Introduction

India’s installed solar capacity has crossed 119 GW as of July 2025. This growth is impressive, but getting clean power to where it is needed most remains a challenge. A well-thought-out solar microgrid design in India can bring dependable electricity to homes, schools, and businesses by combining solar panels, batteries, and smart controls. It keeps power flowing even during outages, reduces diesel use, and supports a more sustainable energy mix.

Now that we know how a solar microgrid can help, the next step is understanding how to build one that works in real conditions. In this blog, we explore the design and implementation of solar microgrid systems in India, breaking down every stage from assessing demand to ensuring long term reliability. Read on to see how the right design can turn sunlight into lasting power.

What is a solar microgrid?

A solar microgrid is a localized electricity network that utilizes solar photovoltaic panels as its primary power source, often combined with battery storage and control systems. It can operate while connected to the main grid or independently in “island mode” during outages. Solar microgrids reduce reliance on long-distance transmission, improve energy reliability, and lower carbon emissions, making them especially valuable for remote communities, critical infrastructure, and areas with unreliable grid supply.

What goes into a microgrid’s design and implementation?

Designing a solar microgrid requires careful planning to ensure the system meets the site’s needs in the most efficient way. Here are the fundamental factors and steps that go into solar microgrid design for a given location -

Assessing power demand

1.  Begin by determining the electricity needs of the community or site.

2.  List homes and count appliances such as lights, fans, televisions, pumps, and other devices.

3.  Include schools or clinics and note their consumption.

4.  Calculate peak demand, the highest power draw at any moment, and total daily energy use in kilowatt-hours.

5.  A system serving 50 homes with only lighting will be much smaller than one that also runs refrigerators and irrigation pumps.

6. Factor in future growth since households tend to add devices over time.

Solar resource and site conditions

1. The design must account for the solar irradiance available at the site (essentially, how sunny the location is on average and seasonal variations).

2.  Areas with abundant sunshine can generate more power per panel.

Even within India, this can vary.

1. For example, Rajasthan has higher solar potential than northeastern states with more cloud cover.

2.  Additionally, site conditions like available land or roof area for panels, shading (from trees or hills), ambient temperature (which affects panel performance), and weather patterns are considered.

3. Tools or models are used to estimate expected solar energy per day round the year.

4.  Engineers choose the best tilt for panels and strong mounting, so panels stay safe during rough weather (High winds or cyclones).

5.  Where long monsoon weeks cut sunshine, they plan larger batteries or a secondary power source.

Grid availability and integration

1. A key design choice is whether the solar microgrid will operate completely off-grid or have a grid connection.

2.  If the location is beyond the grid, the microgrid will be a standalone system.

3.  If the main grid is expected to reach or is present but unreliable, officials might plan a grid-interactive microgrid (hybrid setup) that can connect to or disconnect from the main grid as needed.

4.  In such cases, synchronization equipment and protection systems are included.

5.  The distance to the nearest grid substation can influence design decisions.

6.  If it’s very far, the microgrid will be designed for full autonomy; if closer, maybe future interconnection is planned.

7.  Essentially, the reach (or absence) of the central grid is a factor in microgrid planning.

Energy storage and backup needs

Based on the load profile and sunlight availability, the battery storage capacity is determined.

1.  Engineers need to figure out how many hours of autonomy (i.e., running on stored energy) the microgrid should have.

2. For example, if average evening/night usage is X kWh, the batteries must store at least that (plus a safety margin).

If the site must have power even during rainy days, they might increase storage or include a backup generator.

1. If critical loads (like a medical center) must never go down, backup sources are planned.

2.  In some cases, a small diesel generator or other source is integrated to ensure reliability.

3. For instance, to cover an unusually long period of bad weather or to handle occasional peak loads beyond solar capacity.

Optimal component sizing

1. The required size of each component is calculated, i.e., total solar PV capacity (kW), battery bank size (kWh storage), inverter rating (kW), etc.

2.  They simulate scenarios (day/night, summer/winter) to ensure electricity generation will meet demand throughout the year.

3.  Often, a specialized software or model, like the Reference Electrification Model (REM), is used to evaluate different configurations. REM, for example, takes into account location, solar irradiance, population and demand, fuel costs, and more to find the best electrification solution.

4. The goal is to ensure an optimal design. Scenario analysis might show that adding an extra 2 kW of panels sharply improves reliability during the monsoon, so that upgrades become part of the plan.

Financial and economic planning

1.  A microgrid design involves more than engineering; planners must study costs and practical rollout.

2. They total the equipment, installation, and operating expenses, then seek loans, grants, or subsidies.

3. To hold village tariffs low, they weigh cheaper batteries or other trade-offs and tap into solar subsidies.

4. A clear revenue plan, for example, a small monthly fee or per-unit charge, funds maintenance and battery swaps, keeping the system sustainable.

