What is an On-Grid System?
An on-grid solar power system, also referred to as grid-tied or grid-connected, generates electricity from solar panels and integrated it with the local utility grid. During the day, solar modules supply electricity to your home or business. Any surplus energy not immediately used can be fed back into the grid through a grid-tie inverter. This setup allows you to benefit from solar power continuously, while the grid serves as a backup during times of low solar generation. Excess solar electricity transferred to the grid accrues as credits under net metering, which can offset future grid electricity purchases or be redeemed annually.
Components of an On-Grid Solar Power System
1. Solar Panels
They are comprised of photovoltaic (PV) cells that efficiently capture sunlight and convert it into direct current (DC) electricity. Positioned strategically on rooftops or open spaces, their placement is optimized to maximize exposure to sunlight throughout the day. These panels lay a pivotal role in harnessing renewable energy, seamlessly integrating into existing power grids to supplement conventional electricity sources with clean, sustainable power generation.
2. Inverter
The inverter is responsible for converting the direct current (DC) electricity generated by solar panels into alternating current (AC) electricity. This conversion process is essential as AC electricity is the standard used by household appliances and the utility grid. By seamlessly synchronizing solar power with the grid, inverters enable efficient distribution of renewable energy, ensuring compatibility and maximizing the utilization of solar-generated electricity within homes and businesses.
3. Utility Meter (Net Meter)
The utility meter plays a pivotal role as a bi-directional meter that tracks electricity flow to and from the grid. It accurately measures both the consumption of electricity drawn from the grid and the surplus electricity generated by solar panels and fed back into the grid. This allows homeowners and businesses to monitor their energy usage in real-time and facilitates the seamless integration of renewable energy, enabling them to potentially offset costs by earning credits for surplus electricity supplied to the grid.
4. Utility Grid
The utility grid is a crucial component for seamless energy integration. Functioning like a virtual battery, it allows excess electricity generated by solar panels during sunny periods to be fed back into the grid, effectively storing it for later use by other consumers. Conversely, during periods of low solar production, such as at night or on cloudy days, electricity is drawn from the grid to meet energy demands. This bidirectional flow ensures continuous and reliable electricity supply, optimizing the balance between renewable energy generation and grid stability.
How On-Grid Solar Power Systems Work?
An on-grid solar power system operates by converting sunlight into electricity through solar panels composed of photovoltaic cells. This electricity is initially in direct current (DC) form and is converted into alternating current (AC) by an inverter to match the electrical standards of household appliances and the utility grid. The system is connected to the local utility grid, which acts as a virtual battery. During sunny periods, the solar panels may produce more electricity than is needed, and the excess is fed back into the grid, often earning the user credits through net metering, Conversely, when the panels do not produce enough electricity, such as at night or during cloudy weather, the necessary power is drawn from the grid. This integration ensures a continuous power supply without the need for battery storage, though it means the system will not function during power outages unless a battery backup is installed.
Advantages of On-Grid Solar Power Systems
Cost Saving
Net Metering: Excess electricity generated can be fed back into the grid, often earning you credits or payments from your utility company.
Environmental Benefits
Sustainable Energy Source: Solar energy is a renewable resource, providing a sustainable way to generate electricity.
Ease of Maintenance
Longevity: Solar panels have a long lifespan, typically 25 years or more, offering long-term benefits with minimal maintenance.
Higher Efficiency
Increase Property Value
Disadvantages of On-Grid Solar Power Systems
Dependency on the Grid
Initial Costs
Variable Energy Production
Space Requirements
Regulatory Challenges
Utility Company Policies: Some utility companies may have policies or fees that affect the overall savings from an on-grid system.
