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Off-Grid Solar System for Home: Prices, Subsidy, ROI & Working (2025 Guide)

Off-Grid Solar System for Home
Updated on: September 8, 2025

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Switching to an off-grid solar system for home is becoming a popular choice in India, especially in areas with frequent power cuts or limited grid access. Unlike on-grid setups, an off-grid solar system works independently, using solar panels and batteries to store energy for 24/7 use. In this guide, we’ll cover the latest prices in 2025, government subsidies, real ROI examples, and how off-grid systems actually work so you can decide if it’s the right investment for your home.

Quick Answer (For Readers Who Don’t Want to Scroll)

  • Price: ₹65,000–₹80,000 per kW in India (2025).
  • Subsidy: No government subsidy (off-grid not covered).
  • ROI: 7–9 years payback.
  • Best For: Homes in remote villages, hilly areas, or frequent power-cut zones without reliable grid power.

If you live in a city with stable electricity, on-grid or hybrid is better. But if you need independence, off-grid is the solution.

What Is an Off-Grid Solar System?

An off-grid solar system is a self-sufficient power setup that runs entirely on solar + batteries. Unlike on-grid systems, it does not connect to the DISCOM grid, which means:

  • No net metering.
  • 100% electricity comes from solar + battery storage.
  • Works even in areas with no power supply.

It typically includes:

  • Solar panels (generate power)
  • Solar inverter (converts DC to AC)
  • Battery bank (stores energy for night use)
  • Charge controller (protects batteries)

Off-Grid Solar System Prices in India (2025)

System SizeAppliances SupportedApprox. Cost (₹)Daily Power OutputIdeal For
1kWLights, fans, 1 TV₹70,000–₹80,0004–5 units/daySmall homes
2kWLights, fans, fridge, TV₹1.3–1.5 lakh8–10 units/daySmall families
3kWAdd washing machine, small pump₹2.0–2.2 lakh12–15 units/dayMedium homes
5kW2 ACs, fridge, washing machine₹3.2–3.8 lakh20–25 units/dayLarge homes/farms
10kWFull house + farm loads₹6.5–7.5 lakh40–50 units/dayVillas, institutions

Subsidy for Off-Grid Solar (2025 Update)

Under the PM Surya Ghar: Muft Bijli Yojana, subsidies are only for on-grid and hybrid systems (because they reduce DISCOM load).

Off-grid systems don’t qualify for subsidy since they use batteries.

However, some state schemes (J&K, North-East, Ladakh) occasionally provide partial support for remote villages.

If subsidy is a priority, consider on-grid. If independence is a priority, go off-grid.

Real-Life Experiences in India

1. Rajasthan Village (2kW Off-Grid)

A farmer in Barmer installed a 2kW off-grid system for lights, fans, and a TV.

  • Cost: ₹1.45 lakh
  • Savings: ₹1,500/month (diesel generator replaced)
  • ROI: 7.5 years
  • Quote: “No grid lines in our area, solar is the only option.”

2. Kerala Hills (3kW Off-Grid + Backup)

A homestay in Wayanad runs on 3kW off-grid solar with lithium batteries.

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  • Cost: ₹2.3 lakh
  • Replaced frequent generator use during monsoon power cuts.
  • ROI: ~8 years (but improved guest satisfaction).
  • Quote: “Guests love the uninterrupted power, no generator noise.”

3. Ladakh (5kW Off-Grid System)

A family in Leh installed 5kW off-grid solar with heating + appliances.

  • Cost: ₹3.6 lakh
  • Savings: ₹4,500/month (kerosene & diesel avoided).
  • ROI: 6–7 years.
  • Quote: “We survive winters because of solar.”

ROI & Payback Period

  • Diesel users: ROI ~6–7 years (diesel is expensive).
  • Grid backup users: ROI ~7–9 years.
  • Urban homes: ROI not favorable (better to go on-grid).

Off-grid solar is not about quick ROI it’s about energy independence.

Advantages of Off-Grid Solar

  • ✔ Works anywhere (remote areas, villages, hilly regions).
  • ✔ Complete energy independence.
  • ✔ No electricity bills.
  • ✔ Backup during outages.

Disadvantages

  • ❌ Higher cost due to batteries.
  • ❌ No government subsidy.
  • ❌ Batteries need replacement every 5–7 years.
  • ❌ Not ideal for urban homes with reliable grid.

FAQs About Off-Grid Solar System for Home

Can off-grid solar run an AC?

Yes, but you’ll need at least a 5kW system with lithium batteries.

Is there subsidy on off-grid solar?

No, only on-grid and hybrid are subsidized under national programs.

How long do off-grid batteries last?

Lead-acid: 4–5 years
Lithium: 8–10 years

What’s better for a city home off-grid or on-grid?

On-grid, because it’s cheaper and subsidized.

Is off-grid worth it in villages?

Yes, especially where diesel generators or kerosene are the only alternatives.

Conclusion

An off-grid solar system is the best choice if you live in a village, hilly area, or a place with unreliable electricity. While it’s more expensive and doesn’t get subsidies, it offers complete freedom from power cuts and fuel costs.

For cities and towns, on-grid or hybrid gives better ROI. But if your priority is independence, off-grid is unmatched.

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