Whether you’re set on installing solar panels on your roof or just getting curious, deciding whether or not to connect your system to the grid is one of the first and most crucial steps in developing a solar energy system for your home.

With a grid-tied solar power system, your home maintains its connection to the mains electricity supply. When a household’s electricity needs exceed what the power company can generate, the difference is paid for by solar panels. That is exactly what it sounds like: a solar power system that doesn’t connect to any larger grid. No connection to the utility grid means you must rely on solar panels, batteries, or backup generators to supply your home’s electricity needs.

The terms “grid-tied” and “off-grid” are not mutually exclusive, and there is a third option in between. As a third option, the hybrid system keeps a link to the power grid while also incorporating energy storage, as do most off-grid systems.

Which one do you think fits your needs best?

For homes that are in close vicinity to an existing electricity grid, grid-tied remains the most common and cost-effective choice. Off-grid systems are common in outlying areas where expanding electricity lines would be too expensive due to the need for batteries and/or gas generators. Hybrid systems cost somewhere in between these two options and provide the greatest options for homeowners looking to maximise their returns from selling excess energy back to the grid.

The breakdown is that easy. In addition to considerations of expense and convenience, your personal energy and environmental goals, as well as a few site-specific characteristics, should guide your decision to remain connected to the grid or cut ties. Below, you’ll find detailed descriptions of each system to help you make a decision.

On-Grid Solar Panel Systems

One of the most common preferences is the grid-tied system because of its relative ease of implementation. The initial investment is minimal for grid-connected systems, and they are simple to incorporate into your lifestyle.

Installing batteries or a backup gasoline generator is unnecessary because your local utility will supply power when the solar panels cannot, such as during the night or on overcast days. Grid-connected setups also have greater scalability options. In other words, homeowners don’t have to instal as many panels as would be necessary to satisfy the whole energy needs of their homes, but rather can instal as many as they can afford.

Because of this adaptability, grid-tied systems are typically more affordable. They can be made in such a way that more panels can be added later, which is useful if you want to purchase an electric car in the near future.

Solar panels can earn you electricity credits when they create more power than your home needs, which frequently happens during the hot afternoon sun. After accumulating these credits, you can use them at times when the panels aren’t producing. Net-metering refers to this procedure and is crucial to the financial viability of grid-connected systems.

It is crucial to research the net-metering policy of your local power provider, as net-metering arrangements vary by utility and state. Your monthly energy bill may be reduced by the amount of excess electricity your grid-connected system returns to the grid.

Close connection to the power grid is necessary for grid-tied solar systems to be economically viable. Transmission line extensions can be costly; hence off-grid solar panel systems are frequently used in rural areas. If your business or residence is further than a hundred yards from the main power line, you may want to look into off-grid energy sources.

It’s also important to remember that even when the sun is shining, a grid-tied system won’t produce electricity during an outage unless you have a means of storing the energy generated. Utility personnel need the power to be out so they can make repairs without risk. During power outages, it is important to turn off solar power systems that are connected to the grid so that they do not send any unexpected solar energy back through the lines.

Net Metering

Net metering, also known as net billing, is one of the primary benefits of installing a solar power system, as it allows you to sell excess electricity your panels generated back to the utility company. If your solar photovoltaic system generates more electricity than your home needs on a sunny day, the excess energy is sent back towards the utility grid.

This has the same effect as running your electricity metre backwards. When this occurs, the local energy provider will typically issue you credits for the power generated by your PV system, provided that it is connected to the grid.

In the event that you use more electricity than you produce during the billing period, you will be charged the standard rate for the “net quantity” of electricity used. If, on the other hand, you produce more solar than you need in a given month, you will be credited for the “net quantity” of electricity created, which could be a negative repayment to you or the individual customer, depending on the specifics of the arrangement.

If your utility company supports nett metering, you may need to replace your existing power metre with a second, single-direction metre when you set up your PV system. To lower your monthly power cost, you can instal a new metre that measures your net energy consumption (the amount of energy that enters plus the amount that leaves the grid). However, the electricity provider you use may not buy back the power your home solar panel array produces.

