It’s a good time for solar in America: The costs are decreasing, while awareness of the benefits of solar electricity is on the rise.
There was a 30% year-over-year increase in residential solar between 2021 and 2022, and today there is enough solar capacity in the US to power 22 million American homes.
Most of those homes likely use grid-tied solar systems, but there are other options. Before you get started with solar, learn the differences between grid-tied vs. off-grid solar systems so you can determine which one is right for you.
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What is a grid-tied solar system?
Grid-tied or on-grid solar systems are the most common option. They don’t use batteries and are instead connected to the utility company in a given area. If your system produces excess electricity, it’s sold back to the grid, and you get a credit on your electricity bill. The credit can either be used to pay for electricity when you need it or will be cashed out at the end of your billing cycle if you don’t use it. This is called net metering or solar buyback.
Pros of grid-tied solar systems
The biggest benefit of an on-grid solar system is that you don’t have to rely solely on your own solar generation to power your home. If it falls short, for example on a cloudy day or a high-usage day, the public grid can provide you with power.
Grid-tied solar systems are also often more economical to set up because they don’t need batteries, which can be an expensive upfront cost. You may also find this type of system is more affordable over time because of available rebates and solar tax credits. Make sure you also shop electricity plans to see if your provider offers any green residential plans.
Cons of grid-tied solar systems
The biggest drawback of an on-grid solar system is also related to the fact that it’s connected to the power grid: If the grid loses power, so do you. If you live in an area with unreliable power, this can be a huge hassle.
Because they use public utilities, grid-tied solar systems also come with certain fees and charges. You may see a service fee or delivery fee on your bill for connecting your home to the grid. You might also see demand charges, which is when the utility companies raise the prices of electricity during peak demand times. However, solar often reduces these types of charges. And despite these fees, grid-tied solar is still considered the most economical option.
What is an off-grid solar system?
Off-grid solar systems are not connected to your public utility grid. If you don’t sell the excess energy back to your utility company, what happens to excess solar power generated off-grid?
This type of system is usually designed to produce excess energy during sunny periods so that it can transfer the energy to battery storage. You can also use a backup generator to charge your batteries, if needed. The batteries can then be used for future electricity needs, like providing power at night or on cloudy days.
Pros of off-grid solar systems
The biggest advantage of off-grid solar is that you won’t lose power if your grid goes down. Your system will simply switch to battery power or use the backup generator.
Many people are attracted to off-grid solar because they don’t want to pay utility bills anymore, so another advantage may be energy independence. Off-grid solar takes a bit more planning to be sure you cover your needs, but it is a good option in areas that don’t have reliable power.
Cons of off-grid solar systems
The upfront off-grid solar system cost is the biggest drawback to this type of system. Many owners take the time to learn how solar panels work, which leaves them wondering how many off-grid solar panels they need, but that isn’t the only question.
You will also need to determine how many off-grid solar batteries you need. An average home uses at least 7 kW of electricity per day, meaning you would need about six solar panels and three batteries to keep your system running around the clock. However, what you will need for an off-grid solar system depends on your home, your usage, and your local climate.
Unlike grid-tied solar systems, going off-grid also means that if you don’t estimate your usage correctly, or you occasionally use too much power, you may be stuck without electricity. You’ll also need to learn basic troubleshooting for off-grid solar, so you don’t need to call someone out to your property every time you have an issue.
What about hybrid energy solar systems?
A hybrid setup is a grid-tied solar system that uses a battery backup. Any excess electricity created first goes to the battery, and some systems can even charge their batteries using energy from the grid during off-peak hours.
This type of system eliminates the biggest drawback of on-grid solar: the lack of power if the grid goes offline. However, you will need to invest in at least one off-grid solar battery, and likely more, to store your energy, which can cut into your upfront cost savings. Still, this type of system is becoming increasingly popular as the cost of solar batteries decreases.
Determining which type of solar is right for you
Making the switch to solar energy will save you money over the long term, but it can feel like a big investment at first—especially if you choose off-grid solar. Due to the upfront off-grid solar system cost and the inability to completely ensure you will have electricity, this option is usually only recommended for homeowners who don’t have access to power lines. In that case, off-grid solar systems are often cheaper than running power lines to your location.
The truth is that grid-tied solar systems or hybrid options are right for most homeowners. They are more economical and can ensure that you always have the power you need. With a provider like Gexa Energy, you may be able to save even more money through special plans. Learn more about Gexa Energy and how our solar plans can help you make the decision between grid-tied and off-grid solar systems.
