On-grid, off-grid or hybrid solar
The three system types differ in what happens when PSPCL supply goes off. That one difference decides the batteries, the subsidy and the price.
Updated 11 September 2026
| On-grid | Hybrid | Off-grid | |
|---|---|---|---|
| Connected to PSPCL | Yes, with a net meter | Yes | No |
| Batteries | None | Yes | Yes |
| Power during a cut | No | Yes, from the batteries | Yes, from the batteries |
| Surplus units | Exported through the net meter | Charge the batteries first, depending on setup | Charge the batteries; the rest is unused |
| PM Surya Ghar subsidy | Yes, up to ₹78,000 for a home | Yes, up to ₹78,000 for a home | No |
| Relative cost | Lowest | Highest | High |
| Upkeep | Panel cleaning | Panel cleaning, battery replacement over the years | Panel cleaning, battery replacement over the years |
| Best for | Cutting the bill | Cutting the bill and keeping power on during cuts | Sites with no reliable grid supply |
On-grid: the one that cuts your bill
An on-grid system feeds your home first and sends any surplus to PSPCL through a bi-directional net meter, and at the end of the billing cycle you pay for the net units. With no batteries, it is the cheapest system per kW. It gets the PM Surya Ghar subsidy, as hybrid does, because both are grid-tied and net-metered.
The catch is that it switches off when the grid does. That is deliberate: it stops power from your roof reaching PSPCL line workers during a cut.
For most Punjab homes using more than 300 units a month, and for businesses, this is the right choice. Size it to your use. For a home, the aim is usually to bring net units under the 300-unit line, which takes the bill to zero.
Hybrid: bill savings with backup
A hybrid system is an on-grid system with batteries and a hybrid inverter. It runs the house on solar, charges the batteries and draws on the grid when it needs to. During a cut, the batteries keep your chosen loads running.
The batteries make it more expensive, and they need replacing during the life of the panels, but it gets the same PM Surya Ghar subsidy as on-grid, up to ₹78,000 for a home. Choose hybrid when power cuts cost you something: a home office, a clinic, medical equipment, or a shop that loses sales when the lights go. See hybrid solar systems for the UTL kits we supply.
Off-grid: no grid connection at all
An off-grid system stores solar power in batteries and runs your loads from them, with no connection to PSPCL. It suits farmhouses, tube-well rooms and sites where the grid is unreliable or not available. Two of our Google reviewers in Mohali chose off-grid systems, a 3 kW and a 5 kW. See off-grid solar systems.
Which one should you choose?
- If your bill is the problem and you use more than 300 units a month, go for on-grid from 3 kW upwards, or hybrid if you want batteries as well. Both are subsidised.
- If your bill is the problem, power cuts hurt and you want less than 3 kW, choose hybrid. Our on-grid systems start at 3 kW, while hybrid is available from 1 kW and still carries the subsidy.
- If there is no reliable grid supply, choose off-grid. It gets no subsidy at any size, because it isn’t net-metered.
- If you use 300 units a month or less, your bill is already zero. Solar only makes sense if backup matters to you, and then the choice is hybrid (subsidised) or off-grid (not subsidised).
Questions we are asked
Does an on-grid system work during a power cut?
No. For safety, an on-grid inverter switches off when the grid fails, so PSPCL line workers are not exposed to power fed back from your roof. If you need power during cuts, you need a hybrid or off-grid system with batteries.
Which system type gets the PM Surya Ghar subsidy?
On-grid and hybrid, since both are grid-connected and net-metered, which is what the subsidy requires. RSK Solar Energy's hybrid systems are grid-tied with a battery added and stay connected to PSPCL, so they get the same subsidy as on-grid. Off-grid systems have no grid connection and do not qualify.
Which is cheapest?
On-grid, because it has no batteries. Hybrid and off-grid systems cost more because of the batteries, which also need replacing during the life of the panels. Hybrid does get the same subsidy as on-grid, which narrows the gap.
Which type should a home in Mohali choose?
If you use more than 300 units a month and want to cut the bill, on-grid, because of the subsidy and the net meter. If frequent power cuts are the bigger problem, hybrid. If there is no reliable grid supply, off-grid.