On-grid vs Off-Grid

On-grid vs Off-Grid

Starting the Solar Journey

One of the first questions any potential solar home user should ask is;

“Should I stay on the grid, or go off-grid?”

No doubt, it’s a great question with many different factors that can influence your decision. Money saved, money earned, freedom, reliability, safety, ease-of-use.

Going solar can be complicated, but if you read on we will keep it very straightforward for you to make the best decision for you and your family.

Let’s define both options.

Grid-Connected. This is when your home has installed solar photovoltaic (PV) panels as a supplementary way to generate extra energy that detracts from your current utility bill. This extra electricity can save hundreds of dollars, and can even be sold back to the power company, effectively “running the meter backward”.

Off-the-Grid. It’s all on you baby. Off-grid is when your home’s PV panels are the sole way for your home to receive electricity. Excess energy is stored in batteries, which then are used to power your home at night. No reliance on anyone else, you have your very own system.

The key difference in on-grid vs off-grid for alternate energy depends on if you are connected to the electric company, or are on your own. With on-grid, you have the potential to sell electricity back. Off-grid offers more freedom, but also less security if something goes wrong.

However, not every person’s situation is the same.

Both choices have excellent pros and cons. Like with anything, it’s usually best to read each condition thoroughly and then go with your gut.

 Comparing each system

Off-grid prosOff-Grid consGrid ProsGrid Cons
-No electric bill at all
-As much electricity as you can store
-Expensive batteries
-More risk if something fails
-Cheaper to install
-Less hassle
-Has grid backup
-Sell electricity back to the power company
-Some reliance on the electric company
-Some potential electric bills

At present, the most popular option is a connection to the grid. There’s less risk involved and many folks don’t want to deal with the battery system.

This is especially true in residential neighborhoods where almost every house is already tied into the grid and the homeowner just wants to add a few solar panels. 

Off-Grid can be expensive to set up, mostly because of batteries so that at night when the sun isn’t shining, you still have power. Grid-connected systems don’t have this issue, as when electricity is needed at night they can simply draw from the grid.

Many folks still want the reassurance of being connected to the city, especially at night. This does mean you are still at risk for a city-wide power outage and you may have to pay for service charges to your system whenever they occur.

Off-grid especially still has a long way to go because the battery technology is still advancing. For example, Tesla has a full-sized home battery. This tech can store all of your excess solar, draw from the grid, and tie it all together. However, it can also run you back $7,600 just for the battery alone, not including installation fees.

How each system ties in

The main contingency when you harness solar power is this electricity is in direct current form (DC) while the electricity from outlets in your house is alternating current (AC).

This is where inverters come in. All you need to know is that inverters convert direct current into alternating current. DC power is found in batteries and is what comes off initially from any solar, wind, or hydro system. However, your home kitchen blender runs off of AC, and hence this DC from your solar panel needs conversion.

If you have solar energy powering your home, you have an inverter. Off-grid or on, your house needs the alternating current. One of the differences is that for your off-grid setup, a good amount of electricity flows straight from your system into a battery.

As discussed above, batteries store DC. It’s kind of like a caged lightning bolt. This power can be stored as long as you need it and in this scenario, nighttime is when you’ll need it when the sun isn’t shining.

Stay tuned for inverter and battery reviews!

Building a New Home

One more important consideration. If you’re building a new house in the middle of nowhere, it can be less expensive to install your own electricity system rather than have the power company dig out to your place. This can not only save money upfront but also in the long run as you will never have to pay an electric bill ever again.

Again, on-grid vs off-grid mainly affects existing homeowners looking to add PV to their house. New homeowners definitely should look into more off-grid solutions.

Thanks for reading! Any questions, comments, or concerns don’t hesitate to ask!

Don’t forget to Subscribe to our email list! We send out articles just like this repeatedly!

Click here to read more articles just like this.