RainbowHome insights · Rooftop solar · Karnataka & Tamil Nadu
On-grid vs off-grid vs hybrid solar: which is right for an Indian home?
This is the first fork almost every homeowner hits, and the vocabulary makes it sound harder than it is. There are three system types — grid-tied (on-grid), off-grid with a battery, and hybrid. They differ on exactly three things that matter: what they cost, whether they keep the lights on during a power cut, and whether they can earn you net-metering credit. Get those straight and the right choice for your home is usually obvious.
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The three types at a glance
For a typical Indian home, here is how the three stack up. Costs are relative — see our installed price-per-watt benchmark for the on-grid baseline that the others build on.
| Factor | Grid-tied (on-grid) | Off-grid (battery) | Hybrid |
|---|---|---|---|
| Relative install cost | Lowest | Higher (battery) | Highest (battery + grid) |
| Backup during a grid outage | No (anti-islanding) | Yes (battery) | Yes (battery) |
| Net-metering eligible | Yes | No (no grid link) | Grid-tied portion only* |
| Government subsidy* applicability | Generally grid-connected only | Generally not on same basis | Verify — see note below |
*Potential government subsidies and net-metering terms are set by central and state rules that change over time. See the verification note below before you rely on any figure.
On-grid: cheapest, net-metering eligible, no outage backup
A grid-tied system is panels plus a grid-tie inverter — no battery. During the day it powers your home and pushes any surplus onto the DISCOM network; at night and in the monsoon you draw from the grid as usual. A bidirectional meter records both directions, and net metering settles you on the difference. The grid effectively acts as a free, loss-less battery.
The catch is the power cut. By safety design, a grid-tie inverter performs anti-islanding — it disconnects the instant the grid goes down, so it cannot electrocute a line worker fixing the network. That means a plain on-grid system gives you no backup during an outage, even in bright sunshine. For most city homes on a stable connection this is a fair trade for the lowest cost and the best payback, and it is the configuration the central rooftop subsidy* is generally built around.
Off-grid: fully independent, higher cost, for weak or absent grids
An off-grid system stores its own energy in a battery bank and runs your home with no DISCOM connection at all. It is the right answer where the grid is genuinely absent or so unreliable that you effectively live on backup — remote farmland, a hill property, a site awaiting a connection. Because the battery must be sized to carry your loads through the night and through cloudy spells, the system is larger and costs more than an equivalent on-grid build, and the battery is a consumable that will need replacement over the panels' 25-year life.
Two consequences follow from having no grid link: there is no net metering (there is nothing to export to), and off-grid configurations generally do not qualify for the standard grid-connected residential subsidy* on the same basis as on-grid. For a normal city home with a working connection, off-grid is usually the wrong tool — you would pay for batteries to solve a problem the grid already solves for free.
Hybrid: backup plus export, at a premium
A hybrid system is the "best of both" build: a battery for backup and a live grid connection for export. When the grid is up, it behaves like an on-grid system and can earn net-metering credit on surplus; when the grid drops, it keeps your essential circuits running off the battery instead of shutting down. The cost is the highest of the three because you are paying for a battery bank plus a more capable hybrid inverter.
Hybrid makes sense when outages are frequent or long enough that backup has real value to you — or when you would otherwise buy a separate inverter/UPS anyway, in which case a hybrid can do both jobs. If your grid is stable, the extra spend on the battery typically does not pay for itself on electricity savings alone, so treat the battery as insurance against outages rather than a way to improve payback.
Which fits Bengaluru vs Chennai?
For most homes in both cities, the honest answer is the same: on-grid. Bengaluru (BESCOM) and Chennai (TANGEDCO) both have reasonably reliable urban supply and established net-metering frameworks, so the grid-tied build gives the lowest cost and the cleanest payback. Choose hybrid only if outages at your specific address genuinely bother you — a locality prone to long cuts, an area with recurring monsoon or grid disruptions, or a home where you need essential loads to ride through a cut.
- Bengaluru / Karnataka (BESCOM): On-grid with net metering for most homes. Go hybrid if your area sees frequent or long outages and backup matters to you.
- Chennai / Tamil Nadu (TANGEDCO):On-grid with net metering for most homes. Coastal and outage-prone pockets are where a hybrid's battery earns its keep.
- Anywhere off the grid: If there is no usable connection, off-grid is the only option — size the battery for your worst-case night.
How our directory ranking and estimates work is documented in how we rank and our methodology.
On subsidies* and net metering — please verify
Potential government subsidies* for residential rooftop solar are generally structured for grid-connected systems, and net metering by definition requires a live grid connection. Whether a specific hybrid or battery configuration qualifies — and for how much — depends on central and state rules that change over time. We do not quote a fixed subsidy amount; confirm current eligibility against the official source and your DISCOM before you commit.
- Central rooftop scheme & subsidy* rules: mnre.gov.in
- Karnataka net metering / DISCOM: bescom.karnataka.gov.in
- Tamil Nadu net metering / DISCOM: tangedco.tn.gov.in
Last verified: July 2026. *Subsidy availability, eligibility and amounts are set by government policy, are not guaranteed, and can change without notice.
Frequently asked questions
What is the difference between on-grid, off-grid and hybrid solar?
On-grid (grid-tied) systems have no battery and stay synced to the DISCOM grid — cheapest to install and eligible for net metering, but they shut off during a grid outage. Off-grid systems run on batteries and are fully independent of the grid, which suits places with no or unreliable supply but costs more. Hybrid systems combine batteries and a grid connection, so you get both backup during a cut and the ability to export surplus — at a premium price.
Does on-grid solar work during a power cut?
No. A standard grid-tied inverter is required by safety rules to stop feeding power the moment the grid goes down — this is called anti-islanding, and it protects line workers repairing the network. So a plain on-grid system without a battery gives you no backup during an outage. If uninterrupted supply during cuts matters to you, you need a hybrid system with a battery.
Do I need batteries for home solar in Bangalore?
For most Bengaluru homes on a reliable BESCOM connection, no. An on-grid system with net metering is usually the best value — the grid effectively acts as your 'battery', absorbing daytime surplus and returning credit. Batteries make sense mainly if you face frequent or long outages, or you specifically want backup for essential loads, in which case a hybrid system is the fit.
Is hybrid solar worth the extra cost?
It depends on how much you value backup. A hybrid system costs meaningfully more than on-grid because of the battery and a more capable inverter, and batteries wear out and need replacement over the system's life. If outages are frequent or you already run an inverter/UPS, a hybrid can consolidate both jobs. If your grid is stable, the extra spend often does not pay for itself on savings alone.
Can I get the government subsidy* on a hybrid or off-grid system?
Central government residential rooftop subsidies are generally structured for grid-connected systems, and eligibility rules and amounts change over time. Off-grid and some hybrid configurations may not qualify on the same basis. Treat subsidy* eligibility as something to confirm against the official MNRE guidelines and your DISCOM before you buy — do not assume a fixed amount.
Which type of solar system qualifies for net metering?
Net metering applies to grid-connected systems — on-grid, and the grid-tied portion of a hybrid system — because it depends on a bidirectional meter and a live DISCOM connection to record export and import. A purely off-grid system has no grid connection and therefore no net metering. Exact capacity limits and settlement terms are set by your state regulator and DISCOM.
Next steps
- Not sure how big your system should be? What size solar system does your home need.
- Understand export credit: Net metering in Karnataka.
- Estimate the potential subsidy* for a grid-connected build with our subsidy calculator.
- Compare vetted, neutral options in our installer directory.
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