On Grid Vs Off Grid: Choose The Best Solar Energy For Your Home


on-grid vs off-grid

As the use of solar power becomes more prevalent, people have been talking about solar power—but only recently has it become a viable option for a large number of people. With the rising cost of electricity and the increasing cost of fossil fuel energy sources, people are looking for alternatives that will help reduce their carbon footprint and lower their electric bills.

In addition to being an environmentally friendly alternative, solar power offers people who use it the ability to generate their own electricity from the sun. But just because solar power is becoming more popular doesn’t mean that it is a full-proof solution to all of your energy needs.

That’s where the flexibility of off-grid and grid-tied comes in. So what is the best option for those people? Well, there are pros and cons to both. But before that, let’s go over and see how these systems work and their main differences.

On-Grid (Grid-Tied) Solar Energy System

If you have heard of on-grid, you probably have heard of grid-tied as well and they are often used interchangeably. Grid-Tied Systems (GTS) are the most common type of solar system where the energy produced by solar panels is directly fed into the grid. In a way, the grid is used as storage in the day when your panels generate a surplus of power. In return, you are credited for the energy you put into the grid.

Most states, where net metering is applicable, you can sell the excess power at the same rates they purchase it for. When night falls or rainy days where your panels don’t generate enough, your systems draw the power back to supply your home and offset the credits you have in your account.

That way, you reduce your utility bills significantly without the need for any battery storage capacity. The grid-tied system generally costs lower compared to other configurations as you do not need to buy huge expensive battery banks. As good as it sounds, they have disadvantages too.

If the grid is down, your system goes go down together, leaving your home out of power. Needless to say, you lose output from the solar array too. This is due to the protection feature of the grid-tied inverters to keep the utility workers safe when working on the grid, which will only resume operations after the grid is restored.

In this video, the moving diagrams are an excellent representation of how the power flow throughout your system.

Here is the summarized table of the pros and cons: 

ProsCons
Credits for surplus power you generatedGrid power failure will leave your home out of electricity and lose solar output
Lower demand charges and peak charges on utility billsIncur energy cost during night time or cloudy days
High flexibility when sizing your solar output 

Off-grid Solar Energy System

An off-grid system does not have the power flow in a grid-tied system. Instead, it works in a completely independent fashion from the grid. An off-grid system does not require the grid to supply power to your home. You are your own power source. The energy produced is supplied to the home and any surplus will be stored in your battery banks as a reserve for rainy days.

Unlike grid-tied, this system is can be self-sufficient and you don’t have to worry about the power grid going down or the utility company cutting off your power. This is very suitable for remote locations and those who live in areas where there is no power grid. If you plan your solar energy system and monitor usage well, you can produce all the energy you need for your home without having to worry about power outages. 

However, they have their disadvantages as well.

Off-grid systems’ initial investment cost is higher than grid-tied systems because you need to buy your own batteries. The size of your power bank largely depends on your energy needs and how much backup power you need on days without sunlight. So, if you go off the grid entirely, you’ll need a huge battery capacity to ensure that you have enough to run your home for at least a few days. Any long winter season will drain your battery more than it can store and leave you without electricity.

Not to forget, batteries deteriorate over time and have a short lifespan of 5-15 years. 

ProsCons
Increasing electrical rates do not affect youHigh initial investment and maintenance cost
Self-sufficient even in very remote locationsLimited battery storage capacity
Grid power outages do not affect you May require backup generator

Here is another video that differentiate both on-grid of off-grid system.

Hybrid Solar Energy System

Just when you thought you can’t get the best of both worlds, the hybrid system is a combination of grid-tied and off-grid systems. They are ideal for homes that are very dependent on the uninterrupted electrical supply.

With a hybrid system, you will have solar power flowing to your home and charges the batteries just like the off-grid system. Any excess can be exported to the grid. If the grid goes down, your system will still be able to supply power to your home with battery banks as a backup power source.

This system is the most reliable and cost-effective compared to an off-grid system. You can get the benefits of both systems without the need for a backup generator. They can be easily programmable to use the stored power during peak charges and back feed the grid when it is most rewarding.

Your batteries requirements can be lesser than an off-grid system and add them phase by phase at a later date, which will alleviate your total budget spent. 

ProsCons
Uninterrupted power supplyKnowledge to operate, control the energy flow to optimize maximum gains
Better power and cost managementParts and components for hybrid system are more expensive and limited
Lesser batteries mean lower maintenance cost 

Which Solar Power System Should You Choose?

The factors to consider when selecting a solar power system are many. The choice will be influenced by your current energy needs, the solar power system’s features, your financial situation, and other considerations. Here are some of the factors to consider:

Cost of the Solar Power System and Return on Investment

The cost of the solar power system will vary and usually increases with a larger storage system. Batteries make up the bulk of the system cost which will take the longest time for an off-grid system to completely recover the initial investment. On the other hand, solar panels are so much cheaper, and storing energy in the grid might seem to be a better option.

Availability of Grid in your Location

Your location will also have a major impact on your choice. Off-grid systems are usually suitable for remote areas where connecting to the grid is not possible.

For those that have an option to connect to the grid, it is best to work out the exact cost of each type of system against electricity rates to work out the break-even point.

Uninterrupted Power Supply Necessary

We all know it causes inconvenience during outages. You wouldn’t want your food spoiling, or your air conditioning to stop working, right? This is where a hybrid system can come in handy to supply power to selected important equipment with battery packs.

As technological advancement continues, the solar energy system is becoming more and more cost-effective. Solar panels efficiency has increased and batteries cost are expected to reduce. This makes the hybrid system exceptionally attractive for most households. Yet, you need to carefully select the solar power system that best suits your needs.

Eventually, it all depends on the homeowner’s preference and needs.

More Helpful Solar Energy Information

  • How Many Solar Panels Do I Need To Go Off The Grid? – In here, we’ve got a step-by-step guide on how to calculate your energy requirements and solar array size for your off-grid home.
  • How Do I Power My House Off The Grid? – If you are looking for various options to power your off-grid home and don’t know where to look, check out these 5 options in this article and decide for yourself.
  • More Lower Or Less Higher Wattage Solar Panels? – Are you confused about choosing the right panel wattage and size? This post compares the cost, efficiency and panels footprint so that you can get the best out of your solar array!
  • How To Choose A Solar Charge Controller? – It might be tough to understand if you don’t know how to choose a charge controller. But this post will help you get a clear idea of what to look for and how to choose a charge controller.
  • How Many Batteries Do I Need To Go Off-Grid? – Batteries are very expensive and oversizing is not a smart move! This post will break down the itsy-bitsy details and will help you understand how to calculate the required number of batteries for your off-grid home.

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