On Grid Solar System

An on-grid or grid-tied solar system is a system that works along with the grid. This means that any excess or deficiency of power can be fed to the grid through net metering. Many residential users are opting for an On-grid solar system as they get a chance to enjoy credit for the excess power their system produces and save on their electricity bills. You will always have power either from the solar system or from the grid. They do not have batteries.

Product Market Size & industry

The solar market in India is very attractive and the country is expecting investment worth $500 billion in renewable energy by 2028. India has a target to reach 227 GM of renewable energy by 2022 of which about 114 GW is planned for solar, 67 GW for wind, and balance for hydro and bio among others. The country’s installed renewable energy capacity stood at 94.43 GW as of February 2021. It is expected that by 2040, around 49% of the total electricity will be generated by renewable energy. In addition, the Government of India wants to develop a green city in every Indian state, powered by renewable energy.

In order to achieve the above target, the Indian Government has launched several schemes to encourage solar power generation in the country like Solar Park Scheme, VGF Schemes, CPSU Scheme, Defence Scheme, Canal bank & Canal top Scheme, Bundling Scheme, Grid Connected Solar Rooftop Scheme, etc. Many policy measures are also undertaken to promote the on-grid solar power plants.

How It Works?

This system works in two-ways - the supply of electricity can flow from the grid to which it is connected to the user’s home and from the user’s home to the grid. This feature makes the on-grid solar system affordable and highly useful. The solar panels, installed on the user’s home are ‘tied’ to the grid. The solar panels convert sunlight into electric energy, which is Direct Current (DC). This current is then sent to an inverter. The solar inverter then converts the DC to Alternating Current (AC), thus making it power the electrical items. This electricity is then routed to the grid where it is supplied for day to day use.

The grid tied inverter additionally regulates the amount and voltage of electricity fed to the household since all the power generated is mostly much more than a home needs or can handle. An important feature is the net meter. It is a device that records the energy supplied to the grid and the energy consumed. At the end of each month, the outstanding is recorded and the consumer is provided with a bill. This ‘converted’ power supply is then used by homes through the main electricity distribution panel.

Benefits

Guaranteed 24*7 power supply - With an option to use either solar power or the main power grid, the consumer will always have access to power and will never suffer from a power outage.

Opportunity to earn more - With the help of a net meter installed at your home, you can track the number of units you sent to the power grid and claim a credit for that in your home electricity bill. This forms a lucrative option for the consumers who think of it as an extra opportunity to make money. Almost all the states in the USA and even India have mandated Net Metering.

More Savings - The main purpose of installing an on-grid solar system is to reduce your electricity bills. You can adjust the usage depending upon peak demand hours and hence end up paying no peak demand charges. These are the higher rate of charge that the utility charges for using the grid during high-demand hours. Also, you end up paying less on electricity bills and earn more through Net Metering.

Good Investment Returns - An on-grid solar system offers a good investment option. It has 5 years as payback time and provides free electricity for the next two decades. You can convert your own property into a revenue-generating avenue by investing in solar and achieving ROI in just 4-5 years.

Works efficiently - The on-grid system works in sync with the grid. There is no limitation in the grid-tied system, you can run any home appliance on the grid-tied solar system. Also, it utilizes 100% of solar power produced from solar panels. For example, a 1 kW on-grid system can run 5 kW power.

Easy to install - Installation of an on-grid system is easy and can be done easily by oneself on the rooftop. It can be easily installed on residential rooftops, rooftops of commercial complexes, housing societies, community centres, government organizations, private institutions, etc.

Less Costly - Since an on-grid solar system does not require batteries, it is cheaper to install when compared to an off-grid system. It is less costly when compared to other solar systems.

Less Maintenance - An on-grid solar system involves less maintenance and generally has a longer life when compared to an off-grid system.

Subsidies and Other Incentives - A user can avail of government subsidies and other incentives to install on-grid solar systems.

Drawbacks

Does not come with backup, the system does not work when there is a power cut.

Off Grid Solar System

An off-grid solar system is more popular and comes with a power backup. It works independently of the grid. Most home appliances such as Fans, TV, Cooler, AC, Water Pump, etc. can work through this system. For instance, a 1 kW off-grid solar system is sufficient for a 2-4 BHK house. But if you also want to run 1HP Water Pump in your home you could use a 3 kW off-grid solar system. If you are planning to run an AC then you should use a 5 kW solar system. For commercial setups like a shop, clinic or small mill, petrol pump a 10 kW off-grid solar system should be used.

It is the most common type of solar power system with backup. It works in day and night both, during the day, solar panel charges the battery and runs the home appliances such as Air Conditioners, Cooler, Television and submersible pump. At night, when the sun is not available, Inverter runs your home appliances using the battery power.

Advantage:

No dependency on government electricity power

Drawback:

Expensive than on-grid solar power system