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There are three types of solar energy systems: on-grid systems, off-grid systems, and hybrid solar energy systems.

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Each type of system has a unique setup that affects the equipment used, installation complexity, and, most importantly, costs and potential savings.

Which is best for your situation? Let's take a closer look at the pros and cons of the various types of solar energy systems.

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On-Grid Solar Energy Systems

On-grid systems are solar installations connected to the public power grid. With an on-grid system, the house can use solar energy generated by the solar panels in addition to electricity from the grid.

If the solar panels produce more electricity than needed, the surplus is sent to the grid. In some areas, the utility company will buy the solar energy sent to the grid as part of a net metering credit system to offset future electricity costs, thanks to a billing structure known as net metering.

On-grid solar panel systems are very popular as they provide the best value for their cost, especially in areas with full net metering. Their low cost is due to requiring less equipment than other types of solar energy systems. However, this also means that on-grid systems cannot power lights during a power outage.

Advantages

• Cheapest residential solar energy system

• Less equipment required

Disadvantages

• No backup power source

See how much an on-grid solar energy system can save you annually

Off-Grid Solar Energy Systems

An off-grid solar energy system is a solar panel system that has no connection to the power grid. To keep a home running without the grid, you need solar panels, a large amount of battery storage, and you often need another backup power source, such as a gas-powered generator.

Often referred to as independent systems, these are popular among owners who do not have grid access, such as in rural areas or remote cabins.

Believe it or not, there are many places across the country where the power grid does not provide service. Off-grid systems provide electricity access in these remote areas. Being off the grid also gives you greater self-reliance; you are not reliant on a utility company, and the power is in your hands.

However, off-grid systems can be very expensive. You need a lot of battery storage to run the entire home without help from the grid, and this adds to the cost. Going off-grid also requires certain lifestyle changes. You must be very energy conscious when you do not have a grid with an unlimited supply. Off-grid homeowners need to monitor their energy consumption and solar energy production to ensure they have the necessary electricity.

Advantages

• Provides electricity in areas without grid access

• Self-reliant

Disadvantages

• Very expensive

• Requires lifestyle changes

Hybrid Solar Energy Systems

Hybrid solar energy systems combine the best of both on-grid and off-grid systems; the solar panels are connected to batteries and the public grid. You will often find that hybrid solar energy systems are referred to as integrated solar energy systems.

Integrated solar energy systems are popular in areas that experience frequent grid outages or in places that do not provide full access to net metering. Without a battery, solar panels cannot power your home during a power outage. Batteries also allow you to rely less on the grid by using stored energy when solar panels do not produce electricity. This allows you to use as much clean energy as possible for your home!

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Additionally, batteries can provide some savings if you do not have full access to a net metering system. However, the high cost of batteries often means they are not financially feasible.

Here are some pros and cons of installing an integrated hybrid solar energy system:

Advantages

• Provides backup energy

• Increased energy independence

• Can save more money on electricity bills

Disadvantages

• Expensive

• Not always the right financial choice

How to Choose the Best Solar Energy System for You

Typically, an on-grid system will be the most financially viable option. On-grid systems generally offer the best return on investment due to their lower cost and simpler design.

However, there are certain situations where a hybrid system may make more sense for you, especially if you experience frequent power outages. If you truly value energy independence and are eager to increase the amount of renewable energy your home uses, a hybrid solar energy system may be what you are looking for.

Off-grid systems may be the least practical for homeowners in day-to-day life. However, they are excellent for remote areas and may be the right choice for your mountain cabin.

The best way to determine the right system for you is to contact local solar energy companies. Local installers will have the best understanding of the proper solar energy system to install in your area and how you can maximize your solar panel usage.

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