Types
What Is Grid‑Tied (On‑Grid) Solar Power System? Working, Cost & Reviews
Grid-Tied or On-grid solar power system is the best option for you, why? After reading this detailed article that I have written, you are able to decide why i used this statement. You are also able to decide if it is not for me or just for me. I define on grid solar system, then its working, cost, benefits & limitations, why it’s different from off-grid & hybrid solar systems, reviews, & Why Fordan Solar is the best option for you!
What is a Grid‑Tied (On‑Grid) Solar Power System?
A grid-tied solar power system directly connects your solar panels to the public electricity grid. It generates power for immediate use in your home. Any surplus electricity your solar panels produce flows back onto the grid. When your system doesn’t generate enough (e.g., at night), power is drawn from the grid. A specialized meter tracks this two-way exchange.
Example: The Patel household installs a 6kW grid-tied system. On a sunny afternoon, your solar panels generate 5kW. The home appliances use 3kW. The surplus 2kW automatically flows out through the meter onto the public grid. After sunset, your solar panels generate zero power. The home draws 1kW from the grid. The meter records: 2kW exported, 1kW imported. The Patels are billed only for the net 1kW imported (or credited for net exports, depending on local rules).
How Grid-Tied or On-Grid Solar Works?
A grid-tied solar system connects directly to the main electricity grid. Solar panels capture sunlight, generating DC electricity. An inverter converts this DC power into usable AC electricity. This AC power flows into the home’s circuits for immediate usage.
On the other hand, any excess energy generated by the solar panels flows into the main electricity grid through a special bi-directional meter. Conversely, on the other hand, when solar production is low (like at night), power is drawn from the main electricity grid to meet the home’s needs. The meter tracks the net energy exchange.
Core Process Points:
- Sunlight Capture & DC Generation: Solar panels convert sunlight into DC electricity.
- DC to AC Conversion: An inverter transforms the DC power into standard AC electricity compatible with home appliances and the main electricity grid.
- Immediate On-Site Consumption: The AC power is first used by the home on the premises, reducing the need for power from the grid.
- Export of Surplus Power: Energy generated by the solar panels exceeding immediate usage automatically flows into the main electricity grid.
- Import During Shortfall: When solar production falls below home usage (e.g., night, heavy clouds), the home seamlessly draws power from the main electricity grid.
- Net Metering: A bi-directional meter constantly measures the flow of electricity into the grid (export) and the flow of electricity from the grid (import). The owner is billed only for the net energy used (import minus export) over the billing period.
How Much Does a Grid-Tied Solar System Cost/Price?
The cost of a grid-tied solar system depends on several factors:
- System Size: Measured in kilowatts (kW), larger systems generally have a lower cost per watt due to economies of scale.
- Components: Includes photovoltaic panels, solar inverters (or hybrid inverters for battery systems), mounting hardware, and the meter for grid connection.
- Battery Backup: Adding a solar battery increases the cost but provides energy security.
- Location: Installation costs and incentives differ across Australian states and territories.
- Rebates: The federal solar rebate (via the Small-scale Renewable Energy Scheme, SRES) reduces upfront costs, and some states offer additional incentives.
Residential Grid-Tied Solar System Costs
Residential systems typically range from 5kW to 10kW, suitable for household energy needs. Costs include panels, inverters, installation, and permits. For systems with battery backup, a hybrid inverter and solar battery are added (assumed here as 5kWh for 5kW systems and 10kWh for 10kW systems).
Residential Grid-Tied Solar System Costs (AUD, after federal rebate)
| State/Territory | 5kW System | 10kW System | 5kW with 5kWh Battery | 10kW with 10kWh Battery |
|---|---|---|---|---|
| NSW | $6,000 | $10,000 | $12,000 | $20,000 |
| VIC | $5,800 | $9,800 | $11,800 | $19,800 |
| QLD | $6,200 | $10,200 | $12,200 | $20,200 |
| SA | $5,900 | $9,900 | $11,900 | $19,900 |
| WA | $6,300 | $10,300 | $12,300 | $20,300 |
| TAS | $6,100 | $10,100 | $12,100 | $20,100 |
| NT | $6,500 | $10,500 | $12,500 | $20,500 |
| ACT | $6,000 | $10,000 | $12,000 | $20,000 |
- National Average: 5kW: $6,000; 10kW: $10,000; 5kW with 5kWh battery: $12,000; 10kW with 10kWh battery: $20,000.
- State Variations:
- VIC and SA may have slightly lower costs due to higher competition and incentives.
- WA and NT may be higher due to remote installation costs.
- Battery Costs: Assumed at ~$6,000 for 5kWh and ~$10,000 for 10kWh, including hybrid inverter and installation, after federal battery rebate (~30% discount).
- Sources: Extrapolated from national data (e.g., 6.6kW at $7,250, 10kW at $10,000, 6.6kW with 9.6kWh at $13,888).
Commercial Grid-Tied Solar System Costs
Commercial systems range from 10kW to 100kW or more, often installed on businesses or industrial sites. Costs per watt decrease with size due to economies of scale, but battery backup is less common and more expensive due to larger capacity needs.
