On-Grid vs Off-Grid Solar: Key System Differences Between Them
Are you tired of skyrocketing electricity bills and ready to take control of your energy independence? Solar power might be the answer, but should you go on grid or off grid?

It's a big decision that impacts your wallet and your lifestyle. Recently, I've been researching on-grid vs off-grid systems. Here's what I'm learning.
On-Grid vs Off-Grid Solar Systems: Understanding the Key Differences
When we first moved off the grid, I had no idea about the differences between on-grid and off-grid solar systems. But after living with solar power for over a decade now, I've learned a thing or two.
The biggest difference comes down to whether or not your solar system is connected to the local utility grid. On-grid systems are tied to the power grid, while off-grid systems are entirely independent.
Our home in Canada's Northwest Territories is completely off grid because the electricity grid doesn't cover that region, which is the case with many remote locations and rural areas. For twelve years, we've learned about solar power systems, charge controllers, battery banks and how stored energy systems work.Â
However, our rural homestead in northern Ontario has a power meter and is indeed on the grid. We want to install a solar energy system there as well to reduce our energy bills.Â
In Ontario, it seems we have the option to go with a grid-tied system so we can sell our excess solar energy back to Hydro One, which operates the provincial public electricity grid. That's why I've been learning everything I can about how to find and install the right grid-connected system to meet our specific needs at the homestead.
As we learned with our first off grid property, solar panel systems can be expensive. So I want to make an informed decision to make the right choice before investing in a grid-tied system.
How On-Grid and Off-Grid Solar Systems Work
With an on-grid solar system, your panels generate electricity during the day that either powers your home directly or gets sent back to the grid. You can pull it from the grid if you need extra power, like at night.
Off-grid systems rely solely on solar panels and battery storage to meet all of your energy needs. There's no connection to the electric grid as a backup. That's why, at our off grid home, Â we depend on a Kubota diesel generator on cloudy days and through the winter months when we get minimal daylight.
In a nutshell, on-grid systems are tied to the utility power grid. Off-grid systems are standalone setups that rely on solar panels (or wind power or sometimes hydro-power) and battery storage to generate and store all the electricity needed.
Advantages and Disadvantages of On-Grid and Off-Grid Solar
The main perk of on-grid solar is having grid access as a safety net. If your panels don't generate enough energy, no worries - just pull some from the electrical grid. The downside is that you'll still get an electric bill, albeit a much smaller one.
True, full off-grid solutions mean total energy independence. And we love that.Â
However, it also requires a bigger investment in solar panels and batteries to cover 100% of your needs. You also need to be more mindful of your energy usage and have a backup plan for extended cloudy spells.
Comparing On-Grid vs Off-Grid Solar

Before taking the leap to off-grid living, we had to consider many factors - like how we'd access electricity on a cloudy day and through the short winter days. We realized, too, that we couldn't do much with the excess energy our system produced. Here's how on-grid and off-grid solar stack up.
Accessibility to Electricity
One of off-grid solar's biggest challenges is ensuring you have enough electricity to power your home 24/7. If your batteries run dry, you're stuck without power until the sun returns.
You can always pull electricity from the grid with an on-grid system if needed. This gives you a lot more flexibility and peace of mind, especially if you live in an area with unpredictable weather.
Handling Excess Energy
Most solar systems are designed to produce more electricity than you need during peak sunlight hours. With an off-grid setup, that excess energy gets stored in your battery bank for later use.
On-grid systems handle excess electricity differently. Any surplus power your panels produce gets sent back to the utility grid, and you receive credits on your electric bill - a process called net metering.
On-grid solar systems can send excess electricity back to the utility grid for credits, while off-grid setups store surplus energy in a battery bank.
Power Outages
When you live off the grid, power outages are a non-issue. Your solar system keeps chugging along, blissfully independent from any grid disruptions.
If you're on the grid, however, your solar system will actually shut down during a power outage as a safety precaution for utility workers. A backup battery system is the only way to keep the lights on.
In our case, after about nine years with two Lombardini diesel generators, two different solar panel setups, charge controllers, inverters, etc., we upgraded to a new solar system with a Tesla 2 powerwall.
Electricity Bills
One of the reasons we went off-grid was to eliminate our electricity bills entirely. Yet you should know that we still have to pay for diesel for our backup generators, propane for our boiler, oven, and dryer, and wood for our woodstove to heat our home in the Northwest Territories during the winter.
The Ontario property has a log cabin heated with two massive wood stoves. But with a properly sized solar or wind and battery setup, you can meet 100% of your energy needs without ever paying the utility company a dime.
On-grid solar can drastically reduce your electricity bills, but you'll likely still have some costs for grid connection fees or any power you pull from the grid. However, net metering can help offset these costs with the credits you earn from excess power production.
Factors to Consider When Choosing Between On-Grid and Off-Grid Solar

