A homeowner’s handbook
to solar panel On-Grid systems

Key insights into on-grid grid solar systems explained

A homeowner’s handbook
to solar panel On-Grid systems

Key insights into on-grid grid solar systems explained

Introduction


Are you ready to slash your electricity bills while embracing a renewable source of energy? If so, an on-grid solar system could be your ticket to energy independence. By connecting your solar panel on-grid system directly to the utility supply, you can harness the sun’s power without sacrificing access to traditional electricity. This synergy allows homeowners to drastically reduce monthly bills, often earning credits for surplus energy through *net metering. Beyond the financial upside, installing an on-grid solar system reduces your carbon footprint, making it a win-win solution for both you and the planet. 

Curious about what is on grid technology, how a solar panel on grid installation works, or the benefits of a solar grid for home? This blog will guide you through every step of the process. From initial considerations to the nuts and bolts of the components; ensuring you have all the facts before making the switch.  

By the end, you’ll understand why an on-grid solar setup is a smart investment for homeowners looking to merge eco-friendliness with cost savings. Ready to supercharge your home with clean energy? Keep reading to know the full story. 

 

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What is an On-Grid solar panel system?


An on-grid solar panel system, also known as a grid-tied solar system, is a solar power setup that connects directly to the local electricity grid. This configuration allows homeowners to utilize solar energy for daily electricity while needs while remaining connected to the traditional power supply. When solar panels generate more electricity than the household consumes, the surplus is fed back into the grid. Often earning credits or compensation through the application of *net metering, which changes as per each state’s policies. When the solar system's production is insufficient at night or on cloudy days, the home draws power from the grid to meet its energy demands. 

 

How does an on-grid solar system work? 


An on-grid solar system converts sunlight into electricity using photovoltaic (PV) panels. Here's a step-by-step breakdown of its functioning:


1.  Solar energy capture

Solar panels installed on the rooftop capture sunlight and convert it into direct current (DC) electricity. 

 

2.  Turning solar power into alternating current (AC)

The DC electricity produced by the panels is sent to an on-grid inverter, which converts it into alternating current (AC) electricity; the standard form used by household appliances.

 

3.  Powering the home

The converted AC electricity is supplied to the home's electrical system, powering lights, appliances, and other devices. 

 

4.  Excess energy export

If the solar panels generate more electricity than the home consumes, the surplus is exported to the local electricity grid. This process is facilitated by a bi-directional meter that tracks both the energy consumed from the grid and the energy supplied back to it. 

 

5.  Grid Import

During times when the solar system isn't producing enough electricity (e.g., nighttime or overcast days), the home automatically draws power from the grid to compensate for the shortfall. 

 

What are the components of an on-grid solar system? 


An on-grid solar system comprises several key components that work together to harness and utilize solar energy:


1.  Solar panel on grid system

These are the primary devices that capture sunlight and convert it into DC electricity. 

 

2.  Inverter

This device converts the DC electricity produced by the solar panels into AC electricity suitable for household use.

 

3.  Bi-directional meter

Also known as a net meter, it records the amount of electricity consumed from the grid and the surplus energy exported back to it. 

 

4.  Mounting structure

A framework that securely holds the solar panels in place, typically on the rooftop, at an optimal angle to maximize sunlight exposure. 

 

5.  Electrical wiring

Cables and connectors that facilitate the flow of electricity between the panels, inverter, and the home's electrical system.

 

Benefits of On-Grid solar panel systems


Investing in an on-grid solar system offers numerous advantages:


Cost savings

By generating your own electricity, you can significantly reduce or even eliminate your monthly electricity bills. On-grid systems use the local grid as a virtual battery, eliminating the need for costly energy storage. 

 

Net metering benefits

Excess energy produced is fed back into the grid, allowing homeowners to earn credits or receive compensation, further enhancing savings. Although, the application of net metering changes as per the state policy. 

 

Low maintenance

Without the need for batteries, on-grid systems have fewer components that require upkeep, resulting in lower maintenance costs.

 

Environmental impact

Utilizing solar energy reduces reliance on fossil fuels, leading to a decrease in greenhouse gas emissions and promoting
a cleaner environment.

 

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Types of On-Grid solar systems


On-grid solar systems can be categorized based on their capacity and application:


1.  Residential systems : Designed for individual homes, these systems typically range from 1 kW to 10 kW, depending on the household's energy consumption.

2.  Commercial systems : Larger installations meant for businesses and commercial establishments, usually exceeding 10 kW, tailored to meet higher energy demands. 

 

Choosing the right On-Grid solar panel system


Selecting an appropriate on-grid solar system involves considering several factors: 


1.  Energy consumption :
Assess your household's average energy usage to determine the system size required. 

2.  Roof space and orientation : Ensure sufficient and suitable roof space is available for installing the necessary number of panels at the optimal angle.

3.  Budget and financing : Evaluate the initial investment. Explore financing options, subsidies, and incentives available in your region.

4.  Local regulations : Familiarise yourself with local policies, net metering regulations, and any necessary permits for your solar panel on grid installation. 

 

Best On-Grid Solar Systems in India


India's solar market offers a variety of high-quality on-grid solar systems.  