Regulatory and community factors

1. Design and implementation of a solar microgrid also means navigating local regulations (like obtaining mini-grid approvals or wiring safety certifications) and working with the community.

2. If the microgrid is eventually integrated with the state grid, the design must meet the standards of the distribution company.

3. Community engagement is important, too. For example, deciding how many households will be connected initially and what tariff or payment model will be used.

4.      A good design process will involve educating and consulting locals so that the system is accepted and effectively utilized. For instance, training someone local in basic maintenance.

Solar energy microgrid generating electricity from a large field of panels

How can you build a solar microgrid?

A solar microgrid’s design and implementation is a multi-stage process that combines engineering, project management, and community coordination. Here’s a step-by-step guide on how to go about it -

1.  Feasibility study and planning

Begin with a feasibility assessment that examines the community’s energy needs, solar potential, and financial feasibility. Engineers or energy experts carry out a site survey to measure sunlight, load requirements, terrain, and decide if the microgrid will be off-grid or tied to the main grid. Add a regulatory and compliance check: Use BIS-certified PV modules, ensure ALMM-listed modules if you seek subsidies or net-metering, meet CEA connectivity and safety regulations, secure DISCOM interconnection/net-metering approvals, and obtain Electrical Inspector (CEIG) clearance, where state rules require it, if the solar microgrid exceeds a certain capacity threshold. The study answers key questions: Can a solar microgrid meet demand? What capacity is required? What are the estimated costs, funding sources, and tariff options? Solid planning at this stage lays the foundation for a successful installation.

2. Design and sizing

Once feasibility is confirmed, experts prepare a system design covering electrical drawings, component specs, and layout. They size the solar array (number of panels), battery bank (hours of storage), inverters and other gear to match the site’s needs. Simulation tools or calculations fine tune the design. For example - A 30 kW solar panel capacity with 120 kWh of batteries and a 25 kVA inverter will adequately serve a village of 50 households. The plan maps the distribution network (pole positions or buried cables) and includes room for future expansion and backup for critical loads. This design guides installation and regulatory approvals.

3. Arranging finance and approvals

Building a microgrid needs funding from government schemes, company investment, community contributions, or a mix of these. Project leaders raise the budget through CSR grants, loans, or other sources. In India, the MNRE offers up to 30 percent cost support for rural microgrids. Teams apply for these incentives or state programs and secure permits from the local electricity distributor, environmental clearances, and electrical safety approval. Although these bureaucratic steps can be slow, they ensure the project meets all legal and safety requirements.

4.  Procurement of equipment

With funding and permits secured, the team procures every item in the microgrid design: solar PV panels, batteries, inverters, charge controllers, mounting frames, cables, poles, metering equipment, protection devices such as fuses and breakers, and even a backup generator. Procurement might be through vendors or manufacturers - often, quality is very important, since microgrid longevity is essential. Quality certified equipment and slightly oversized parts help ensure reliable operation in harsh conditions, such as sub-zero temperatures in Ladakh. Procurement may involve tenders or supplier quotes and careful logistics planning for remote sites, for example ferrying gear in the Sundarbans or hauling panels to a mountain village.

5.  Installation and construction

Installation begins by preparing the site: building battery and inverter sheds, setting up mounting frames on rooftops or poles, and erecting distribution poles and wiring. Technicians install panels and wire them to combiner boxes and charge controllers. Battery banks go into sheltered, ventilated areas and are hooked up to inverters and control panels. Safety rules guide proper wiring, grounding and protection with fuses and breakers. Finally, distribution lines and meters reach each home, with local electricians helping under supervision to learn the system.

6.  Testing and commissioning

Before a microgrid goes live, it is tested end to end. Engineers confirm panels give the planned power, the inverter delivers AC, and batteries work as designed. They check each home for the correct voltage and trip breakers to prove safety. For grid-tied setups, they test the switch that isolates or reconnects to the grid. Operators learn basics like starting a backup generator and reading control panels. When every test passes, the microgrid is commissioned.

7.  Operation and maintenance

Building a microgrid isn’t the end: maintaining it is critical for longevity. A solar microgrid maintenance plan from day one includes cleaning panels to remove dust, checking the battery health and topping up distilled water in lead-acid cells, inspecting connections for wear, and updating control system software and firmware. A trained local operator or provider must conduct periodic visits. A mini grid in Odisha failed after the cyclone damage went unrepaired. Local training and monitoring user loads prevent overloads and ensure timely repairs.

