Quick definition
Quick definition: On-grid solar systems are connected to the utility power grid, allowing businesses to generate their own electricity while maintaining grid connectivity for backup power and excess energy export.
Table of contents
- Understanding on-grid solar systems
- India-specific context
- Practical applications
- How Neufin can help?
- Related terms
- FAQs
- Additional resources
Understanding on-grid solar systems
On-grid solar systems offer four key advantages for businesses:
- Reduced electricity costs: By generating their own power, businesses can significantly lower their monthly utility bills. The average commercial installation can offset 70-90% of electricity consumption.
- Net metering benefits: Excess power generated during peak sunlight hours can be exported to the grid, earning credits that offset nighttime consumption.
- Lower maintenance requirements: Without batteries, on-grid systems have fewer components to maintain, reducing operational costs.
- Government incentives: Businesses can access various subsidies and tax benefits under India’s solar promotion schemes.
India-specific context
In India, the Ministry of New and Renewable Energy (MNRE) has established comprehensive guidelines for grid-connected solar installations. The country aims to achieve 280 GW of solar capacity by 2030. States like Gujarat, Maharashtra, and Karnataka offer additional incentives for commercial solar adoption.
Under the Electricity Act 2003 and subsequent amendments, businesses can:
- Avail accelerated depreciation benefits of 40%
- Participate in state-specific net metering programs
- Access subsidies up to 30% of project cost in some categories
Practical applications
Indian businesses across sectors are implementing on-grid solar:
- Manufacturing units: 100 kW – 1 MW systems for daytime operations
- Commercial buildings: 20-50 kW rooftop installations
- Shopping malls: Large-scale systems (500 kW+) with carport integration
- Hotels: Combined rooftop and facade installations
How Neufin can help?
Neufin helps your company make the switch to renewable energy. We provide the fastest way for companies to buy renewable energy in India. Companies choose Neufin because we provide –
- Guaranteed cost savings – Lower your electricity bills without operational headaches.
- End-to-end execution – From feasibility to power delivery, we handle everything.
- Zero upfront investment options – Easy and flexible financing through Neufin Capital
Related terms
- Net metering
- Solar inverters
- Grid connectivity
- Solar irradiance
Frequently Asked Questions (FAQs)
What is the typical payback period for commercial on-grid solar systems?
The average payback period ranges from 3-5 years, depending on electricity consumption patterns and state policies.
Can businesses operate during grid outages with on-grid solar?
No, on-grid systems automatically shut down during power outages for safety reasons. Hybrid systems are recommended for backup power.
What maintenance is required for on-grid solar systems?
Regular cleaning, annual inspections, and occasional inverter maintenance are typically sufficient for optimal performance.
Additional resources
- MNRE guidelines for grid-connected solar
- State renewable energy development agency websites
- Bureau of Indian Standards (BIS) solar equipment specifications
Last updated: January 2024
Disclaimer: Information provided is based on current regulations and market conditions. Consult qualified professionals for specific advice.
