On-Grid and Off-Grid Systems: What Are They?

More and more homeowners are switching to solar panels every day. The solar market grew by 80% in the United States within the last five years, according to the organization Energy Informative. Homeowners love solar panels because they save thousands of dollars each year while helping the environment. Additionally, solar panels increase a home’s value. 

If your home is currently benefiting from a solar panel system, then you’ve probably heard of on-grid and off-grid systems. Do you know what the functions of an on-grid and off-grid system are? Learn the differences between both systems so you can save as much money as possible. Keep on reading to find out which system benefits you the most. 

On-Grid Systems

An on-grid system is a solar photovoltaic system that only generates energy when the utility power grid is available. An on-grid system must be able to connect to the grid to function, and it comes with several benefits. One of the main advantages of on-grid systems is that they’re simple to understand and use, and they’re also the most cost-effective system to install. These systems practically pay for themselves by offsetting the costs of your utility bills after a few years. 

Your solar power system will link to your local utility company when you stay on-grid. If your solar power system can’t produce enough electricity one day, then your utility company serves as a backup. You won’t have to worry about purchasing a backup battery for your system when you’re on-grid. 

The best part about an on-grid system is that if your system produces more electricity than you need, then you can send the extra energy you don’t use back to your utility company. In exchange for sending your excess energy back, the utility company will allow you to build credit that can be cashed out at the end of the year; this is called net metering. Net metering allows customers to export extra power back to the grid, further reducing their electricity bill. According to the Solar Energy Industries Association, most customers produce more energy than they need each day. You’re guaranteed to receive a big check at the end of every year by staying on-grid. 

Off-Grid Systems

An off-grid system allows you to store your solar power in batteries, which you can use when a power grid goes down. To achieve complete sustainability with an off-grid system, you’ll need multiple solar panels and a battery backup system, so you’ll have to spend thousands of dollars on equipment alone. For an off-grid system to work, your batteries must be capable of storing a great amount of electromotive force that can only be generated from your solar panels. 

To truly go off-grid, you’ll have to cut ties with your utility company, making you ineligible for net metering. You also wouldn’t be able to purchase electricity during periods of low sunlight. Moreover, off-grid systems are more challenging to install than on-grid systems, so you’ll need the help of a technician if you choose to go off the grid. Although most homeowners stick to on-grid systems, they are excellent for major industrial, government, and medical facilities because they’re more heavy-duty than on-grid systems. 

Rocky Mountain Renewable Energy is a full-service solar power provider that can provide your home or business with on-grid or off-grid solutions. Contact us today to learn more. 

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