On-Grid vs Hybrid vs Off-Grid

With more and more people transitioning to clean energy and solar shifting into top gear, various solar systems with different forms and configurations have made their way to the market. However, all solar systems – no matter their shape or size – can be categorized into three types: on-grid, off-grid, and hybrid.

Every type of solar panel system has a unique set of functionality that determines its setup equipment, how difficult or easy it is to install it, and, most importantly, the effect the installation and maintenance will have on your pocket. 

Are you looking for a solar panel system to buy but are not sure where to start? Do not worry. To help you choose a system that allows you to incentivize solar energy to its maximum, we have penned down this article. Join us as we dive into the benefits and uses of different types of solar systems.

On-Grid Solar System

On-grid, grid-tied, and grid back feeding are different names used for the same type of solar system – one that is connected to the electricity grid,On-grid is the most common and widely used solar system for residential and commercial uses. Unlike off-grid solar systems, on-grid solar systems do not use a battery bank.

Instead, the electricity generated by the solar panels is used to power the home loads, and the excess energy is sold to electric supply companies through the grid in return for electric bill credits. 

Components of on-grid solar systems – Panels, meters, grid-tied inverters, and a utility grid

Ideal for – residential, commercial, and industrial properties with utility grid availability

Benefits of On-grid Solar System

An on-grid connection will allow you to shrink expenditures and save more money by incentivizing solar power. Through net metering, lower installation/maintenance costs, and better efficiency rates, on-grid solar systems provide the opportunity for a faster return on investment. 

• Save More Money with Net Metering

If designed properly, on-grid systems help reduce electricity bills by more than 90% through net metering. Solar panels often generate more electricity than your house is capable of consuming. Through net metering, homeowners can sell that surplus electricity to utility companies instead of storing it themselves with batteries.

Most companies are committed to buying electricity from homeowners at the same rate as they sell it. Those bill credits are used to cancel out electricity usage charges, helping lower electricity overheads.

• Cut Down Installation and Maintenance Costs

On-grid connections cost less than other solar systems since they do not require a battery to function. Due to the absence of a battery, on-grid solar systems are cheaper and simpler to install. Moreover, since there is no battery that has to be repaired or replaced, maintenance costs are also cut down.

Another perk of installing an on-grid solar system is that it provides access to backup power from the utility grid. If your solar system stops producing electricity for some reason or is not producing enough electricity to service your home loads, you can pull energy from the utility grid.

This perk ensures that you have enough electricity to power your loads while also mitigating the power company’s peak load, increasing the overall efficiency of your electrical system.

Off-Grid Solar System

Off-grid solar systems, also known as standalone systems, are the exact opposite of on-grid systems. They are not connected to the utility grid, so you have to rely on solar panels alone to power all your loads all the time. Since the option of importing power from the utility grid is unavailable, off-grid solar systems require high-capacity battery storage and a backup generator to store energy.

Components of off-grid systems – Solar charge controller, battery bank, DC disconnect, off-grid inverter, and a backup generator

Best suited for – Rural and remote areas, agricultural lands, industrial properties, and construction sites.

Benefits of Off-grid Solar System

When engineered and designed seamlessly, off-grid solar systems can generate and store enough electricity to single-handedly meet all your power needs. Independent of the utility grid, these systems provide a high return on investment while offering peace of mind by being self-sufficient.

• Can Be Installed in Remote Areas

Off-grid solar systems are best suited for remote areas where extending the power lines is difficult and costly. Since they do not require a connection to a utility grid to function, off-grid systems can be installed where there is no access to the utility grid.

With the costs of overhead transmission lines ranging from $174,000 per mile (for rural construction) to $11,000,000 per mile (for urban construction), installing off-grid solar systems is much cheaper than extending power lines. If you are located more than 100 meters from the grid, consider installing an off-grid system to reduce expenditures.

• Upholds Energy Demands

An off-grid system is composed of batteries that are complicated and expensive to install and maintain. Due to the high cost of batteries, off-grid systems are more costly than on-grid systems. However, when successfully installed, they can uphold energy demands in peak times.

Moreover, a well-assembled off-grid system remains unaffected by the changing weather patterns and power outages on the utility grid. So, while the upfront cost of an off-grid system is higher than on-grid systems, the sense of security it brings with being energy self-sufficient is worth it. 

Hybrid Solar System

A hybrid solar system brings together the functionalities of on-grid and off-grid solar systems, allowing consumers to have the best of both worlds. It is tied to the grid but also comprises a storage unit to store surplus electricity.

A hybrid solar system can be described as an off-grid solar backed by a utility grid or on-grid solar with battery storage.

In a hybrid solar system, the power generated from the solar panels takes three routes. First, the generated power is used to service the building’s loads. After energy consumption by appliances, the extra solar power is transferred to the battery bank to charge the solar battery.

Once the batteries are completely charged, any surplus solar energy left is exported to the utility grid in exchange for bill credits.  

Components of hybrid systems – Charge controller, battery bank, DC disconnect, battery-based on-grid inverter, power meter, and a utility grid.

Best suited for – Agricultural sector, residential applications, micro-grids, rural areas, and offices.

Benefits of Hybrid Solar Systems

Here is how hybrid systems have become the secure, cost-effective, and future-ready option for solar setups at home:

• Cost-effective and Secure

Hybrid solar systems offer more steady, secure, and cost-effective power generation than on-grid and off-grid systems. Blackouts or weather changes do not affect its yield or supply.

They allow you to maximize the consumption of the power generated from the panels while minimizing the expenditure. 

Since a hybrid solar system is tied to the grid, you do not need to invest in large storage systems to ensure access to electricity at all times.

If the battery runs out of charge, you can just take off-peak electricity from the power grid, which is much cheaper than operating a generator. 

Simultaneously, due to the availability of battery storage, you will use less grid electricity than you would with an on-grid system. Moreover, you can employ a power management system to optimize your power usage.

These technologies switch on larger appliances, such as a dishwasher or electric vehicle, during peak daylight hours only, resulting in more significant utility savings and a quicker ROI.

• Expandable and Future-Ready

Modern hybrid solar systems are now available in various forms and configurations, including customizable ones. For instance, a custom hybrid system allows you to expand its capacity by adding more panels or batteries. 

As hybrid systems become more compatible with newer solar technologies, more opportunities for innovation are arising.

For example, an EV (electric vehicle) can now be used as one of the batteries in a hybrid setup, allowing you to utilize the power generated by solar panels to its maximum. 

Partner with DSG Energy

You need to take into consideration a lot of factors when investing in equipment that will last your many years. While it is helpful to do your homework about the basics of solar systems, you might still need expert advice to make the right choice.

DSG Energy is here to provide guidance on every detail to help you make a smart decision. 

DSG Energy provides end-to-end energy solutions that encompass all residential and commercial energy needs. State-of-the-art combinations of solar kits combined with the seamless and reliable installation of ready-to-use systems allow our customers to enjoy a maximum solar harvest.