The problem with a stand-alone power generation system for an individual house is the large difference between base load versus peak load.
I'm not sure what the average energy consumption for a house in India is, but in North America the average house consumes - on average - about 1000 watts every minute all day long.
Now the problem is that the power demand is not constant. Consider that is quite possible for an electric dryer, a large air conditioning unit or electric furnace, hot water heater, electric stove, television, several lights, a computer, a garage door opener, etc. could all be on at the same time. That's called peak demand for that house. So the power supply unit has to be big enough to supply enough power to handle that demand, and that could easily be in excess of 15,000 watts. That means you need a generator (or other electrical supply unit) in the 20,000 to 25,000 watt range to give a sufficient safety factor, and that is going to be very expensive, say in the $50,000 range for a diesel generator of any durability.
But 90% of the time, the house may only have a demand of a few hundred watts of base load. So you've got a generator producing 20,000 watts and only 200 watts being used, so the excess power needs to go into a heat sink (a resistor) so you don't burn out the generator coils. Not very efficient.
An energy efficient home could have microprocessors control the timing of all your big-demand items to avoid high peak demands, but North American society in general is not ready to have to wait to turn on the AC when it is hot outside. Having thousands of homes connected to a grid has the benefit of blending the power demands over more time, but even the large utilities have difficulty meeting the cyclical demands of a 24 hour day and extra hot or cold days. On top of that, there are great economies of scale with large generating systems, so the cost per kwH (kilowatt hour) is inversely proportional to the size of the generator.
There are other options such as small solar and wind connected directly to your house, but they won't be capable of providing enough power for more than a computer and a few lightbulbs - you certainly won't be able to run AC or hot water (unless you have solar hot water). And they only work when its sunny or windy, respectively. Storage of electricity is very inefficient.
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