There are a number of different options to choose from when it comes to establishing a solar power system. And because you’re investing in a piece of equipment that will serve you for many years to come, you want to ensure that the decisions you make are sound. The distinction between off-grid solar vs on-grid solar will help you make a perfect choice.

If you work with a qualified solar installation, they will be able to walk you through the process of making these decisions and help you choose the system that is most suited to your environment. However, doing some preliminary research before beginning the project is not going to hinder you in any way. Because of this, we are going to discuss the four key distinctions between solar power systems that are connected to the grid and those that are not connected to the grid in order to assist you in determining which type of solar power system will work best for your particular solar installation.

What Is Off-grid and On-grid Energy?

The major difference between the two is that an on-grid solar energy system, also known as grid-tied, is connected to the utility grid. In contrast, a solar energy system that is off-grid does not have any connection to the utility grid.

Your access to electricity, the necessary equipment for handling excess output, what takes place in the event that the grid goes down, and how you are billed for electricity will be determined by whether or not you have an off-grid or on-grid system.

Differences Between Off-grid And On-grid Solar Energy

Electricity Access with Off-Grid Solar

What exactly does the term “off-grid” solar mean? If you choose to power your house or place of business with an off-grid solar system, you will have to rely only on on the sun and the energy that may be stored in batteries.

If you don’t have batteries or another way to store your energy, you will either have a reduced amount of electricity or none at all while it is cloudy outside, and you will be complete without electricity throughout the night.

In the event that you require additional electricity, you will not have access to it if you are using an off-grid system. To power your equipment, you can only use the energy that you are currently creating and that which you have stored.

Only in these two locations will you have access to electricity if you choose to install a solar power system that is not connected to the local power grid and if you do not have a backup generator.

Electricity Access With On-grid Solar

If you choose to go with a solar power system that is connected to the local power grid, you will constantly have access to energy (unless there is a problem with the grid itself), regardless of whether or not your solar power system is producing any or if you have any batteries.

In the event that your system does not produce any electricity or does not produce enough electricity to run the gadgets, lights, machines, etc. that you are using, you have the option of drawing energy from the utility grid in order to augment it. This guarantees that you will never run out of electricity to power whatever it is that you require.

Excess Production With Off-grid Solar

There may likely be moments when your system is generating additional electricity than you are using. This is something that will depend on the size of the system that you install, the amount of electricity that you consume, and the times of day that you use that electricity. The equipment that you install will determine what happens to the excess energy that is produced.

The vast majority of standalone solar power plants are engineered to generate a certain amount of “excess” electricity during the day, which is then stored in batteries for use at night. When the system is not producing any energy, such as at night or when there is cloudy weather, the energy that is stored in the batteries can be retrieved and used.

Systems can be designed to produce sufficient excess electricity during the day to cover your whole energy use over the entire 24 hour period, depending on the energy goals that you have set for yourself.

However, even with the greatest and most precise forecasts, it is impossible to predict the weather with complete certainty. If you have multiple days in a succession of unusually overcast weather, your system may not be able to produce enough electricity to charge the batteries and satisfy all of your requirements.

Even though having extra batteries can provide a bank of stored electricity and peace of mind in the event that something like this occurs, the batteries themselves are quite pricey. Depending on the size of your spending limit, it may not make financial sense to buy more batteries than you actually require.

Excess Production With On-grid Solar

Many people who choose to install an on-grid solar system have the same goal as those who install an off-grid solar system, which is to cover either one hundred percent or almost one hundred percent of their total energy use. This is also possible with systems that are connected to the grid.

Your solar power system could generate more energy than you need at certain times of the day, depending on when you use the most electricity. You are able to transfer it to the grid, and you will be rewarded for that electricity. This is an alternative to sending it to batteries, which is what you would do in an off-grid setup.

Power Outages With Off-grid System

Your solar power system is functioning independently from the public power supply at this time. Your solar energy system will continue to function even if there is a severe storm or another incident that knocks out the power. There will be no discernible changes to the quality of your service or your access to the electrical grid.

Power Outages With On-grid Systems

When you connect your home or business to the grid, you ensure that you always have access to the electricity you require. Having said that, you are also bound by a few regulations. If you have a solar system that is connected to the grid and the grid suddenly goes down, you will not have any electricity unless you choose to install a grid-connected solar system that also includes a battery backup.

Why is this the case? Underwriters Laboratories mandates that solar power generation equipment must be turned off in the event of a power outage (UL 1741). Utility workers who are doing repairs to the electrical wires will appreciate your attention to this matter.

In spite of the fact that this is a drawback of grid-tied systems in comparison to off-grid systems, you may be interested in adding batteries to your grid-tied system if maintaining operation of your devices and appliances in the event of a power outage is something that is essential to you.

Electricity Bills With an Off-grid System

If your photovoltaic system is not connected to the grid, you will not be responsible for paying any sort of power bill. However, despite the fact that there is no monthly electric payment, off-grid systems are typically more expensive than grid-connected ones since they require additional hardware, such as batteries, in order to be functional.

Electricity Bills With An On-grid System

Even if your solar panel array generates all of the electricity you need on its own, if you choose to have it connected to the public power grid, there is a possibility that a few insignificant additional fees will be added to your monthly electricity bill.

There is a possibility that you will continue to notice service fees or delivery fees as one of the types of charges. Customers are responsible for paying this fee in order to have their homes or businesses connected to the grid. This fee, which applies to many different utilities, is typically a flat rate that does not change regardless of how much electricity you consume.

Demand costs are an additional category of fees that may be applicable. Demand charges are an increased rate that you pay for the electricity you use during a period of peak demand. These charges are typically levied on commercial properties because they represent an increased cost. The period of time, usually fifteen minutes long, during which your company uses the most electricity is referred to as the peak demand period.

Because using a significant quantity of electricity all at once places a strain on the power grid, the utility company will charge a higher rate for the electricity that is consumed during the time period that the strain is being placed on the system.

If your peak demand time occurs during the day, installing solar panels may allow you to reduce that time of day’s demand. This is because the energy produced by your system will offset some of the energy you draw from the grid. If you have very high demand charges, you might want to consider peak demand shaving with solar and batteries as an additional option.