Types of solar grid systems

The three main types of solar power systems explained

There’s no perfect, one-size-fits-all solution for going solar, but there are three main options you may encounter when researching what’s best for you: grid-tied, off-grid and hybrid.

» LEARN: Types of solar panels

Grid-tied solar power systems

Grid-tied systems are the simplest and most popular to install. Solar panels don’t produce electricity consistently throughout the day, and being connected to the electric grid gives these systems a way to compensate for that inconsistency.

During a power outage, solar energy systems without battery storage have to shut down to protect people working on the power lines.

If your solar panels make more electricity than you need at the moment, like during the middle of the day when no one is home, they can send that excess energy out to the grid instead of it being wasted or lost. Likewise, anytime you need more energy than your panels are producing, like at night or on rainy days, you can receive extra energy from the grid.

This often works through a setup called net metering, which acts as a point system between you and your utility company. Basically, every time you have enough electricity to share, you accrue a credit. Later, when it’s dreary or dark out, you can use those credits to pay for energy from the grid. By the end of the year, your system typically exports more power than it imports, and many people achieve a zero net electricity bill.

Grid-tied systems are great for people who want the flexibility and reassurance of two energy sources without spending extra on solar batteries. With less equipment, the installation is also more straightforward.

However, grid-tied systems are susceptible to power outages. Without a backup battery to store your excess energy, you’re just as vulnerable to blackouts as you were before you installed solar panels.

» MORE: What is a grid-tied solar system?

Off-grid solar power systems

As their name suggests, off-grid solar panel systems are not connected to the electricity grid. Instead of bouncing excess power to the grid, they store it in solar batteries.

Because solar batteries have hefty price tags and require additional equipment (like charge controllers), off-grid systems tend to make a bigger dent in your bank account. They may, however, be your only option if you live in a rural or remote area that doesn’t have access to the grid, and they do have their perks.

Residential solar batteries usually cost between $10,000 and $20,000, including installation.

When you’re completely independent of the grid, you don’t have to adjust to the ups and downs of the energy market or deal with net metering policies. Like any product, energy prices can spike depending on consumer demand. So, when electricity rates increase, it can be a major benefit to avoid reliance on utility companies. You’re also immune to the grid’s blackouts.

The downside is that it’s critical for off-grid systems to be powerful enough to keep your house up and running on their own, and you are still vulnerable to some factors outside of your control. If gray skies and bad weather hit your region for an extended time, you could run out of energy if you don’t have enough battery storage.

“My only disappointment is that we did two Tesla battery wall packs and I wish I would have done three,” said Michael, a ConsumerAffairs reviewer from Hawaii. “At the time you're doing it, you don't know how much a battery is going to hold. I was kind of under the impression that two batteries would carry me for a few days ... even if it was cloudy days.”

» MORE: What is an off-grid solar system?

Hybrid solar power systems

With a hybrid system, you can get the pros of both grid-tied and off-grid systems. Just like grid-tied systems, they have the advantage of pulling from the electric grid when necessary, but unlike grid-tied systems, hybrids aren’t susceptible to utility outages. Your appliances and lights can keep running during a blackout since they can pull power from your battery.

This mix of benefits also means your solar panel array and batteries don’t have to be as large as with a fully off-grid system. Michael, who we mentioned above, luckily had a hybrid system that maintained a connection to the grid, meaning things didn’t go dark just because their batteries ran out of juice.

This flexibility comes at a cost. Hybrid systems are more expensive than grid-tied systems, and in many cases they’re only cheaper than off-grid systems because they utilize smaller arrays and less battery storage.

» MORE: Best solar batteries

How to choose a type of solar power system

If you’re deciding which system is the best fit for your home, consider three factors: your budget, your location and how much space you have.

If you’re ready to go solar, the next step is usually deciding which solar company to work with. You can check out our top picks for solar energy companies to get a head start.