A large-scale battery energy storage system (BESS) project

Tata Power delivering clean, affordable, and reliable energy through solar microgrid projects in rural India

Tata Power’s Solar Microgrids lays out a clear vision: To bring clean, affordable, and reliable energy to rural India, and use it to lift local economies like small businesses and farms.

Where the projects focus

These projects speak to real needs on the ground -

1. Unelectrified villages that require dependable first-time access.

2. Islands on diesel that can switch to solar for quieter and cheaper power.

3. Fish and prawn farming sites that currently run on gensets and can lower costs with solar.

4. Rural households with micro biogas to support clean household energy.

Impact

1. Powering MSMEs so they move away from diesel and run longer hours.

2. Green irrigation for farmers reduces manual effort and fuel costs.

3. Women’s green jobs and support for micro enterprises, which ties energy access to income.

Bottomline

A well planned solar microgrid can turn steady sunshine into steady power, giving communities reliable electricity, lower bills, and fewer outages. It not only meets today’s needs but also helps build a cleaner and more secure energy future. By choosing the right solar microgrid design, you become part of a growing movement that is changing how India is powered. If you want to play a role in this shift, the best time to start is now.

Frequently asked questions

The frequently asked questions section is a reliable source for unlocking answers to some of the most crucial inquiries. Please refer to this section for any queries you may have.

 

Lead-acid remains familiar and low upfront for short evening peaks, while lithium-ion offers higher cycle life and better depth-of-discharge for longer autonomy. Global reviews show both in use, with lithium gaining share as costs fall. Pick chemistry to match load shape, climate, and O&M capacity during microgrids design and implementation.

 

Key BIS standards for solar microgrid components in India are: modules under IS 14286 series for design qualification and IS/IEC 61730-1 and 61730-2 for safety; utility-interconnected inverters under IS 16221 (Part 1 and Part 2) for converter safety and IS 16169 for anti-islanding; and storage under IS 17092 for electrical energy storage systems, with BMS covered by IS 17387 and lithium-ion cells and batteries under IS 16046 (Parts 1 and 2).

 

Yes. Under PM JANMAN, MNRE supports solar mini grids for PVTG habitations where grid supply is not viable. The scheme provides Central Financial Assistance up to ₹50,000 per un-electrified household covered by a mini-grid, along with appliances like LED bulbs and fans, and outlines state-wise sanction status. This is a useful lever when planning solar microgrid design for deep-rural clusters.

 

Evidence from India-linked programs shows steady improvements when reliable power arrives. Studies report more operating hours, appliance uptake, and revenue gains for small enterprises, plus reduced lighting fuel use. These gains come from a dependable supply rather than kilowatts, which is why thoughtful solar microgrid design pays off for MSMEs.

 

Most projects blend concessional finance, private capital, and results-based or tariff support. Global handbooks outline models like developer-owned mini grids with regulated or contracted tariffs, while India’s broader clean-energy roadmaps highlight credit lines and de-risking tools that can back design and implementation of solar microgrid programs at scale.

 

Lowered solar panel efficiency norms force microgrid designers to compensate with more PV capacity, enlarging system size and costs or reducing reliability in low‑sun hours. This impacts sizing of batteries and inverters, raises capital expenditures, and may require stronger energy management systems to maintain performance. Optionally, adding backup generators or demand‑response strategies becomes essential to meet load requirements and sustain clean, resilient microgrid operation.

 

Definitions overlap. International bodies often use “mini-grid” for community-scale systems that may be standalone, and “microgrid” for systems that can operate connected or islanded within a defined boundary. In practice, both deliver local generation and distribution with controls and storage, so focus on capabilities during microgrids design and implementation.

 

Mini grids commonly start above 10 kW and scale to hundreds of kilowatts or more, serving settlements that are hard to reach cost-effectively by the main grid. Right-sizing in microgrid design matches demand density, productive loads, and ability to pay.

 

For structures, designers typically reference IS 875 Part 3 for wind loads and follow anchoring practices suited to high gusts and heavy rain. Industry guidance and field reviews show failures often come from weak mounting and skipped structural checks. Building to code and verify foundations improves uptime for solar microgrid design in tough weather.

Sources

1. Programme/Scheme wise Cumulative Physical Progress as on 31st July, 2025

2. Community solar microgrids provide a ray of hope

3. Tata Power and rockfeller foundation to setup renewable solar microgrids in India

4. Solar Mini-grids are Spurring Rural Development in India

5. Solar microgrids for rural electrification

6. 110 kW Solar Microgrid – Sundarbans, West Bengal, India

7. Top Five Solar Panel Government Subsidies to Avail in India

8. Solar Microgrid Sparks Social Transformation and Economic Growth

9. Solar Microgrids

10. Solar Microgrids – Customized solutions