There are a few main benefits of using a grid-tied configuration when going solar, including:
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Grid-tied solar installations have a lower cost than off-grid systems.
Based on our March survey of 1,000 homeowners with solar, an average solar system costs between $15,000 to $20,000. Incentives like the 30% federal solar tax credit can lower your costs even further.
Off-grid solar systems are more expensive because you have to add an energy storage system large enough to power your home during extended periods. Batteries like the Tesla Powerwall cost around $9,000 without installation, and you may need more than one unit. Assuming you needed three batteries, your off-grid solar system cost would increase to around $47,000 or more.
You can also use battery storage systems with grid-tied solar arrays, but you can use a smaller battery for optimal return on investment. But with grid-tied systems, you can rely on backup power from the utility grid during consecutive days of cloudy weather, which is more cost effective than installing a large battery you may not use at full capacity.
You can claim the federal solar tax credit for all types of solar systems: grid-tied, off-grid and hybrid. However, you may find certain state and local incentive programs are exclusively for grid-tied solar systems. Off-grid systems are not only more expensive but eligible for fewer incentives.
Most states offer net metering or net billing programs, allowing homeowners to sell the excess energy their solar panels generate to local power companies in exchange for billing credits. Net metering allows you to lower your energy bills by using billing credits to offset your grid consumption. You can send excess power to the grid during the day in exchange for power bill credits, which you can subtract from your bills to cover grid energy use at night.
All solar energy systems reduce your utility bills and carbon emissions regardless of the configuration. Under favorable sunlight conditions, a 5 kilowatt (kW) solar system can generate over 7,500 kilowatt-hours (kWh) of electricity per year. If your power company charges 20 cents per kilowatt-hour, you can potentially save over $1,500 each year.
By generating clean electricity, you also lower your home’s carbon footprint. According to the Energy Information Administration, coal releases 2.26 pounds of CO2 emissions per kilowatt-hour, while natural gas releases 0.97 pounds per kilowatt-hour. If the local grid relies heavily on fossil fuels and you switch to solar power, you are offsetting emissions using renewable energy.
Grid-connected solar systems use inverters capable of following the local grid voltage and frequency with high accuracy. Thanks to this feature, your photovoltaic (PV) system integrates seamlessly with the electrical grid. This means that:
Electricity can flow from your solar system to your home, from your solar system to the grid, or from the grid to your home. Your system can automatically accomplish these dynamics without you having to flip a physical switch since a grid-tied solar array is synchronized with the grid voltage.
As previously described, net metering sends excess energy to the local power grid when your solar panels generate more electricity than you will use. Your utility company measures energy exports using a special power meter and then converts the energy into a credit you can subtract from your next bill.
A battery system becomes optional when net metering is available with billing credits at the full retail rate of electricity. In this case, you are essentially using the grid as your solar battery and offsetting consumption with billing credits that cost the same as electricity.
There are several ways to increase the energy production of a grid-tied solar power system.
The most efficient solar panels can convert over 20% of sunlight into electricity. Canadian Solar currently hold the efficiency record in the solar industry, offering panels with up to 22.8% energy conversion efficiency. With a higher system efficiency, your power bill savings will also increase.
Even the most efficient panels will suffer from low productivity if constantly covered by shadows. The best solar companies take the time to analyze shading conditions during your initial site assessment to identify the best locations for your solar panels.
Solar panels generate direct current (DC) power, so you need a solar inverter to convert energy into the alternating current (AC) required to run your home appliances. Most systems use string inverters that wire your solar panels together in circuits and connect to a central inverter that converts the power output. But in this setup, a shadow covering one panel will cause all other panels in the circuit to suffer a performance drop.
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If shading is unavoidable, you can use microinverters or power optimizers to improve the efficiency of your solar array. Installers place either device directly on your solar panels to optimize a panel’s individual electricity output. While power optimizers do not convert energy, microinverters convert the power output from DC electricity to AC electricity at the source, eliminating the need for a string inverter.
Enphase is a leading provider of microinverters, while SolarEdge is a leading provider of string inverters with power optimizers.
