In Pakistan, where rising electricity bills and load shedding are common issues, more homeowners and businesses are turning to solar energy. One of the most practical options is the on-grid solar system — a setup that stays connected to the utility grid.
This system is popular because it allows users to power their homes or offices with sunlight during the day and rely on the grid when needed. It’s a smart way to reduce bills, especially for those with high electricity consumption. Unlike off-grid systems that need expensive batteries, the on-grid setup is more affordable and requires less maintenance. It’s ideal for urban areas with a stable electricity supply.
An on-grid solar system, also known as a grid-tied system, is connected directly to the local utility grid. It generates electricity using solar panels and sends excess power back to the grid, allowing users to earn credits or reduce their electricity bills.
What is an On-Grid Solar System?
Basic Definition
An on-grid solar system is a type of solar setup that works with your local electricity supply (WAPDA or KE). It generates electricity during the day using sunlight and stays connected to the grid at all times.
This means you can use solar power during the day and automatically switch to the grid when needed — like at night or during cloudy weather.
It’s also called a:
- Grid-tied solar system
- Grid-connected solar system
This type is commonly installed in cities where a stable grid connection is available and net metering is allowed.
Main Components of an On-Grid Solar System
Here are the core parts that make the system work:
- Solar Panels
Capture sunlight and convert it into DC (Direct Current) electricity. - Grid-Tie Inverter
Converts the DC electricity from the panels into AC (Alternating Current) to power your home appliances. - Bi-Directional Meter
Measures how much electricity you consume from the grid and how much you send back. - Net Metering Setup
Allows you to earn credits for excess electricity sent back to the grid, reducing your monthly bill.
How It Works: Step-by-Step
Here’s a simple breakdown of how an on-grid solar system functions:
- Solar panels produce electricity during the day using sunlight.
- Your home or business uses the solar power first.
- If there’s extra electricity, it goes back to the grid through net metering.
- If your panels can’t meet your needs (like at night), the grid supplies the shortfall.
On-Grid vs Off-Grid Solar Systems
When choosing a solar system in Pakistan, it’s important to understand the difference between on-grid and off-grid setups. Each works differently and serves different needs.
Here’s a simple comparison:
| Feature | On-Grid Solar System | Off-Grid Solar System |
| Grid Connection | Yes | No |
| Battery Required? | No | Yes |
| Power Backup | No (depends on grid) | Yes (battery backup included) |
| Cost | Lower | Higher (due to battery cost) |
| Ideal For | Urban areas with grid access | Remote or rural areas without grid supply |
Quick Summary:
- On-grid systems are best for cities like Lahore, Karachi, and Islamabad, where grid supply is available and net metering is supported.
- Off-grid systems are more suited for villages or remote areas, where electricity from the grid isn’t reliable or even available.
Advantages of On-Grid Solar Systems
Cost Efficiency
- You don’t need batteries, which cuts down installation costs.
- Maintenance is cheaper due to fewer parts.
- In some regions of Pakistan, government support or financing is available for solar installation through banks or renewable energy programs.
Net Metering Benefits
- If your system produces more electricity than you use, the extra units are sent back to the grid.
- You get credit for this excess power through the net metering system, which reduces your future electricity bills.
- This makes it ideal for homes and businesses that use more energy during the day.
Easy Maintenance
- Since it doesn’t use batteries, there are fewer components to manage.
- Most issues are related to the inverter or wiring, which can be easily fixed by certified installers.
- Occasional Solar Panel Cleaning is enough for smooth performance.
Grid Backup
- If your solar panels aren’t producing enough (like during cloudy days or winter months), the grid automatically supplies the rest.
- You won’t face interruptions as long as the grid is working.
Disadvantages of On-Grid Solar Systems
No Backup During Outages
- If there’s a power outage in your area, your on-grid system will also shut down — even if it’s sunny.
- This is a safety feature to protect grid workers.
- When comparing Hybrid vs. On-Grid Solar, it’s important to note that to keep electricity running during load shedding, you’d need a hybrid system with batteries, which increases cost.
Dependency on Grid
- On-grid systems rely on WAPDA or KE for consistent operation.
- They’re not suitable for villages or remote areas where grid access is weak or unavailable.
- In such areas, an off-grid system with batteries is the better choice.
Net Metering Policy Variation
- The benefits of net metering depend on your region’s policy and approval process.
- Some users in Pakistan face delays or limitations when applying for net metering.
- It’s important to check with your local electricity provider (like IESCO, LESCO, or KE) before installing.
Who Should Consider an On-Grid System?