Commercial Grid-Tied Solar System Costs (AUD, after federal rebate)
| State/Territory | 10kW System | 20kW System | 50kW System | 100kW System | 10kW with 10kWh Battery | 20kW with 20kWh Battery |
|---|---|---|---|---|---|---|
| NSW | $12,000 | $24,000 | $60,000 | $120,000 | $22,000 | $44,000 |
| VIC | $11,800 | $23,600 | $59,000 | $118,000 | $21,800 | $43,600 |
| QLD | $12,200 | $24,400 | $61,000 | $122,000 | $22,200 | $44,400 |
| SA | $11,900 | $23,800 | $59,500 | $119,000 | $21,900 | $43,800 |
| WA | $12,300 | $24,600 | $61,500 | $123,000 | $22,300 | $44,600 |
| TAS | $12,100 | $24,200 | $60,500 | $121,000 | $22,100 | $44,200 |
| NT | $12,500 | $25,000 | $62,500 | $125,000 | $22,500 | $45,000 |
| ACT | $12,000 | $24,000 | $60,000 | $120,000 | $22,000 | $44,000 |
Notes:
- National Average: 10kW: $12,000; 20kW: $24,000; 50kW: $60,000; 100kW: $120,000; with battery adds ~$10,000–$20,000 depending on size.
- State Variations:
- NT and WA may see higher costs due to logistics.
- VIC and SA may benefit from lower labor rates.
- Battery Costs: Estimated at $1,000/kWh installed, after federal rebate, with savings from shared hybrid inverter.
- Eligibility: Systems up to 100kW qualify for SRES rebates; larger systems use Large-scale Generation Certificates (LGCs).
What Are The Advantages & Disadvantages of Grid-Tied Systems?
Grid-tied solar systems, also known as grid-connected solar systems, are a popular option for homeowners and businesses looking to generate solar energy while staying linked to the utility grid. These systems allow users to produce their own electricity and often exchange excess power with the grid. However, they come with both benefits and limitations.
Advantages of Grid-Tied Solar Systems
- Savings Through Energy Credits
A key benefit of grid-tied systems is the potential to lower electricity bills. When your solar panels produce more power than you use, the solar surplus is sent to the grid, earning you energy credits from your utility company. These credits offset the cost of electricity you draw from the grid when your panels aren’t generating enough, such as at night, making it a cost-effective solution over time. - Positive Environmental Impact
By harnessing solar power, grid-tied systems reduce reliance on fossil fuels, leading to a smaller environmental impact. This shift to renewable energy helps cut greenhouse gas emissions, supporting efforts to address climate change. For those prioritizing sustainability, this is a compelling advantage. - Utilizing Solar Surplus for Profit
In some regions, you can sell your solar surplus back to the grid at favorable rates through specific programs. This turns your solar system into a potential revenue source, especially if your setup generates more power than you consume. It’s an attractive perk for maximizing financial returns. - No Need for Battery Storage
Unlike off-grid systems, grid-tied setups don’t require expensive battery banks to store energy. This eliminates additional setup expenses and maintenance, making the system simpler and more affordable to install. The grid acts as a virtual storage solution, balancing your energy needs. - Support for Grid Demand
By feeding excess power into the grid during peak production times, grid-tied systems help meet grid demand. This can ease pressure on utility providers, especially in areas with widespread solar adoption, contributing to a more balanced energy network.
Disadvantages of Grid-Tied Solar Systems
- Grid Dependency Issues
A significant downside is the system’s grid dependency. If the utility grid goes down, your solar system typically shuts off for safety reasons, leaving you without power even if the sun is shining. This reliance can be a major drawback in regions prone to outages. - Exposure to Policy Shifts
The financial perks of grid-tied systems, like earning energy credits or selling solar surplus, depend on local regulations and utility policies. Policy shifts—such as reduced credit rates or new restrictions—can erode these benefits, introducing uncertainty over the system’s long-term value. - Higher Setup Expenses for Add-Ons
While basic grid-tied systems avoid battery costs, adding features like backup power or advanced monitoring increases setup expenses. These enhancements can make the system more versatile but also less budget-friendly, potentially offsetting some of the initial savings. - No Power During Outages
Without battery storage, grid-tied systems can’t provide electricity during blackouts. This lack of energy resilience means you’re fully dependent on the grid’s availability, which could be a critical limitation for those needing uninterrupted power. - Maintenance of Grid Connection
The connection to the grid introduces some complexity, including inverters and metering equipment that require occasional upkeep. While not overly demanding, maintaining this grid integration can lead to extra costs or technical challenges over time.
When you need to choose on grid system?
