Grid-tied solar electric systems generate electricity for your home or business and route the excess power into the electric utility grid for compensation from the utility company.
Grid-tied, on-grid, utility-interactive, grid intertie and grid backfeeding are all terms used to describe the same concept – a solar system that is connected to the utility power grid.
Advantages of Grid-Tied Systems
1. Save more money with net metering
A grid-connection will allow you to save more money with solar panels through better efficiency rates, net metering, plus lower equipment and installation costs:
Batteries, and other stand-alone equipment, are required for a fully functional off-grid solar system and add to costs as well as maintenance. Grid-tied solar systems are therefore generally cheaper and simpler to install.
Your solar panels will often generate more electricity than what you are capable of consuming. With net metering, homeowners can put this excess electricity onto the utility grid instead of storing it themselves with batteries.
Net metering (or feed-in tariff schemes in some countries) play an important role in how solar power is incentivized. Without it, residential solar systems would be much less feasible from a financial point of view.
Many utility companies are committed to buying electricity from homeowners at the same rate as they sell it themselves.