Grid Tied Solar System
When the grid is running properly, your home or business will use power generated from your solar panels or pull electricity from the grid. Any excess power generated over and above your needs go back to your utility company for credits on your power bill in areas where net-metering is available.
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.
Additional perks of being grid-tied include access to backup power from the utility grid (in case your solar system stop generating electricity for one reason or another). At the same time you help to mitigate the utility company`s peak load. As a result, the efficiency of our electrical system as a whole goes up.