Charge up your savings by choosing the right solar system
Grid-tied solar lets you hook up to the local power grid.
With grid-tied, you can be reimbursed for excess solar energy.
Stand-alone solar isn’t connected to the local grid.
Stand-alone tends to cost more because you need to pay for battery storage.
You can opt for hybrid solar, which ties to the grid and has a battery backup.
Solar power is great for the planet, reduces your home's carbon footprint, and lowers your energy bills. But which type of system do you need? For the biggest payback, grid-tied solar is the better choice, but for total energy self-reliance, stand-alone systems are best. And then there's the hybrid system. Explore the different types of solar energy systems to figure out which one is right for you.
With grid-tied solar, the solar setup on your property is directly connected to the local power grid. There are no batteries or energy storage requirements, as excess energy gets stored in the local energy network.
With grid-tied systems, if there's no solar energy available from your home setup, you can still draw regular grid power. And, if it's nice and sunny, and your panels are creating more energy than your household consumes, then it's fed back to the grid. You're usually reimbursed for the excess energy your solar panels generate, too, which further reduces your energy costs and helps you recoup the cost of installing the solar panels.
With stand-alone solar, your power system is insular and not connected to the local power grid. Instead, the solar panels produce energy that travels through the inverter to a power bank or system of solar storage batteries. Then your home pulls electricity from the battery bank for consumption.
With a large-capacity battery bank, such as multiple Tesla Powerwalls, you can store enough energy to keep your home running for up to a month, including running multiple large appliances, even if your solar panels aren't running at optimum levels.
Stand-alone solar costs more than grid-tied because of the need for battery storage, and you won't get reimbursed for excess energy sent to the local grid. But you will be completely self-sufficient for energy, and you can use a gas generator as a secondary backup and won't be affected by local power outages.
A hybrid system is still tied to the grid, but it has a battery backup. So, in the event of a power outage, you still have power to your home via the battery unit. The time to recoup your investment is lower than regular grid systems because the excess solar energy fills your battery backup first, before the overage goes to the local grid. Plus, installing a solar storage system is more costly than a standard tied system.
While these hybrid systems are not meant to go fully off-grid, they can meet the basic power needs of your household for a few days at a time.
| Pros of Grid-Tied Solar | Cons of Grid-Tied Solar |
|---|---|
| Lower installation cost | No battery backup |
| Easiest to maintain | If the grid suffers a power outage, so will you |
| Reimbursed for excess energy production | Interconnection agreements can include liability insurance, fees, and more to protect the grid from your home |
| Draw power from the grid when solar panels not generating enough | Some utilities charge a standby fee to offer you backup power when your solar system isn't generating enough |
| Some utility companies offer multi-year price locks when you tie a solar system into their grid | Separate buildings that don't already have a grid connection, such as a barn or outbuilding, can't be grid-tied unless you also pay for the installation of power cables and connection to the grid |
| No limit to how much energy you can use | |
| Average saving of 50% of energy costs |
| Pros of Stand-Alone Solar | Cons of Stand-Alone Solar |
|---|---|
| Provides independence and self-sufficiency | It requires battery backup |
| Fewer restrictions because no compliance with local grid stipulations are necessary | You may also want a generator backup |
| Won't be impacted by power outages and problems with the local grid | Expensive to install because of the cost of the storage batteries |
| No electricity usage or bills from utility companies | Slower to recoup the value because excess energy is not sold back to the grid |
| Can power any building or area, not just those with existing grid connections | You're responsible for system maintenance |
| Has storage batteries to power your home at night or in poor conditions | Batteries lose efficiency as they age or with lack of maintenance |
| Many incentive programs offset the cost of installing power cell backups | Batteries eventually wear out and need replacement |
A stand-alone system is your best option if you have the budget and want to be entirely energy self-sufficient. If you have a property or a building on your property that isn't grid-connected, you’re in a good position to get a stand-alone system.
But if you’re on a tight budget, even with the available incentives, a fully off-grid system may be beyond your reach. In this case, a grid-tied system makes sense, as it involves less up-front costs and lets you recoup the value of the installation faster by paying you for the excess energy your panels generate.
Similarly, if you don't want the cost and effort associated with installing and maintaining a stand-alone system, a grid-tied system is the better choice.
In areas where storm damage or general power outages are common, a hybrid system is a good compromise. With a hybrid system, there's a small battery backup integrated into the setup so that if the local power grid fails, you can rely on the stored energy from the battery to power a few critical circuits in your home for a short time.
