electricity cuts – A number of places in India face frequent power cuts due to power transmission malfunctions, which can hamper operations of companies and public institutions.Off-grid solar systems can provide an economical and viable long-term backup solution to overcome the problems occurring during frequent power cuts.


1. These self-sustainable systems can work independently and do not rely on the grid.

2. They generate enough power that can be stored and used at night or when the power grid is down.

3. These are ideal for remote areas where there is no power access from the grid.

4. Grid failures and shutdowns will not affect your power supply.

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