How Does an On-Grid Solar System Work?

Recently, there has 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, necessary electrical equipment, and installation. They harness the power of sunlight to generate electricity while remaining connected to the traditional power grid.    

In this article, we’ll explore the intricacies of an on-grid solar system, discuss how it works, and discuss some key considerations 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 starter article for you.   

What is an On-Grid Solar System? 

An on-grid solar system, also known as a grid-tied system, is a power system that harnesses solar energy to provide electricity. Unlike an off-grid solar system, it operates in conjunction with a traditional power grid. This means that the electricity generated by the solar panels can be used to power your appliances, and others can use any excess electricity that’s fed back to the grid. Conversely, if the electricity generated by the solar panels is not enough for your appliances, the grid can supply you with electricity. 

Companies installing these systems into homes and businesses usually offer on-grid solar packages, but there are also options to do it yourself. These solar packages normally comprise of solar panels, an inverter, metering equipment, a connection to the grid, and optionally, a battery storage system.  

In the following section, we’ll discuss each of these items to understand their purpose in an on-grid system.  

Components of an On-Grid Solar System 

On-grid solar systems typically consist of several components: 

Solar Panels 

These are the primary components of the system. They capture sunlight and convert it into electricity, which can then be used to power 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 the solar panels' direct current (DC) electricity into alternating (AC) electricity. In on-grid solar systems, inverters are essential for synchronising the electricity produced by the solar panels with the grid.   

Grid Connection 

An on-grid solar system is connected to the local electricity grid. This connection allows surplus electricity to be exported to the grid when it exceeds the household's demand and allows to draw electricity from the grid when there is insufficient solar production.   

Net Meter 

The utility company 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. It allows for accurate billing based on the net electricity consumed or exported.    

Monitoring System 

Some on-grid systems include monitoring systems that allow homeowners to track the performance of their solar panels, including electricity production and system health.  

Electrical Wiring and Conduit 

Proper wiring and conduit are necessary to connect the solar panels and other 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.  

These components work together to harness solar energy and integrate it seamlessly with the existing electrical grid infrastructure. 

Why do I Need to Know About This? 

If you’re planning to install one in your home or office, having a good grasp on the workings of an on-grid solar system is crucial as it enables you to effectively manage your energy usage and optimise your electricity consumption patterns. This can help you in choosing the right solar electricity package for your specific needs and in making informed decisions about when to use electricity from the grid and when to rely on solar power. 

Now let’s explore how an on-grid system works. 

How Does an On-Grid Solar System Work?  

Do on-grid solar power systems only work during the daytime? How do I know I’m saving money on electricity if I use solar power? This section will cover these important questions and more.    

How does an on-grid solar system work?  

An on-grid solar system operates during daytime by harnessing sunlight to produce electricity into the building it’s connected using solar panels.  

How do solar panels produce electricity? 

Solar panels are installed on the roof or in an open area where they can receive direct sunlight. These panels contain photovoltaic cells that convert sunlight into direct current (DC) electricity.  

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. This enables you to use the electricity on appliances and devices in homes and businesses that use AC power. 

Do on-grid solar systems work only during daytime?  

While they provide AC power from sunlight, this doesn’t mean that they can’t be used at nighttime. This is where a battery backup system can help immensely. In an on-grid setup with a battery bank, you can store excess solar energy during the day and draw from it instead of from the grid for use during periods of low sunlight, power outages, or at night, improving your energy independence.  

What happens to on-grid solar systems without a battery system at night? 

During daytime, solar panels generate electricity from sunlight, converting it into electricity. Any excess electricity not immediately consumed by the property is fed back into the grid, often entitling owners to credits or compensation through net metering.  

At night, or during periods of low sunlight, electricity is drawn from the grid to meet the property’s energy needs. Metering equipment tracks electricity flow, allowing for accurate billing and monitoring of energy usage.  

Basically, when the sun is shining and solar panels produce electricity, an on-grid solar system first powers the electrical needs of the building where it’s installed. If the electricity generated exceeds the immediate demand of the building, the excess electricity is fed back into the grid.  

How can usage be monitored in an on-grid solar system? 

In many regions, on-grid solar systems are equipped with a net meter. This meter tracks the amount of electricity being consumed from the grid and the amount of excess electricity being exported to the grid. When the solar panels generate more electricity than the building uses, the surplus is exported to the grid and the net meter records this excess, effectively running backward. Conversely, when the building consumes more electricity than what the solar panels produce (such as at night or during cloudy days), it draws power from the grid, and the net meter records this usage. 

How does electricity from solar panels flow through the grid? 

Since on-grid solar systems are connected to the grid, they can draw electricity from it when solar power generation cannot meet the building’s needs. Likewise, they can export excess electricity to the grid when production exceeds demand. This two-way flow of electricity enables a seamless integration of solar power with the existing grid infrastructure.  

By generating their own electricity from sunlight, on-grid solar system users can reduce their dependence on utility-provided electricity in the daytime. This can lead to savings on electricity bills, especially in areas where net metering policies allow for compensation or credits for excess electricity exported to the grid. 

Considerations for Installation 

If you are planning to install an on-grid solar system for your home or business, here are several factors that you should consider:  

Proper Sizing 

Before installing an on-grid solar system into your property, you must first be aware of your property’s energy demands to determine the proper size of your solar system.  

Roof Orientation, Shading, and Available Space 

Since on-grid solar systems depend on sunlight, knowing peak daylight hours and locations within your property is essential. This enables you to place solar panels strategically so they can get the most sunlight for the longest possible time during the day.    

Local Regulations 

Policies differ from region to region, so homeowners and businesses planning on going solar should also familiarise themselves with local regulations and utility policies that govern solar installations and explore financial incentives and rebates available for solar projects. 

Ready to Go Solar? 

In this article, we discussed how an on-grid solar system operates and the considerations for installing one for your home or business. Aside from personal benefits such as convenience, energy independence, and financial incentives, going solar also has plenty of notable advantages, such as a positive environmental impact and improved grid stability.   

Overall, it’s an incredible investment into your future–one that’s brighter powered by solar. If you’re ready to install an on-grid system for your home or business, explore our many offerings here at VoltX Energy and find the right solar electricity package that suits your needs.