Because protecting the environment is so important today, solar power is growing in popularity among homes and business owners. To explore solar energy, you should first know how on grid solar system works. The blog takes you through all you need to know about on grid solar, covering the way it works, its key parts, its perks and its financial factors, so you can decide if it suits your needs.
What Is an On Grid Solar System?
An on grid solar system is created so it can run simultaneously with the grid provided by your local electricity utility. Your solar panels can send energy directly to the grid by linking to the utility company, unlike off grid systems that need batteries.
One benefit of this design is that during the day, as soon as your solar panels make electricity, your home or business gets to use it. If your panels produce more electricity than your house uses, the extra power is sent back into the grid and you get credits from your power provider through the process of net metering.
If your system’s power isn’t enough, such as at night or with clouds, then electricity comes from the grid. Solar power and grid power interact without problems which is the way on grid solar systems provide a steady electricity supply.
Key Components of an On Grid Solar System
To understand how on grid solar system works, it’s important to know the major components involved:
1. Solar Panels
The operation of the system revolves around solar panels. They turn sunlight into DC electricity. The installation of panels will depend if your system is on your roof or near the ground. Some people have rooftop solar installation company, yet ground-mounted solar panels are the usual choice for commercial sites.
2. Inverter
Because your house requires AC energy, you will not be able to use DC electricity directly from the panels. As a consequence, the energy gets transformed into a format used by appliances and is harmonious with the grid.
3. Bi-Directional Meter
The utility provider installs a special two-way or net meter that shows what electricity you use and whatever surplus energy your solar panels send back to the grid. It allows for the calculation of the total usage and finding out credits for billing.
4. Grid Connection
The utility grid acts as a backup and a partner. It supplies electricity when solar generation falls short and absorbs surplus energy during peak solar production.
How On Grid Solar System Works: Step-by-Step Process
Here’s a simple stepwise explanation of how on grid solar system works:
Solar Panels Generate Electricity
During daylight hours, your solar panels absorb sunlight and convert it into DC electricity.
Inverter Converts DC to AC
This DC power flows to the inverter, which changes it into AC electricity, suitable for your home’s electrical appliances.
Power Your Home Appliances
The converted AC electricity first powers your home or business devices directly.
Export Excess Electricity to the Grid
If your panels generate more electricity than your property consumes, the surplus is sent to the utility grid. This export is recorded by the bi-directional meter.
Import Electricity from the Grid
At night or on cloudy days, when your panels produce little or no electricity, your system automatically draws power from the grid.
This automatic exchange between solar energy and grid electricity is the essence of how on grid solar system works, allowing you to maximize energy savings while ensuring uninterrupted power.

Advantages of On Grid Solar Systems
Learning how on grid solar system works reveals several benefits that have made it a popular choice:
Significant Cost Savings
Many people choose on grid solar to decrease the amount they pay for their electricity each month. According to net metering, the electricity you supply to the grid helps cut your monthly energy bill. The Ministry of New and Renewable Energy (MNRE) reports that solar users might save up to 30-50% of their electricity payments each year.
Low Maintenance Costs
Compared to off-grid systems that require batteries, on grid systems have fewer components, making maintenance simpler and cheaper. The average solar panel maintenance cost is quite low, usually involving only periodic cleaning and inverter checks.
Environmentally Friendly
By relying more on solar energy and less on fossil fuel-generated electricity, you reduce your carbon footprint, contributing positively to the environment.
Grid Reliability
Since the system is connected to the grid, you don’t need to worry about power outages or energy storage, making it a practical choice for areas with a reliable electricity supply.
Factors That Affect How On Grid Solar System Works
Solar Radiation and Location
The efficiency of your solar system depends heavily on sunlight availability, which varies by region. Areas with higher solar radiation provide better energy generation.
System Size and Capacity
Choosing the right system size is critical. Oversized systems increase costs unnecessarily, while undersized systems limit savings. Consulting an expert, especially a rooftop solar installation company, ensures your system fits your energy needs.
Quality of Components
Investing in high-quality solar panels and inverters improves system longevity and efficiency. The durability of your ground mounted solar panels or rooftop panels impacts long-term performance.
Types of Mounting Structures for Solar Panels
The types of mounting structures for solar panels influence installation costs, system efficiency, and maintenance ease:
- Rooftop Mounting: Most popular for residential and commercial buildings, utilizing unused roof space.
- Ground Mounting: Ideal for large open spaces where panels are installed on metal frames fixed to the ground.
- Pole Mounting: Panels mounted on poles allowing for sun-tracking mechanisms.
Selecting the right mounting structure optimizes solar exposure and system performance.
Financial Aspects: Capex Model Solar and Depreciation
Capex Model Solar
Most on grid solar systems are purchased under the capex model solar, meaning you pay upfront for the system, gaining ownership and enjoying long-term savings without monthly leasing fees.
Depreciation on Solar Panels
Over time, solar panels lose their value at a rate of about 5-10% a year. It is necessary to recognize depreciation for your taxes, account books and financial plans related to solar equipment.
What Is Solar Cutting and Its Importance?
Solar cutting you trim solar panels to either fit the space available or fulfill the necessary electricity standards. It improves how the system runs and makes it safer and efficient.
How to Read a Solar Meter: Monitoring Your System
Knowing how to read a solar meter helps you keep track of your solar system’s performance. Most on-grid systems use a bi-directional meter that displays:
- Import reading: Electricity consumed from the grid.
- Export reading: Excess electricity sent back to the grid.
Regular meter reading helps you understand your savings and detect any system issues early.
Solar Panel Maintenance Cost: What Should You Expect?
Maintenance for an on grid solar system mainly involves:
- Cleaning panels to remove dust and debris.
- Checking inverter health periodically.
- Inspecting wiring and connections annually.
Generally, solar panel maintenance cost account for 1-2% of the total system investment annually, making it a highly cost-effective energy solution.
Choosing the Right Rooftop Solar Installation Company
Since how on grid solar system works depends largely on correct installation, choosing a professional rooftop solar installation company is vital. They assess your energy needs, recommend system size, select components, and ensure compliance with regulations.
Ground Mounted Solar Panels vs Rooftop Solar Systems
While rooftop systems save space and utilize existing structures, ground mounted solar panels offer flexibility in placement and easier maintenance. For larger installations, ground mounting is often preferred for maximizing power generation.
Conclusion: How On Grid Solar System Works for Your Benefit
Being aware of how on grid solar system works allows you to benefit from its low cost, environmental care and good efficiency. Since you need little maintenance with on-grid solar and it receives government aid, while offering up to a 50% decrease in electricity bills, it’s a good choice for any company.
When you choose a solar installation company or plan to set up your panels on the ground, you must ensure the system is tailored to what your place and family require. And you can also talk with the best solar panel dealers in Udaipur.
Try solar energy now to support sustainability and notice a reduction in your costs.
FAQ’s
What is the disadvantage of on-grid solar systems?
The benefit of the operation depends on the grid. Close automatically during a power failure without battery backup. Although there is a solar panel, there is no power during a power outage. Full energy, lack of freedom.
Which is better, on grid or off-grid solar?
The best option between solar and solar energy outside the web depends on your specific needs and circumstances. Systems online are generally more cost-effective and reliable, especially for those who do not need access to a stable grid and backup. On the other hand, off-network systems provide energy power and are ideal for remote places or regions with incredible grid connection, but come up with high advanced costs and maintenance requirements.
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