The importance of solar photovoltaic systems in renewable energy technology is growing rapidly. So is the cost of photovoltaic panels decreasing due to innovative measures and government policies towards development and progress. The demand for renewable energy technology in the day to day life is on a rise due to increased electricity tariff rates, load shedding etc. This paper presents the performance analysis of a residential solar photovoltaic system with utility backup in Nagpur, a city situated in the center of India. The technical and commercial parameters have been analyzed with focus on energy saving. The system has been designed for partial saving of electricity using solar panels, charge controller, inverter, battery and autocontroller. To simulate the system PSpice 9.1 software is used. Solar radiation data of one sunny week in January has been used for simulation analysis. From the case study, it has been concluded that there is partial energy saving in the existing PV system with utility backup.