How Does an On-Grid Solar System Work? How Does an On-Grid Solar System Work?
Guide 5 Min Read 08 May 2024

How Does an On-Grid Solar System Work?

There’s been a surge in solar energy adoption. In fact, on-grid solar packages have increasingly become a popular choice in Australia for homeowners and businesses alike. These solar packages usually comprise solar panels, an inverter, the necessary electrical equipment, and installation. Together, they harness the power of sunlight to generate electricity while remaining connected to the traditional power grid.

There’s been a surge in solar energy adoption. In fact, on-grid solar packages have increasingly become a popular choice in Australia for homeowners and businesses alike. These solar packages usually comprise solar panels, an inverter, the necessary electrical equipment, and installation. Together, they harness the power of sunlight to generate electricity while remaining connected to the traditional power grid.

In this article, we’ll explain exactly how a grid-tied solar system works, then work through its components and what to consider before installing one. If you’ve been wondering how to choose the right solar electricity package for your home or business, this is the right starting point.

What is an On-Grid Solar System?

An on-grid solar system is a solar power setup that generates electricity from sunlight while staying connected to the traditional electricity grid. It’s the most common type of home solar system in Australia, largely because it doesn’t need expensive battery storage to be useful—the grid itself acts as your backup.

You’ll see the same system described by a few different names. “Grid-tied,” “grid-tie,” “grid feed,” and “grid-connected” all refer to the same thing: solar that works hand-in-hand with the grid. This is what distinguishes it from an off-grid system, which runs completely independently of the grid and relies entirely on batteries.

The defining feature is a two-way relationship with the grid. Electricity generated by your solar panels powers your appliances directly, and any excess is fed back to the grid for others to use. Conversely, when your panels aren’t generating enough to meet demand, the grid fills the gap. You draw from it and export to it automatically, without ever having to switch between the two.

Companies installing these systems usually offer complete on-grid solar packages, but there are also options to do it yourself. These packages typically comprise solar panels, an inverter, metering equipment, a grid connection, and optionally, battery storage.

How Does an On-Grid Solar System Work?

At its core, a grid feed solar system works in four steps: generate, convert, use, and exchange. First, it generates energy during the day by harnessing sunlight. It gets converted into usable energy for the building it’s connected to. Some of the surplus power get sent to the grid.

How do solar panels produce electricity?

Solar panels are installed on the roof or in an open area where they can receive direct sunlight. Once solar panels have converted the sunlight into DC electricity, it is then sent to an inverter, which converts DC electricity into alternating current (AC) electricity.

Getting 24/7 Independence with a Battery

Do on-grid solar systems work only during the day? While they provide power from sunlight, it doesn’t mean they can’t be used at night. In an on-grid setup with a battery bank, you can store excess solar energy generated during the day and draw on it after dark, during a power outage, or on low-sunlight days. This reduces how much you depend on the grid outside daylight hours.

For a closer look at what this setup involves, see our guide on how home batteries are transforming energy consumption and independence.

Key Components of a Grid-Tied Solar System

On-grid solar systems typically consist of several components that work together to harness solar energy and integrate it seamlessly with the existing electrical grid infrastructure.

Solar Panels

These are the primary components of the system. They capture sunlight and convert it into electricity, which powers different kinds of appliances depending on their wattage requirements.

Mounting Structure

Solar panels need to be mounted securely on a structure, such as a roof, to ensure proper orientation and angle for maximum sunlight exposure.

Inverter

This device converts your panels’ DC electricity into usable AC electricity. In on-grid solar systems, this is essential for synchronising your system’s output with the grid.

Grid Connection

An on-grid solar system is connected to the local electricity grid. This allows surplus electricity to be exported when it exceeds the household’s demand and allows you to draw electricity when solar production falls short.

Net Meter

Your utility provider installs a net meter to measure the electricity flowing in both directions, from the grid to the household and from the household to the grid. This ensures accurate billing based on net consumption.

Monitoring System

Many on-grid systems include a monitoring system so you can track performance, including electricity production and overall system health.

Electrical Wiring and Conduit

Proper wiring and conduit are necessary to connect all the components safely and efficiently.

Battery

Some solar packages include a battery to store any excess solar energy for later use. This can help increase your energy efficiency and independence.

Why Understanding This Matters

If you’re planning to install a grid feed solar system in your home or office, having a good grasp of how it works is genuinely useful. It helps you manage your energy usage, optimise your consumption patterns, and choose the right solar package for your specific needs. It also puts you in a better position to decide when to draw on the grid and when to rely on your own solar power.

Considerations Before Installation

If you’re planning to install an on-grid solar system for your home or business, here are a few factors worth thinking through:

Proper Sizing

Before installing, get a clear picture of your property’s energy demands so you can determine the right size system for your needs.

Roof Orientation, Shading, and Available Space

Since these systems depend on sunlight, understanding your property’s peak daylight hours and best-exposed areas helps you place panels where they’ll capture the most sun for the longest stretch of the day.

Local Regulations

Policies vary by region, so it’s worth familiarising yourself with local regulations and utility policies governing solar installations, as well as any financial incentives or rebates available for solar projects in your area.

Ready to Go Solar?

In this article, we discussed how an on-grid solar system works, its key components, and what to consider before installing one. Beyond the personal benefits (convenience, energy independence, and financial incentives), going solar also has real environmental upside and can contribute to improved grid stability.

It’s genuinely a solid investment in your future. If you’re ready to install a grid-tied system for your home or business, browse VoltX Energy’s range of solar batteries to find the setup that suits your needs.

Written by

VoltX Energy

Australia's solar battery specialists since 2012, VoltX Energy is one of Australia's leading solar battery retailers and installers, helping thousands of homeowners achieve smarter, more affordable energy independence.

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