While nett metering is the best option for selling extra solar power, some businesses purchase back energy at a rate that is lower than what you pay for electricity at the wholesale level. To achieve a break-even point, you might have to produce more solar energy than you regularly consume.

Off-Grid Solar Panel Systems

If you want to cut all ties with your utility company, or if your home or business is in a particularly isolated area, an off-grid solar system is the way to go. Due to the necessity of a backup generator or battery storage system, off-grid systems are more involved and costly than their grid-connected equivalents.

Since there is no way to connect to the electricity grid, these are essential for use on cloudy days. The sun’s extra energy can be stored in a battery bank and then released at night or at other peak demand times.

In order to properly power your home around the clock with an off-grid solar installation, you will need to invest thousands more in extra equipment. If your property is located far from the electricity grid, however, investing in solar batteries may be more cost-effective than extending the electric lines, especially if doing so requires traversing rough terrain.

Situations exist where off-grid solar is preferable, such as in outlying structures on a big property where the main compound is still connected to the grid.

Some environmentally aware customers, even if they are located close to the utility company’s power lines, still choose to instal their own power generation systems. An additional perk of going completely solar is that you’ll never have to pay another dime to the energy company again.

Clients who want to go off-grid also avoid contributing to the carbon footprint of their utility provider and the inefficiencies of energy distribution.

The prospect of stable electricity costs and protection against unpredictable net-metering policy changes from utilities is appealing.

Since batteries and other accessories are required for the off-grid solar system, it will be more expensive. As a result, stricter limitations are placed on the size of solar power systems. Your building will need a sufficiently sized panel array, or you will need to instal backup power sources.

Since this is the case, off-grid solutions are best suited to houses with modest electricity demands, such as net-zero houses or those who are interested in energy-saving retrofits.

Solar customers living off the grid should be ready for temporary outages even if their systems are correctly sized. The sun must eventually return to recharge the batteries after they have been depleted by unforeseen events. It is for this reason that many people who live off the grid also choose to instal a gas-powered backup generator.

Hybrid Solar Panel Systems

The hybrid option, also known as grid-tied with storage or solar+storage, is the result of combining features of both on-grid and off-grid systems.

Any solar power system with a storage component that is not designed to operate independently from the grid is considered a hybrid system.

As the efficiency and cost of solar battery technology improve, more and more people are opting for hybrid systems. In addition, creative regional incentives and programmes to promote the installation of battery reserves for increased energy reliability have begun cropping up across the country.

Hybrid systems are more affordable than completely off-grid ones but still more expensive than staying connected to the grid, so it’s important to research any available rebates or other financial incentives with your installer.

Some hybrid systems rely solely on their batteries for emergency power during blackouts. Battery storage is used by some hybrid systems to avoid paying higher time-of-use charges for power. Hybrid solar power systems are ideally suited to maximise net-metering savings as “smart solar” technology advances and utilities increasingly adopt time-weighted rate structures.

Hybrid systems won’t be less expensive than most grid-tied choices due to the additional cost of battery storage. Costs are lower than they would be for a completely off-grid system because the battery bank doesn’t have to be as large.

Whether your system is grid-connected, off-grid, or a hybrid, you will reap the benefits of solar in the form of cheaper energy costs and a smaller carbon footprint. A trained IPS system expert will work with you to develop a solar energy system that meets your needs while staying within your price range and meeting your energy needs.

So, Which One Is More Superior?

It really depends on your specific situation. In some cases, a grid-connected PV system may be the better option, while in other cases, an off-grid system may be more suitable. Here are some factors to consider:

• Cost: In general, grid-connected PV systems tend to be less expensive than off-grid systems because they don’t require batteries or other specialised equipment.
• Reliability: Off-grid systems are generally more reliable because they don’t rely on the power grid, which can be subject to outages. However, grid-connected systems can be designed with backup power systems to provide reliability in the event of an outage.
• Flexibility: Grid-connected PV systems allow you to use power from the grid when your solar panels aren’t producing enough electricity, while off-grid systems require you to have enough stored power to meet your needs at all times.
• Environment: Both grid-connected and off-grid PV systems can provide clean, renewable energy. However, off-grid systems often require the use of batteries, which can have environmental impacts.
• Location: The feasibility of a grid-connected or off-grid PV system will depend on your location and the availability of the power grid. In some remote areas, an off-grid system may be the only option.