Select an on-grid (grid-tied) solar system under these conditions:
- Utility Grid Reliability:
Your area has stable grid infrastructure with infrequent outages. On-grid systems lack backup power during grid failures. - High Electricity Costs:
Local utility rates exceed $0.25/kWh. Solar offsets daytime usage, reducing bills via net metering credits. - Net Metering Availability:
Your utility offers fair feed-in tariffs (FiTs) for excess energy exported to the grid. Avoid if FiTs are negligible (<$0.05/kWh). - Financial Prioritization:
Minimizing upfront cost is critical. On-grid systems are 40–60% cheaper than hybrid/battery-backed alternatives. - Roof Space & Sun Exposure:
Unshaded roof area aligns with system size (e.g., 20–30m² for 6.6kW). Limited space favors grid reliance during low production. - Regulatory Simplicity:
Permitting for grid-connection is streamlined in your region (e.g., VIC/QLD). Avoid if local grid-approval delays exceed 6 weeks. - No Backup Requirement:
Critical loads (medical equipment, servers) don’t mandate uninterrupted power. Grid acts as the “battery.”
What Is the Difference Between a Grid-Tied and Off-Grid Solar System?
A grid-tied system connects to the utility grid, exporting surplus energy for credits and relying on the grid when solar production is insufficient. An off-grid system operates independently, using batteries for storage and generators for backup, with zero grid interaction.
Key Differences
| Feature | Grid-Tied System | Off-Grid System |
|---|---|---|
| Grid Connection | Direct link to utility grid | No connection to utility grid |
| Energy Storage | Not required (grid acts as backup) | Mandatory (battery bank stores excess energy) |
| Power During Outages | Shuts down during grid failures (safety compliance) | Operates during outages via batteries/generator |
| Component Complexity | Simpler: Panels + Inverter + Bi-directional meter | Complex: Panels + Charge controller + Battery bank + Off-grid inverter |
| Cost | Lower upfront cost (no batteries) | 2–4x higher (batteries + additional hardware) |
| Surplus Energy | Exported to grid → Earns feed-in tariffs | Stored in batteries → Excess often wasted if batteries are full |
| Scalability | Easily expandable (add panels/inverter) | Limited by battery capacity and charge controllers |
| Maintenance | Minimal (panel cleaning, inverter checks) | High (battery replacements, generator fuel, voltage regulation) |
| Ideal For | Urban/suburban areas with reliable grid | Remote locations, cabins, or regions with no grid access |
| Energy Security | Dependent on grid stability | Self-sufficient but requires careful energy budgeting |
Why hybrid grid is different from grid tied solar system?
A hybrid solar system differs from a grid-tied system by integrating battery storage and a hybrid inverter, enabling three core functions:
- Stores surplus energy in batteries for use during grid outages or at night.
- Maintains power during grid failures (unlike grid-tied systems, which shut down).
- Optimizes energy use by prioritizing battery discharge over grid imports.
Grid-tied systems lack batteries, export all excess energy to the grid, and offer zero backup power. Hybrid systems cost 40–60% more but provide energy resilience and reduced grid dependence.
What are the Components Needed For a Grid-Tied System?
A grid-tied solar system’s components work sequentially to capture, convert, and synchronize solar energy with the utility grid. Solar panels mounted on racking structures generate direct current (DC) electricity from sunlight.
This DC electricity flows to a critical grid-tie inverter, which transforms it into utility-compatible alternating current (AC) while synchronizing voltage and frequency with the grid. Safety isolator switches (DC and AC) enable secure disconnection for maintenance.
The AC electricity enters the home’s electrical panel, powering appliances directly. Any surplus energy not consumed onsite routes through a bi-directional meter (tracking both imported and exported power) to the grid connection point, feeding excess electricity into the public network.
What are the Reviews On grid-tied solar systems?
Grid-tied solar systems in Australia connect to the utility grid, enabling properties to generate power from sunlight and exchange excess electricity for feed-in credits. Costs for residential systems (5kW–10kW) range from $5,800–$20,500, while commercial setups (10kW–100kW) span $11,800–$125,000, with batteries adding $10,000–$20,000 for energy storage.
After analyzing the summary of reviews, the Advantages include cost savings on electricity bills, environmental benefits, and revenue from surplus power.
Disadvantages involve reliance on the grid, exposure to policy shifts, and outages without battery backup. Reviews praise the savings and eco-impact but note concerns over grid limitations and the need for batteries in some roof designs or outage-prone areas.
Does a grid-tied system have battery backup?
No, a standard grid-tied solar system does not include battery backup.
Its design relies solely on the utility grid for balancing supply and demand. Solar panels feed electricity directly into your home and the grid via a grid-tie inverter.
During low production (e.g., nighttime), power is drawn from the grid. During outages, the system shuts down automatically for safety—no backup power exists.
Which is better suited for a grid-tied solar system: residential or commercial use?
For residential use, it cuts electricity bills and boosts energy independence.
For commercial use, it sharply reduces operational costs and meets high energy demands. Commercial use suits it better due to greater energy needs and larger savings. A grid-tied solar system connects to the utility grid and sends excess energy back to it.
What are the best companies that install grid-tie solar?
The best Companies are RESINC Solar, Jet Solar Pty Ltd, Goliath Solar and Electrical, and MC Electrical, but Fordan Solar is also the best company that installs grid-tied, off-grid solar systems. Here are some Happy reviews:
