An on-grid solar system starts with the installation of solar panels on a residential or commercial rooftop or a ground-mounted structure. These solar panels are designed to capture sunlight and convert it into direct current (DC) electricity through the photovoltaic effect.
The DC electricity generated by the solar panels is then passed to an inverter. The inverter's primary function is to convert the DC electricity into alternating current (AC) electricity, which is the standard form of electricity used in homes and businesses.
Unlike off-grid systems, on-grid systems are connected to the local electrical grid. This means that they work in tandem with the conventional electricity supply provided by the utility company. When the solar system generates more electricity than is currently being used on-site, the excess electricity is sent back to the grid.
On-grid systems often employ a net metering arrangement. A bidirectional utility meter keeps track of the electricity consumption and the surplus electricity sent back to the grid. When the solar system generates more power than the site's immediate needs, the excess power is fed into the grid, and the meter records this surplus. In return, the customer usually receives credits on their utility bill for the excess power they contribute.
On-grid solar systems ensure a reliable power supply. If the solar system is not generating sufficient power, the grid seamlessly provides the additional electricity needed. Likewise, during periods of excess generation, the surplus power can be utilized by other grid-connected consumers, promoting energy sharing and efficiency.
On-grid solar systems are often more cost-effective than off-grid systems because they don't require expensive energy storage solutions like batteries. They allow consumers to save on their electricity bills and, in some cases, even earn money by selling excess power back to the grid.