When choosing a system, one of the major decisions you’ll need to make relates to whether you want a grid-tied, off-grid, or hybrid solar system.

These three types of solar systems all offer different levels of flexibility and energy independence, but which one works best for you depends on several factors.

We’ll look at how grid-tied solar systems differ from off-grid and hybrid systems, along with some of the key benefits to help you know which type is best for your home or business.  

What is a grid-tied solar system?

A grid-tied solar system is, as the name suggests, a solar energy system that is connected to the main electricity grid. They can operate without being connected to a solar battery, making them the most simple, cost-effective, and popular type of solar system. The primary function of an on-grid solar system is to generate electricity from solar panels and feed it directly into the grid. This electricity is then utilised by a homeowner or business, offsetting a reliance on utility-supplied power. Perhaps the power you receive in your home from your electricity supplier comes from a renewable source like solar. You may use a hybrid of private solar panels and grid-supplied power.

How does a grid-tied system work?

Grid-tied solar systems are the simplest type of solar system, with different equipment and layout required compared with off-grid and hybrid solar systems. The basic premise of a grid-tied system is to connect a building to both the main electricity grid and a solar array, so power from either or both can be used.

As there is no energy storage equipment in a grid-tied system, any power generated by the solar panels that is not used immediately is automatically fed into the main grid. When energy generation from the panels is insufficient to match energy usage, the system automatically draws power from the main grid to make up the shortfall. One significant advantage of on-grid solar systems is the ability to take advantage of net metering. Excess electricity generated using your own privately owned PV array during the day can be fed back into the grid, earning credit that can be used to offset electricity consumption during periods of low solar production. This allows you to reduce electricity bills and even make revenue.

What makes them different to other solar systems?

The main types of solar systems to choose from are grid-tied, off-grid, and hybrid. A grid-tied system is, as we’ve covered above, linked to both the solar panels and the main grid. This means that you can draw power from either the panels or the grid, and also automatically feed excess solar power into the grid. As such, different equipment is used to that used in off-grid systems.

Off-grid systems differ in that they are not linked to the main electricity grid. Instead, they operate as a closed system, making them ideal for areas that do not have grid access. To ensure reliable access to power, off-grid systems will generally also include a battery system and a backup generator. Off-grid solar systems, or standalone or independent systems, operate independently of the grid. These systems are typically found in remote areas with limited or nonexistent grid access.

Off-grid solar panel systems are self-sustained, relying on solar panels, batteries, charge controllers, and inverters. The kit generates, stores, and distributes electricity. Store excess energy in batteries for use during times of low solar production, such as at night or during cloudy days.

Hybrid solar systems combine some of the elements of the other two systems, making them an attractive option for those looking for flexibility. Hybrid systems include solar panels, batteries, and a grid connection, as well as a generator in some cases. This means users can dynamically switch between energy sources depending on price, energy production, and energy usage.

A hybrid system is mainly composed of a grid connection, solar panels, a hybrid inverter, batteries, and a generator in some cases. 

Advantages of a grid-tied solar system

Grid-tied solar systems have several key advantages that contribute to them being the most popular type of solar setup. These advantages include:

Cost-effective installation
As the simplest type of solar setup, grid-tied solar systems require less equipment, mainly due to the fact that they are the only type of solar system that doesn’t require a battery. This makes them more straightforward to install than other options, such as off-grid or hybrid systems. This simplicity generally translates to savings for the customer, making grid-tied solar the most accessible form of solar power for most people.

Flexible, reliable power
Having your energy supply linked to both solar panels and the main grid offers all the major benefits of solar (such as cheaper power and a lower carbon footprint), but still gives you the reliability of the grid.

Cheaper electricity
Arguably the greatest benefit of a grid-tied system over an off-grid system is the ability to feed excess electricity into the grid. This process earns you credit from your energy provider, which can reduce the cost of your energy bill significantly.

Equipment required for a grid-tied system

As grid-tied systems are connected to both a solar panel array and the main grid, they require some specialized equipment. For example, grid-tied systems need a grid-tied inverter (GTI) (such as a suitable central inverter, string inverter or microinverter). These inverters convert the direct current (DC) from your solar panels to alternating current (AC) to feed into the grid and to power appliances.

Microinverters can also be used in a grid-tied system, and can make your solar setup more efficient when compared with standard grid-tied inverters.

Another key piece of equipment is a two-way power meter. A power meter measures the electricity going from your system into the grid, and from the grid into your system.