Grid-Tied Solar PV Systems

4 min readNov 11, 2023

When going solar, choosing the right system for your location and power usage is the most important decision. First, we should understand what are the three types of solar PV systems and how they work: grid-tie, off-grid, and grid-tie with battery backup.

What are the Different Types of Solar Systems?

So you’re ready to switch to solar power, but you’re not sure what kind of system to get. There are three main types of solar power systems to meet every need. Let’s look at the different types.

Grid Tied

The grid-tied systems are also known as grid-connected or On-grid solar systems. Anybody connected to the local power grid is eligible to set up a grid-tied system. They are the most popular type of solar setup in the World.

These systems supply the generated solar power directly into the local power grid and let you sell the excess energy that your system generates to offset your energy costs.

What is meant by the Power Grid?

The electrical power grid is the network in which the power is generated, transmitted, and distributed to consumers. The electric grid comprises three main components: power generation, transmission or distribution, and consumption.

All the transmission lines, street lights, households, and any other building with electrical power have been connected to this power grid.

Before the invention of the modern grid, electricity producers each developed their own distribution systems for delivering electricity to customers. This system was costly due to underused infrastructure and wasted electricity.

The modern power grid was invented to allow various producers to share infrastructure for production and distribution. This turns the electrical grid into an intelligent network that allows more efficient incorporation of small-scale electricity generation sources like solar power plants.

Therefore Not only large-scale power plants but also small-scale power producers like small solar PV plants can supply energy to the grid. It increases reliability and lowers the costs of power generation.

Why Grid-Tied Solar Systems?

The most popular option for homeowners who are linked to the power grid is a grid-tied system. This will be the best option if your main objective is to save money and make a wise investment.

A properly designed and sized solar system can make your monthly electricity bill zero.

How Do Grid-Tied Solar Systems Work?

There are three main components in an on-grid system.

The solar panels
Bi-directional net meter
On-grid Inverter.

To understand how a grid-connected solar system works, let’s see it in action as it powers a typical house for a day.

Let’s begin at night. At this point, relatively little power is being used. The fridge, some phone chargers and maybe the heating or cooling. There is no solar power right now, so electricity usage is met by the power imported from the grid.

In the morning, energy use spikes as the family prepares for the day. They use kitchen appliances, hair dryers, hot water, heating, and other devices. Part of their energy needs will be met with solar. But as the sun isn’t very strong yet, the home will continue to import the deficit energy from the grid.

At midday, the sun is much stronger, and the solar system reaches its maximum output. At this time, electricity usage is also at its lowest, as everyone’s out for work or school. That means lots of surplus power is produced in an on-grid system. That surplus is exported to the grid.

But assume a hot day with the air conditioners switched on. Then, a large amount of energy will be consumed by the house. During the sunlight, the solar panels on this house produce enough energy to power the air conditioner without the need to import electricity from the grid.

But when dark clouds appear in the sky, the solar panels don’t produce enough energy to meet the needs of the house. Then, the utility grid compensates for this shortfall. The solar panels and the grid are now jointly feeding the house.

In the afternoon, the sun moves downwards through the sky, causing the solar output to drop. However, power usage is still low, as most of the family is not home yet. The system continues to export power.

In the evening, the sun setting means there’s no more solar. Energy usage now peaks as the family returns home and runs lights, entertainment devices, and kitchen appliances.

Now, again the energy flow direction changes. The home stops exporting and starts importing power instead. It’s night again, marking the end of the daily energy cycle.

The consumer will get a bill at the end of a billing cycle. The total bill amount is the amount of imported electricity reduced by the amount of exported electricity.

The on-grid system imports energy from the grid, but this gets offset by the high energy exports achieved by the system during midday and afternoon. In fact, a properly designed on-grid solar system can achieve a 100% offset of a home’s power requirements, which means electricity bills with zero net usage charges.

When the utility grid fails, grid-connected systems will not operate, even on solar power. This allows utility employees to fix the transmission line safely without worrying about solar power systems that can feed electricity into the power grid. That’s how a grid-tied system with net metering works.

Approximated cost for Grid-Tied Systems

Grid-tied systems are the cheapest solar solution and offer the fastest payback and best return on investment. They are ideal for anyone trying to save money on their power costs.