What Is a Grid-Tied Solar System, And How Does It Work?

Thinking about home energy solutions that are both connected to solar panels and the grid? It's called a grid-tied solar system, which operates in an interesting way. To assist you, here is all the information you should know about it. 

Keep reading to learn about what a grid-tied solar system is, its costs, advantages, disadvantages, and more. Let’s take a look!

What Is a Grid-Tied Solar System?

grid tred solar system

There are three types of solar panel systems: off-grid(only solar panels), grid-tied (connected with grid), and hybrid solar systems(you can use either solar or grid).

A grid-tied solar system, as the name suggests, connects to the main electricity grid and solar panels. These are sometimes called on-grid, utility-interactive, grid intertie, or grid backfeeding systems. In this system, the solar setups connect to the regular electricity grid. 

This system is a popular choice for many homeowners for several reasons. They are more affordable than standalone systems, and you don't have to worry about running out of power as long as the grid is working, even during dark days.

How Does a Grid-Tied Solar System Work? 

So, here's the basic idea: Solar panels still convert sunlight into electricity for your home. But when you're connected to the grid, you can tap into the grid's power if your solar panels don't provide enough. And if your panels make extra electricity, like when nobody's home during the day, that surplus power goes back into the grid. You often get credits for this extra electricity, which can offset what you use from the grid.

Related article: A Comparative Analysis of Off-Grid Vs. Grid-Tied Solar Energy Systems

How Are Grid-Tied Solar Systems Different From Other Systems? 

Grid-tied solar systems have installed solar panels that rely completely on solar energy solutions. Then, the excess energy is shared with the electrical grid. Interestingly, you can also pull the shared power back when you are in need. For example, at night or when solar panels cannot generate electricity. So, this self-contained system generates and stores energy.

In comparison, an off-grid system depends on solar energy solutions and stores excess energy in backup systems with access to power 24/7. Also, the grid system completely relies on an electric grid, and the home may have an energy backup when the electric grid fails due to any reasons. Lastly, the hybrid system is where you are connected to solar and electric grids and can use any of them.

The unique characteristic of the grid-tied system is that it shares extra electricity created by solar panels with the electric grid. Also, it can take it back during need. This makes it different from all other systems. 

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What are the Advantages of a Grid-Tied Solar System?

Below are some of the advantages of a grid-tied solar system. 

Economical Savings with Net Metering:

Opting for a grid-tied solar system offers significant financial benefits for the following reasons:

  • Grid-tied systems are generally more cost-effective and easier to install.
  • Solar panels often generate surplus electricity beyond immediate needs. Through net metering, homeowners can redirect this excess power to the utility grid instead of requiring expensive battery storage. Without this mechanism, residential solar systems would be less financially viable.
  • Many utility companies are committed to purchasing excess electricity from homeowners at the same rate they charge, providing a financial advantage.

The Grid as an Efficient "Virtual Battery"

  • Electricity must typically be consumed immediately, but it can also be temporarily stored in alternative forms, like chemical energy in batteries. However, conventional energy storage methods often result in significant energy losses.
  • The electric power grid serves, in many ways, as a "virtual battery" without the need for maintenance or replacement, boasting superior efficiency rates. This means that less electricity (and less money) is wasted compared to conventional battery systems.

Grid-tied systems have the ability to tap into backup power from the utility grid when your solar panels aren't producing electricity. Furthermore, you help reduce the load on the utility company's busiest times for making the entire electrical system work better.

What are the Disadvantages of a Grid-Tied System?

Higher Initial Costs:

Putting solar panels near existing power lines can make solar electricity more expensive than regular electricity. Solar power, even at its cheapest, can cost about two to four times as much as what you get from the utility company.

Think of installing a grid-tied solar system, like paying your electricity bill all at once, but for many years in advance because of these higher initial costs.

Complex Rules and Permits:

Getting the right permissions and following the rules for a grid-tied solar system can be costly, confusing, and take a lot of time. Even though there are some national standards, different regions often have their own special rules. So, you usually start by talking to your local city or county building department.

