On Grid Solar Systems
Solar panels convert solar energy or sunlight into direct current (DC) power by the photovoltaic (PV) effect.
All Solar PV power systems work on this same basic principle.
The DC power thus generated may be stored in a battery or needs to be converted by a solar inverter into an alternating current (AC) power source, which is then used to run various appliances or may be fed into the electricity grid for credits.
The three main types of Solar PV power systems are :
On-grid - also known as a grid-tied or grid-connected
Off-grid - also known as a stand-alone
Hybrid - grid-connected system with battery storage
On-Grid Solar Systems :
On-grid solar systems generate power using a solar PV power system.
These systems convert sunlight to energy, some of which may be consumed, and the excess power that is generated is sent to the utility grid.
The owner of this system receives compensation for the extra power that was fed to the grid.
These systems work in collaboration with the power grid. In the case when there is not enough sunlight to meet your business/owner's needs, the system runs on the power supplied by the grid.
Businesses can rely on on-grid solar systems to meet their daily requirements, as well as earn income from the excess power generated. On bright sunny days, buildings can generate enough solar energy to power appliances, lights, water heating systems, etc.
On-grid solar systems are very cost-effective and easy to install.
Businesses can recoup the cost of their investment by offsetting electricity bills in just 3-8 years. If a private, commercial or industrial building sets up a solar PV rooftop system it will be eligible to avail of an 'Accelerated Depreciation Benefit'.
Power Outages with On-Grid Systems :
By connecting to the grid, you get access to electricity whenever you need it. However, you're also subject to some rules. If you have a grid-tied solar system and the grid goes down, you will not have electricity, unless you opt for a grid-tied solar system with battery backup.
Why is this? The shutdown of solar systems when the grid goes down is required by the Underwriters Laboratories (UL 1741). This is for the safety of utility workers who are fixing the power lines.
Electricity Bills with On-Grid System :
If you opt for a grid-tied system, you could still see a few minimal charges on your electricity bill, even if your solar system provides 100% of your electricity.
One type of charge you may continue to see is the service fee or delivery charge. This is the cost levied on customers for connecting their homes or business to the grid.