Choosing between an on-grid vs off-grid solar system is a big decision with a lot of factors to consider. It's not just about the equipment - you also need to think about your energy needs, budget, location, and how much maintenance you're willing to take on.
Assessing Energy Needs
The first step in going solar is figuring out how much electricity your home actually uses. This will help determine the size of the solar system you need, whether you're on-grid or off.
Off-grid systems generally require more panels and batteries to meet 100% of your energy needs, while on-grid setups can be smaller since you have the grid as a backup.
Accurately assessing your energy needs is crucial for sizing your solar system correctly, especially when going off-grid.
Budget Considerations
Off-grid solar systems typically have higher upfront costs due to the extra equipment needed, like a larger battery bank and backup generator. On-grid systems are usually less expensive initially but may have ongoing utility bills.
If you're serious about either a full off grid system or grid-tied systems, check with your state, provincial or territorial government for grants. We saved thousands of dollars on our Northwest Territories solar system through a territorial grant.
It's important to factor in long-term costs as well. While off-grid setups are a bigger investment upfront, they can pay for themselves over the long-term by eliminating electricity bills entirely.
Location and Climate
Where you live plays a big role in whether on-grid or off-grid solar makes more sense. Off-grid might be your only option if you're in a remote area far from power lines like we are up north.
Local climate also matters. Â If you get a lot of cloudy days, an off-grid system will need extra battery capacity to get you through those sunless stretches.
In our case, our home is above the 60th parallel, so we only get about four hours of sunlight in the winter. We run our generators daily during that time. But with on-grid systems have more flexibility since you can always fall back on the grid.
Maintenance Requirements
Off-grid solar systems have more complex components, which means more maintenance. You'll need to keep an eye on your battery banks, inverters, and backup generators to make sure everything's running smoothly.
On-grid systems are more straightforward, with fewer moving parts, so they generally require less upkeep. However, you'll still need to monitor your panels and keep them clean for optimal performance.
Hybrid Solar Systems
If you're torn between the flexibility of on-grid solar and the independence of off-grid, a hybrid system might be the perfect middle ground. Hybrid setups combine grid-tied solar with battery storage to give you the best of both worlds.
How Hybrid Solar Systems Work
In a hybrid system, your solar panels are connected to both your home and the utility grid, just like a standard on-grid setup. But you also have a battery bank to store excess energy for later use.
During the day, your panels power your home and charge your batteries. Any extra electricity gets sent to the grid for credits. At night or during a power outage, you can draw from your battery bank or the grid as needed.
Hybrid solar systems combine the benefits of on-grid and off-grid setups by using both grid-tied solar and battery storage.
Benefits of Hybrid Solar
Hybrid systems offer the reliability of grid-tied solar with the backup power of batteries. You get the peace of mind of knowing you have electricity even if the grid goes down, without having to rely 100% on your own solar production.
Hybrid setups also let you use net metering to offset your electricity costs, while still having some energy independence. It's a good compromise for those who want the best of both worlds.
Suitable Scenarios for Hybrid Systems
Hybrid solar is a sensible option for homes or businesses that want to maximize their energy independence while still having the grid as a safety net. It's especially useful in areas with unreliable power grids or frequent outages.
Hybrid systems are also a good fit for people who want to go mostly off-grid but still have some flexibility, like being able to sell excess power back to the utility company. It's a way to dip your toes into the off-grid lifestyle without fully committing.
On-Grid vs Off-grid Decisions
On-grid vs off-grid solar is more than a choice about how to power your home. It's a lifestyle decision that requires continuous monitoring of your home's power systems.
On grid systems offer convenience and savings, while off grid systems provide ultimate independence and reliability.
Consider your energy goals, budget, location, and maintenance preferences when deciding. And don't forget, hybrid systems offer a sweet middle ground for those who want the best of both worlds.
On Grid vs Off Grid FAQs
​We get a ton of questions about on-grid vs off-grid systems. Here are a few of the most common.
Which is better: off-grid or on-grid?
It depends on your needs. Off-grid suits remote areas without utility service, while on-grid works well if you're near the grid and want backup power.
What is the disadvantage of on-grid solar system?
An on-grid system won't work during a blackout because it's tied to the utility grid for safety reasons.
What is the difference between grid-on and off?
"Grid-on" means connected to the public electricity network, "off" means operating independently from it.
What is the difference between grid down and off-grid?
"Grid down" refers to temporary public grid failures; "off-grid" implies a permanent setup not relying on that infrastructure at all.
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