Going off-grid means you are not connected to the electricity grid and solely rely on your solar panel system for power. This can be a good option for those who want to be self-sufficient and not rely on the electricity grid, but it can also be more expensive and require a larger solar panel system.

On-grid systems, on the other hand, are connected to the electricity grid. This means that any excess power produced by your solar panels can be sold back to the grid, and you can also draw power from the grid when needed. This can be a more cost-effective option, especially if you live in an area with good solar resources.

Hybrid systems are a combination of off-grid and on-grid systems. They allow you to have some level of independence from the electricity grid while still being connected to it. This can be a good option if you want the benefits of both off-grid and on-grid systems.

Ultimately, the best option for you will depend on your specific circumstances, including sunlight availability, your budget, and your energy needs. It’s a good idea to consult with a professional to determine the best solar panel system for your needs.

FAQs About Solar Panel Systems

What Happens to Solar Panels After 25 Years?

After 25 years, solar panels typically begin to lose some of their efficiency. However, this doesn’t mean that they stop working altogether.

Most solar panels are designed to last for decades, and some are even warrantied for up to 30 or 40 years.

Even after 25 years, solar panels can continue to generate electricity, but at a lower output than when they were new.

Over time, the efficiency of solar panels can continue to decline, and eventually they may need to be replaced. However, this is not necessarily a concern for most people, as the average lifespan of a solar panel system is much longer than 25 years.

Which Solar Panel System Is Best for Homes?

It depends on your individual needs and situation.

On-grid systems are connected to the power grid and can provide backup power during outages, while off-grid systems are not connected to the power grid and require battery storage to provide power during outages.

An on-grid system is typically the best choice for most homeowners, as it allows you to take advantage of net metering and other incentives offered by utilities. Off-grid systems are more suitable for remote locations where grid power is not available. Ultimately, the best solar system for your home will depend on your specific energy needs and requirements.

How Much Storage Would a Solar-Powered-Home Need to Be Off-Grid?

It depends on a number of factors, including the size of the solar panel system, the amount of electricity the home uses, and the amount of sunshine the area receives.

As a general rule, a solar-powered home that is completely off-grid will need a significant amount of battery storage to provide enough power during periods of low or no sunshine.

This can be a costly and complex undertaking, so it is usually only recommended for homes in remote locations where grid power is not available. For most homeowners, an on-grid system that is connected to the power grid and can provide backup power during outages is a more practical and cost-effective option.

Should You Store Excess Solar Energy or Use Solar Net Metering?

Solar net metering is a program offered by many utilities that allows homeowners with solar panel systems to sell excess electricity back to the grid.

This can be a good option for homeowners who generate more electricity than they need, as it allows them to offset their energy costs and potentially even earn a profit.

However, not all utilities offer net metering, and the terms and conditions of these programs can vary. In some cases, it may be more advantageous for homeowners to store excess solar energy in a battery system instead of selling it back to the grid.

This can be especially true if the utility does not offer net metering, or if the rates they pay for excess electricity are not very favorable. It’s important to compare the costs and benefits of net metering and energy storage to determine which option is best for your situation.

Can Surplus Solar Energy Be Stored, and Then Sold Back to the Grid?

Yes, it is possible to store excess solar power and also sell some power back to the grid. This can be done with a combination of a solar panel system, battery storage, and a grid-tie inverter.

The solar panel system generates electricity, which is used to power the home and charge the battery. Any excess electricity is sent to the battery for storage.

The grid-tie inverter then connects the system to the power grid, allowing the homeowner to sell excess electricity back to the utility.

This type of setup allows homeowners to use the stored solar power during times when the panels are not generating enough electricity, and to sell excess power back to the grid when their energy needs are low.