Off-Grid vs On-Grid Solar Power Systems

Solar panel systems provide a wealth of benefits for those who want to save money and go green. These systems provide reliable energy collected from the sun and even electrical credits for selling excess power back to the grid.

Solar panel systems can be set up in an on-grid formation or off-grid formation. Here, we’ll discuss the benefits, disadvantages, and differences between on-grid solar and off-grid solar.

What is On-Grid Solar?

An on-grid solar panel system is the most common type of system on the market today. These systems tie in directly with the local power grid. Solar panels are connected to the electrical system of the home or business and the energy collected is delivered to the property. If the panels don’t receive enough power, the home receives additional power from the local grid. If the panels take in more power than is needed, it is fed back into the local grid. In many places, a process called “net metering” provides solar panel owners with credit for this excess power.

On-grid solar has become very popular since solar panel systems have risen in popularity in the past 10 to 20 years. These systems often provide energy savings and a substantial reduction of a property owner’s carbon footprint. They also allow property owners to have reliable access to power, even on cloudy days.

What is Off-Grid Solar?

An off-grid solar panel system is completely independent of the local electrical grid. A series of solar panels are linked to the property’s electrical system and not connected in any way to the local electric company’s system. These setups include a large battery to hold excess power so a property owner can have available energy when the panels aren’t taking in power. Off-grid solar allows a home or business owner to be completely independent of the electrical system and be self-reliant for their own electrical needs.

Off-grid systems are less common for several reasons. Off-grid systems require a battery to store excess power which can add a lot of cost to the overall setup. If the battery runs out and the sun isn’t out, an off-grid system will leave a property owner without access to any electricity at all.

Hybrid Solar Panel Systems

A third option for solar systems includes a hybrid setup. These systems provide the best of both worlds. Hybrid systems collect power from the sun and power up the entire home. Excess power is first delivered to small battery backups and excess beyond the battery capacity is sent back to the local grid for net metering credits. Hybrid setups offer the off-grid advantage of a local battery backup as well as the on-grid advantage of net metering and extra power when needed.

Which is Right For Me?

When it comes to choosing between an on-grid or off-grid solar panel system, a few different factors need to be considered:

Excess Electricity

Solar panel systems will collect energy as long as the sun shines on the panels. If the property doesn’t need the additional power, the electricity needs to go somewhere.

An on-grid system will deliver that excess electricity to the local power grid and most areas provide financial credits as the electric company is “buying” this power from the property owner. An off-grid system will deliver this power to a backup battery for storage and to use later on.

Electrical Costs

The cost of electricity and the desire for long-term savings are major motivators for those who choose to go solar.

An on-grid system offers great savings due to the collection of “free” power from the sun and net metering credits when excess power is sold back to the grid. An off-grid system comes with the added cost of a backup battery storage unit and does not provide net metering credits as there’s no way to sell excess power to the grid.

Local and State Laws

The laws and regulations regarding electrical systems vary from state to state and even city to city. These laws can change over time as solar power becomes increasingly popular and adoption continues to rise.

On-grid solar panel systems are allowed everywhere, but some jurisdictions may not allow for a completely off-grid system. It’s important to ensure that you understand the rules and regulations in your area before choosing a system. A professional solar panel installer will be able to verify the rules in your local area.

Power Outages

No matter the type of solar panel system you have at your home or business, power outages still occur throughout the country.

An off-grid system will be independent of the local power grid, so a power outage won’t affect anything. As long as the panels continue collecting power or the battery has energy, an off-grid property will have power during an outage.

An on-grid system will go out if there is a power outage unless the property owner opts for a grid-tied system with battery backup. Solar systems are required to be shut down when the power goes out for safety reasons. However, the electric company may have battery backups that are available for those who opt into the service.

Still Not Sure?

Still curious about your solar panel system options? The team at BD Electrical & Solar can help. We install top-quality solar panels for on-grid and off-grid systems. Give us a call today to learn more about how we can help you choose the right system for your needs!