In simple terms, grid-tied solar systems have some downsides, like needing the regular power grid, higher upfront costs, and dealing with complex rules and permits, which might not be ideal for everyone.

Reliance on the Grid:

If the regular power grid has a problem and goes off, your solar system will also turn off. This is to keep electricity from going back into the grid, which could be unsafe for workers. So, during a grid outage, you won't have power. But when the grid comes back, your system will start working again.

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You'll still need the grid, so you won't be completely self-sufficient in terms of power. So, to overcome this problem, we recommend you choose the following batteries from BLUETTI. 

1. BLUETTI EP500Pro Power Station | 3,000W 5,100Wh

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The BLUETTI EP500Pro Power Station offers a powerful and versatile energy solution with a 5,100Wh LiFePO4 battery, providing over 3,500 charge cycles. It delivers a stable 3000W pure sine wave output and can be used as a movable power station.

With its In-grid UPS Mode and Flexible UPS Mode, it ensures uninterrupted power supply 24/7. This power station is suitable for both in-grid and off-grid energy storage needs.

2. BLUETTI AC500 + B300S Home Battery Backup

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The BLUETTI AC500 + B300S Home Battery Backup is a powerful energy solution with 5,000W of rated power, expandable capacity from 3,072Wh to 18,432Wh, and multiple recharge options. You can connect it to your home grid for continuous power, and it comes with a 4-year warranty for the main units and 1-year for accessories.

3. BLUETTI B300 Expansion Battery | 3,072Wh

The BLUETTI B300 Expansion Battery, with 3072Wh capacity, features a smart MPPT for quick solar recharging at up to 200W. 

The BLUETTI B300 Expansion Battery is a robust lithium iron phosphate battery with a large capacity, long lifespan, and advanced management systems to ensure efficient and safe working of products.

How Much Does a Grid-Tied Solar System Cost? Factors to Consider

The cost of a grid-tied solar system varies based on factors like your energy usage, system size (typically 8kW to 16kW), and location. Roughly, it can range from $24,000 to $42,000. 

Payback time is usually 12-17 years, but remember, solar panels can save you money for over 25 years. New homes can determine system size based on roof space and budget. Other factors include installation type, mounting, roof details, power coverage, incentives, and location.

Factors to Consider

Here are some of the factors to consider when buying a grid-tied solar system. 

Panel Type: Choose between monocrystalline (efficient), polycrystalline (cost-effective), or upcoming Perovskite-silicon panels (highly efficient).

System Size: More panels mean more energy but also a higher cost.

System Complexity: Additional gadgets can boost efficiency but may increase the price.

Aesthetics: If you want a more attractive system, like solar roof tiles, expect a slightly higher cost.

Energy Usage: Ensure your system meets your energy needs; oversizing can lead to unnecessary expenses.

Energy Production: Larger systems may cost more but can generate surplus energy for potential income.

Property Suitability: Ideal locations are unobscured, south-facing, and sloped roofs; other locations may add to the cost.

Grants and Incentives: Explore available incentives that can help offset costs.

Negotiation and Research: The competitive solar market allows room for negotiation, so research and haggling can be beneficial.

Geographical Location: Sunnier regions yield better energy production, cost savings, and access to renewable energy support.

Solar Storage: Consider the cost and timing of solar battery installation, which can impact overall expenses and VAT considerations.

These factors collectively influence the cost and efficiency of your solar system.

Final Thoughts

To put it simply, a grid-tied solar system is a smart way to power your home using solar energy. It connects to your local power grid, which has some great financial benefits like saving your money on electricity bills. 

However, you can make your solar system even better by adding products like the BLUETTI batteries we mentioned earlier. This system can keep your power on even if the grid is down. 

So, if you're looking for reliable working of your grid-tied solar system, then do not forget to remember the factors we discussed. You can also consider the recommended energy products to make it even more reliable.