Accumulated dust has the same effect on your solar panels as shadows, blocking part of the sunlight from reaching the PV modules. Solar systems work best when cleaned regularly — many manufacturers and installers recommend cleaning your system at least two times per year.
Grid-tied solar systems are the most cost-effective option for homeowners who want to generate their own electricity. The best residential solar panels last more than 25 years, and you can achieve a payback period of six to 10 years depending on your system size, cost and local incentives.
With a grid-tied system, you can purchase an optimally-sized battery to cover nighttime consumption and provide power during blackouts, or you can rely on grid power. On the other hand, an off-grid solar system requires a much larger battery since it must power your home for extended periods at full capacity.
You can install a grid-connected system with battery backup for around $20,000 to $30,000, but might spend up to $45,000 or when going fully off-grid. In most cases, the potential savings from going off-grid don’t compensate for increased system costs.
On grid solar systems offer a multitude of benefits to homeowners and businesses alike. From financial savings to environmental impact, let's explore the remarkable advantages.
One of the most compelling benefits of on grid solar systems is the substantial cost savings they provide. By generating your electricity, you can significantly reduce or even eliminate your monthly electricity bills. As the cost of traditional electricity continues to rise, your solar system becomes an invaluable long-term investment that pays for itself over time. With proper sizing and efficient system design, you can enjoy considerable financial savings for decades.
Embracing on grid solar systems is a powerful step towards reducing your carbon footprint and promoting a cleaner, greener environment. Solar energy is a clean and renewable source of power that produces no harmful emissions during operation. By transitioning to solar power, you contribute to the reduction of greenhouse gas emissions, air pollution, and dependence on fossil fuels. Your decision to go solar actively supports global efforts to combat climate change and create a more sustainable future for generations to come.
With an on grid solar system, you become less reliant on the traditional power grid. By generating your electricity on-site, you gain a degree of energy independence and security. This becomes particularly valuable during power outages or emergencies when the grid might be compromised. Your solar system continues to operate, providing you with a reliable source of power and ensuring that your essential appliances and systems remain functional.
On grid solar systems are known for their durability and low maintenance requirements. Once installed, they require minimal attention, with occasional cleaning of the solar panels and inspection of connections. Solar panels typically come with warranties of 25 years or more, indicating their long lifespan and reliability. This ensures that your investment continues to deliver returns for many years, requiring only minimal upkeep.
Governments worldwide recognize the importance of renewable energy and often provide incentives and rebates to promote the adoption of on grid solar systems. These incentives can take the form of tax credits, grants, feed-in tariffs, or other financial benefits. By taking advantage of these programs, you can further reduce the upfront cost of installing a solar system and enhance your return on investment.
The initial step in the on grid solar system working procedure involves the solar panels converting sunlight into direct current (DC) electricity. These panels consist of photovoltaic (PV) cells that absorb the energy from the sunlight and generate a steady flow of electrons.
The DC electricity produced by the solar panels is then sent to an inverter. The primary role of the inverter is to convert the DC electricity into alternating current (AC), which is the standard form of electricity used in homes and businesses. This conversion ensures compatibility with the electrical systems of your property.
In addition to the DC to AC-conversion, grid-tied inverters also regulate the amount and voltage of the electricity fed into the household. Since solar systems can often generate more power than a home needs, the grid-tied inverter ensures that the electricity supplied to your home is at the appropriate levels, preventing any overload or voltage fluctuations.
Once the electricity is converted to AC and regulated; it is ready for consumption within your home. The converted power supply is directed through the main electrical distribution panel, which routes the electricity to various circuits and outlets in your household. At this stage, you have access to clean and green electricity, contributing to a cleaner and more sustainable environment.
By following these steps, on grid solar systems enable homes to harness the power of the sun and use it as a reliable source of electricity. With solar panels converting sunlight to DC electricity, inverters performing the DC to AC conversion and regulation, and the electricity distributed throughout the home, you can enjoy the benefits of clean energy and actively participate in creating a greener future.
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