Top Uses of Solar Electricity and Solar Power Energy in India

Solar electricity generated by rooftop solar panel systems for homes can be used to run households with ease. A typical 2-3 BHK household in India can be supported by a 3 kW rooftop on-grid solar system that can produce approximately 4,200 to 4,350 units* of electricity per year. 

*Please note: A 1 KW solar system in India generates 1,400 to 1,450 units of electricity annually. 

The uses of solar electricity aren’t limited to lighting up homes. Solar electricity can also be used to power commercial buildings, housing societies, hospitals, schools, industries, and even remote rural areas with no grid access. 

Although installing on-grid rooftop solar for housing societies, homes, and commercial buildings is one of the best ways of harnessing solar renewable energy in India, but there are multiple other ways in which solar energy can be used like:

• Solar water heaters and solar thermal collectors for residential and commercial water heating.
• Solar water pumps and irrigation systems for farmers.
• Off-grid solar systems for villages and remote communities where there’s no power grid.
• Solar charging stations for electric vehicles.
• Public infrastructure like solar street lighting, traffic signals, and CCTV systems.

In this blog, you will explore the uses of solar electricity across multiple sectors, how rooftop on-grid solar energy systems can save tens of lakhs of rupees by slashing electricity bills by 90%, and the benefits and limitations of solar energy.    

TL;DR Summary Box: How is Solar Energy Used in Daily Life?

Solar energy PV systems make it possible to use energy in daily life. The solar electricity produced by solar systems can be used to power homes, housing societies, commercial buildings, and industries. It can also be used to charge EVs and light up remote areas with no power grid. 

Here are the key topics covered in detail in this blog:

Topic	Quick Takeaways
What are the uses of solar electricity in India?	Rooftop photovoltaic solar systems that generate electricity for homes, housing societies, commercial buildings, and industries Solar EV charging stations Off-grid setups for remote villages with no power grid Solar water pumps for agricultural purposes Solar street lighting
Is there any other way to use solar energy besides installing solar PV systems?	Yes, solar thermal collectors use heat from sunlight to raise the temperature of water.
What are the benefits of solar renewable energy?	Reduced electricity bills by 90% Carbon offset Massive savings in the 25 years of the solar system’s lifespan
What are the limitations of solar power?	Upfront investment cost

Top 6 Uses of Solar Electricity in India

Multiple uses of solar electricity generated by solar panels include supplying power to homes, housing societies, commercial buildings, industries, hospitals, and schools, powering homes and communities in remote locations with no power grid, and solar EV charging. 

In fact, one of the emerging innovations in solar photovoltaics is Building-Integrated Photovoltaics (BIPV). These are solar panels integrated into walls, roofs, or windows of buildings. They provide both electricity and aesthetic appeal while reducing utility bills.

Let’s check out the 6 major uses of solar electricity generated by solar PV systems.  

#1. On-Grid Rooftop Solar Systems for Homes and Housing Societies

Installing on-grid rooftop solar panels for homes and housing societies is the most practical application of solar electricity. These systems last for 25 years or more with proper maintenance and deliver clean electricity at virtually zero cost after installation. With the right solar system size, many homeowners see up to 90% reductions in their electricity bills, and many also achieve zero electricity bills.

Here’s an example of approximate rooftop solar panel price (the total estimated solar installation cost), annual electricity units generated by the system, and potential savings over 25 years in Nagpur, based on the SolarSquare Blue 6ft base variant with applicable subsidy under the PM Surya Ghar Muft Bijli Yojana:

Solar System Size and Electricity Units Generated Annually	Solar Panel Price in Nagpur With Subsidy (Starting Price – Indicative for Base Variant)*	Solar Savings Over 25 Years of the System’s Lifespan*
2 kWp – 2,800 to 2,900 units	~ Rs. 1.15 lakh	~ Rs. 11.05 lakh
3 kWp – 4,200 to 4,350 units	~ Rs. 1.32 lakh	~ Rs. 16.58 lakh
4 kWp – 5,600 to 5,800 units	~ Rs. 1.77 lakh	~ Rs. 22.11 lakh
5 kWp – 7,000 to 7,250 units	~ Rs. 2.27 lakh	~ Rs. 34.43 lakh
10 kWp – 14,000 to 14,500 units	~ Rs. 5.02 lakh	~ Rs. 68.86 lakh

*Disclaimer: The above-mentioned solar panel price is indicative as of 4th August 2025 for the SolarSquare Blue 6ft variant. The final cost of installing a solar panel depends on your DISCOM charges, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc. Prices are subject to change. Additionally, while calculating savings, we have considered the annual tariff escalation at 3% and the annual degradation at 1%. The actual final savings from solar panel installation depend on the types of solar panels you’ve installed and their efficiency, intensity of sunlight your rooftop receives, orientation of the panels and tilt angle, the pollution level and weather conditions in your city, the temperature, shadow on the roof, impact of dirt/dust, and how well you maintain your panels after installation.

Not based in Nagpur? Use SolarSquare’s Free Rooftop Solar Calculator to estimate solar savings for your city.

#2. On-Grid Commercial Rooftop Systems for Offices and Industries

Commercial and industrial buildings have a massive electricity consumption. It’s exceptionally high during daylight hours when operations are in full swing. On-grid commercial rooftop solar systems help businesses offset a large portion of their power consumption by generating low-cost solar electricity right from their rooftops.

By switching to rooftop solar, businesses can:

• Cut electricity bills 
• Improve profit margins through lower operational costs
• Meet sustainability goals and reduce carbon footprint
• Reduce dependence on diesel generators or high-tariff grid power

#3. Off-Grid Solar Systems for Electricity Supply in Remote Locations With No Grid

Off-grid solar systems are a blessing in villages that do not have a power grid. Unlike an on-grid solar system that’s connected to the power grid through net metering, off-grid solar systems include a battery bank (usually composed of lithium batteries) that stores the electricity generated during the day. This stored power is then used to run lights, fans, mobile charging, and essential appliances at night or when sunlight is scarce under cloud cover.

Impact of off-grid solar systems in villages goes beyond just providing light:

• Schools can run evening classes with working lights and fans.
• Healthcare centers can store vaccines in solar-powered refrigerators.
• Households no longer depend on kerosene lamps. This significantly reduces indoor air pollution.
• Small businesses like tailoring shops, mobile repair centers, and even rice mills can operate independently, improving livelihoods.

#4. Solar EV Charging Stations

India has recently seen a surge in EV vehicles, ranging from luxury brands like BMW launching EV cars. Even auto rickshaws have become electric in many cities. This has increased the demand for solar-powered EV charging stations as they provide a sustainable solution for charging EVs without polluting the environment. 

They use solar panels to generate electricity during the day. This solar electricity is either directly used to charge electric vehicles or stored in battery banks made of lithium batteries for use at night. Many setups are hybrid systems, meaning they’re connected to both solar and grid power to ensure uninterrupted availability.

As the government pushes for EV adoption under schemes like FAME-II, solar EV charging will play a critical role in reducing pollution and making the EV transport ecosystem self-reliant.

#5. Solar Water Pumps for Agricultural Uses

Solar water pumps are electric pumps powered by solar photovoltaic panels. These systems draw energy from sunlight to run AC or DC motors that lift groundwater or surface water for irrigation. 

Unlike diesel pumps, solar water pumps operate without fuel costs, require minimal maintenance, and have zero carbon emissions.

The main components of a solar water pump are:

• Solar PV panels to generate electricity
• A controller or inverter to regulate the electricity generated in the form of DC 
• A surface or submersible pump to lift water
• Batteries or storage tanks for backup

Solar pumps are useful in off-grid agricultural regions where the power grid is either unavailable or expensive. They help farmers irrigate crops more efficiently, saving money on fuel and electricity bills.

The Indian government also offers subsidies  under the PM-KUSUM yojana to help farmers install solar water pumps.

#6. Solar Street Lighting and Surveillance 

Street lighting is essential for safety and visibility. Moreover, it also accounts for a major share of electricity consumption in urban and rural areas. Solar street lights offer a cost-effective alternative for reducing municipal electricity bills, especially in areas where laying grid infrastructure is difficult or expensive.

The solar street lighting systems are off-grid in nature and include solar panels, battery storage, LED lights, and sometimes even motion sensor cameras. 

• During the day, solar energy is stored in batteries
• At night, it powers the lights without drawing a single unit from the grid

The major benefits of solar street lighting and surveillance include:

• Public safety at night in streets, parks, and parking zones
• Reduction in municipal electricity bills
• Solar lights can function during storms or power outages

Alternate Uses of Solar Power Energy Using Heat from Sunlight

Besides photovoltaic technology, which focuses on using sunlight to generate electricity, solar thermal energy is an alternate way of harnessing solar energy. The many uses of solar power energy using heat include solar water heaters, solar thermal collectors, and solar cookers. 

Let’s check out the multiple uses of solar thermal energy:

• Solar water heaters for supplying hot water: Solar water heaters use solar thermal energy to heat water without the need for electricity or gas. These systems consist of solar thermal collectors, an insulated storage tank, and a circulation pump. Sunlight heats water inside the collector tubes. The hot water then flows into the tank for storage. They are most commonly installed on the rooftops of homes.
• Solar thermal collectors for commercial water heating: Solar thermal collectors are designed for large-scale water heating in commercial and industrial settings. These systems use flat-plate collectors or evacuated tube collectors to absorb heat from sunlight and transfer it to water or another fluid. This hot water can be used in canteens, dairies, food processing facilities, hotels, and hospitals, where hot water is needed in bulk.
• Solar cookers: They use the sun’s heat to cook food without the need for any fuel or electricity. These typically use reflective mirrors or parabolic dishes to focus sunlight onto a cooking pot or tray.

What Are the Benefits of Solar Power Energy?

Using solar energy to generate electricity over traditional and polluting fossil-fuel-based electricity has multiple benefits, including a reduction of electricity bills by 90%, a reduced carbon footprint, and massive savings since solar electricity is free.

Let’s check out all the benefits of solar power energy in detail:

• Electricity bills shrink by at least 90%: Installing on-grid rooftop solar systems result in lower electricity bills. Many of our customers also report getting zero bills after going solar.
• Massive savings in 25 years: Installing on-grid solar means you no longer have to pay for expensive grid electricity that inflates by 3-6% every year. If you look at these savings from a 25-year window, you’ll be saving tens of lakhs of rupees that would otherwise go into electricity bills.
• Reduction in carbon footprint: Installing a 1 kW solar system is equivalent to planting 39 full-grown trees, removing approximately 25,872 kgs of carbon from the atmosphere over the system’s 25-year lifespan. 

Curious how much good your rooftop solar system can do for the planet? Here’s how each system size compares to planting trees and reducing carbon emissions over 25 years.

Solar System Size	Equivalent to How Many Full-Grown Trees?	Carbon Offset in 25 Years
1 kW	39	25,872 kgs
2 kW	78	51,744 kgs
3 kW	118	77,616 kgs
4 kW	157	1,03,488 kgs
5 kW	196	1,29,360 kgs
10 kW	392	2,58,720 kgs

What Are the Limitations of Solar Renewable Energy?

The primary limitation of solar renewable energy is the upfront installation cost that goes into setting up a solar PV system. But even that is an investment rather than an expense. 

Here’s a simple example that proves solar is an investment, not an expense: if you’re paying ~ Rs. 1.77 lakh* in Nagpur to install a 3 kW solar system, this system will save you ~ Rs. 22.11 lakh* in 25 years of its life. On top of it, you’ll be offsetting 77,616 kgs of carbon from the atmosphere.

*Please note: The above-mentioned solar panel price is indicative as of 4th August 2025 for the SolarSquare Blue 6ft variant. The final cost of installing a solar panel depends on your DISCOM charges, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc. Prices are subject to change. Additionally, while calculating savings, we have considered the annual tariff escalation at 3% and the annual degradation at 1%. The actual final savings from solar panel installation depend on the types of solar panels you’ve installed and their efficiency, intensity of sunlight your rooftop receives, orientation of the panels and tilt angle, the pollution level and weather conditions in your city, the temperature, shadow on the roof, impact of dirt/dust, and how well you maintain your panels after installation.

In fact, if you think you can’t afford to go solar, we’d say, think again. The government offers a subsidy to reduce the solar system installation cost. Moreover, banks provide loans for the same. SolarSquare has specially introduced a zero-investment plan to make going solar extremely affordable. 

• Zero initial investment: The government subsidy you receive is equivalent to your down payment. It means that what you pay now as a down payment, you get back as a subsidy. 
• EMIs matched to savings: Your monthly EMI is designed to match what you’re saving on electricity bills. Since your bill drops by at least 90%, you’re not spending anything extra. The amount you used to pay to your discom (electricity company) now goes towards reimbursing your loan.
• Quick loan approval: Get your loan approved in less than 24 hours for a hassle-free start.
• Flexible payment terms: Choose a repayment period anywhere between 6 and 60 months based on what works best for you.

Conclusion

Solar electricity generated by solar panels can be used to power homes, housing, societies, commercial buildings, and industries. In fact, solar electricity is also used for EV charging, solar street lights in rural areas with no power grid, and running solar water pumps for agricultural uses. Although there’s an upfront investment cost, it breaks even in 3-5 years. After that, you get free electricity from sunlight for more than 2 decades.

If you’re planning to go solar and have questions regarding the same, you can book a free solar consultation with SolarSquare or download our free solar handbook.

FAQs

Q1. Where is solar electricity used?

Ans. Solar electricity is used in homes, housing societies, offices, factories, schools, hospitals, street lighting, EV charging stations, and remote areas without grid access.

Q2. What are the benefits of using solar power?

Ans. Solar power reduces electricity bills by at least 90%, cuts carbon emissions, and provides energy independence with clean, renewable electricity.

Q3. How is solar energy useful in daily life?

Ans. Solar energy powers household appliances, lights, fans, water heaters, EV chargers, and agricultural pumps, making it practical for everyday use.