An on-grid solar system isn’t for everyone — but it works well for people who meet certain conditions. Here’s who can benefit most:
- Homeowners in major cities
If you live in Lahore, Karachi, Islamabad, or other urban areas with a reliable electricity supply, an on-grid system is a good fit. Net metering is widely available in these cities. - Businesses with high power bills
Offices, shops, and small factories that operate mostly during daylight hours can cut down monthly electricity costs significantly with an on-grid setup. - Users with heavy daytime usage
If your home uses air conditioners, fans, or appliances during the day, solar can meet most of that demand and lower your grid consumption.
Installation Cost & Payback Period
Cost Breakdown
The total Cost Breakdown of an on-grid solar system in Pakistan depends on the size of the system (kW) and the brand of components used.
Here’s a rough estimate:
- Per kW cost: ₨200,000 to ₨250,000 (as of 2025)
- What’s included?
- Solar panels (Tier-1 recommended)
- Grid-tie inverter
- Mounting structure & wiring
- Installation charges
- Net metering setup and permits
For a 10kW system, the average total cost is around ₨2,000,000 to ₨2,400,000, depending on quality and location.
Payback Period
- Most homeowners in Pakistan recover their investment in 4 to 6 years through reduced electricity bills and net metering benefits, making Solar in Pakistan Costs Benefits & Installation a practical consideration.
- After that, the savings continue for 15 to 20 more years, as solar panels usually come with a 25-year performance warranty.
Is Net Metering Available in Your Area?
Before installing an on-grid solar system, it’s important to check if net metering is approved in your area. In Pakistan, net metering is managed by NEPRA (National Electric Power Regulatory Authority) and implemented through local electricity providers.
How to Check Net Metering Availability in Pakistan:
- Contact your local DISCO (Distribution Company) such as:
- LESCO (Lahore)
- K-Electric (Karachi)
- IESCO (Islamabad)
- MEPCO, FESCO, etc.
- Ask if net metering applications are open for your area.
- Make sure your CNIC and electricity bill are in the same name to apply.
- You’ll also need a net metering-compatible inverter (grid-tie inverter) and a minimum system size of 3kW.
International Reference
- In India, net metering is state-specific and varies across regions.
- In the US, it depends on utility companies and state regulations, with some states offering full credit and others using adjusted rates.
How to Install an On-Grid Solar System
Installing an on-grid solar system involves several steps. Working with a licensed solar company ensures smooth processing and compliance with local policies.
Step-by-Step Overview
- Site Assessment
A technician visits your location to check roof space, sunlight direction, and your electricity usage. - System Design
Based on your energy needs, the installer recommends the right system size (e.g., 5kW, 10kW) and component layout. - Grid Application
The installer helps submit a net metering application to your local electricity company (LESCO, KE, etc.), along with required documents. - Installation
Once approved, solar panels and inverter are installed. Wiring and safety checks are completed. - Net Meter Setup
A bi-directional meter is installed by the utility company to measure both imported and exported electricity. - Inspection and Activation
After inspection by the utility, your system is activated. From here, you can start generating power and receiving net metering credits.
Pro Tips Before Installing
Before setting up an on-grid solar system, keep these tips in mind to avoid common mistakes and get the best results:
- Compare Installer Quotes
Don’t settle for the first offer. Get quotes from 2–3 solar companies to compare Prices, warranties, and Service quality. - Understand Your Monthly Consumption
Check your electricity bills for the last 6–12 months to determine the right system size. This ensures your solar setup matches your actual usage. - Check Inverter Capacity for Future Upgrades
If you plan to add more panels later, make sure your inverter can handle the extra load. Some inverters support expansion, while others don’t.
Conclusion
An on-grid solar system is a smart choice for homes and businesses in Pakistan’s urban areas. It connects directly to the grid, helps you save on electricity bills, and doesn’t require batteries — making it more affordable and easier to maintain.
If you live in a city with a stable grid supply, this system can cover most of your daytime electricity needs and let you earn credits through net metering.
Before installing, always check:
- If net metering is available in your area
- Whether your electricity usage matches the system size
- And compare installer options and warranties
For the best results, contact a trusted solar provider
FAQs About On-Grid Solar Systems
What happens during a power outage?
During a grid outage, an on-grid solar system automatically shuts down for safety reasons. This means you won’t have electricity unless you have a hybrid system with battery backup.
Do I need batteries for an on-grid system?
No, batteries are not required. The system directly uses solar energy during the day and the grid when needed. This helps reduce the overall installation cost.
Can I run AC and appliances on solar?
Yes. If your system is sized correctly, it can easily run air conditioners, refrigerators, fans, and lights during the day. The grid supports your load during peak times or at night.
Is net metering available everywhere?
Net metering is available in most major cities of Pakistan, but approval depends on your local electricity provider. It’s best to check with your regional DISCO (like LESCO, K-Electric, IESCO) before starting.
How long does an on-grid solar system last?
Solar panels come with a 25-year performance warranty, while inverters typically last 8–10 years. With proper maintenance, your system can continue to save money for decades.