Companies like Tata Power offers grid-tie rooftop solutions tailored for residential use, with system capacities ranging from 1 kW to 10 kW. They provide packages that include high-efficiency panels and inverters, ensuring reliable performance.

 

The Tata Power advantage


1.  The only Indian EPC company with over 30 years of experience, covering the entire solar project lifecycle.

2.  Strong customer financing with 20+ financial institutions, including banks and NBFCs.

3.  Provides lifecycle service and support through more than 225 authorized service partners in over 200 cities.

4.  Ranked as the #1 solar rooftop EPC player for five consecutive years.

5.  Three decades of expertise in solar energy, with over 300 MW of rooftop installations.

6.  Successfully completed over one lakh residential installations.

7.  Nationwide presence, supported by a network of over 550+ channel partners

8.  Providing in-built smart battery management system for prolonged battery life 


Ready to embrace solar power? Talk to our experts

 

Are there government incentives for on-grid solar systems in India?


Yes, there are incentives offered by the govt of India for residential consumers. 


Grid Connected Rooftop Solar Programme

Under the Grid Connected Rooftop Solar Programme, residential consumers can benefit from Central Financial Assistance (CFA) to reduce the cost of installation. The programme provides a subsidy of up to 40% for rooftop solar systems up to 3 kW capacity and 20% for systems beyond 3 kW and up to 10 kW. To avail of these benefits, consumers can apply through the National Portal for Rooftop Solar or their respective State DISCOM portals. 

For more detailed information and to apply, you can visit the official website of the Ministry of New and Renewable Energy (MNRE).

 

Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan
(PM-KUSUM)

The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM-KUSUM) scheme supports individual farmers in solarizing their grid-connected agricultural pumps. This scheme allows farmers to install solar PV capacity up to twice the pump capacity in kW, enabling them to use the generated solar power for irrigation and sell any excess power to DISCOMs. The scheme provides Central Financial Assistance (CFA) of 30% of the benchmark cost or the tender cost, whichever is lower, for the solar PV component. 

For more detailed information and to apply, you can visit the official website of the Ministry of New and Renewable Energy (MNRE) 

 

PM Surya Ghar Muft Bijli Yojana

PM Surya Ghar Muft Bijli Yojana empowers Indian households to adopt rooftop solar, providing subsidies of up to 60% for systems up to 2 kW and 40% for 2-3 kW systems, with benefits capped at 3 kW. The PM Surya Ghar Yojana offers free rooftop solar installations to eligible Indian households. It aims to significantly cut household electricity expenses by up to ₹15,000 annually for those consuming up to 300 units per month, with additional income from surplus power. The streamlined registration and application process is accessible through pmsuryaghar.gov.in. With a budget of ₹75,021 crore until 2026-27, the scheme is a major step towards India's sustainable energy goals. 

For more details and to apply, visit the official website.

 

Bottomline


Switching to an on-grid solar panel system isn’t just smart, it is a total power move for your wallet and the planet! Imagine powering your home with clean, renewable energy while staying seamlessly connected to the grid. You’ll cut down on utility bills, reduce your carbon footprint, and enjoy the satisfaction of contributing to India's green revolution. With just a quick assessment of your energy needs, roof space, and budget, you can unlock a solution that’s both practical and impactful. Plus, with advancements in solar technology, there has never been a better time to join the solar revolution. Why settle for consuming energy when you can create it? 

 

Sources


1.  Tata Power Solar

2.  Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM KUSUM) 

3.  Best On-Grid Solar System in India | The Ultimate Guide to On-Grid Solar Systems

4.  Grid Connected Rooftop Solar Programme

5.  Solar Grid Connected 

6.  PM – Surya Ghar: Muft Bijli Yojana

Frequently asked questions


An on-grid solar panel system, also known as a grid-tied system, is connected to the local utility grid. It allows homeowners to use solar energy for their electricity needs and feed any surplus power back into the grid. 


During a power outage, on-grid solar systems automatically shut down for safety reasons, preventing electricity from feeding into the grid and endangering repair crews. They provide backup power when combined with a battery storage system.


Yes, the Indian government offers subsidies for residential solar installations. For systems up to 3 kW, a 40% subsidy is available, and for systems between 4 kW to 10 kW, a 20% subsidy is provided.


On-grid solar systems require minimal maintenance. Regular cleaning of the solar panels to remove dust and debris, along with periodic inspections by a professional to ensure all components are functioning correctly, will keep the system operating efficiently.


Net metering bills are calculated by measuring the difference between the amount of electricity your solar panels produce and the amount you consume. If your panels generate more electricity than you use, the surplus is sent back to the grid, and you earn credits. At the end of the billing period, you are billed only for net energy use if you've drawn more power than you've generated. If you've generated more energy, the surplus credits can carry over to the next billing cycle or be settled annually, depending on local regulations.


The three main types of solar energy systems are on-grid, off-grid, and hybrid. On-grid systems feed excess energy to the grid for credits, off-grid systems store energy in batteries for remote use, and hybrid systems combine both, offering backup power while remaining connected to the grid.