Understanding On Grid Solar Systems: How They Work, Their Costs, and Key Benefits

On Grid Solar System

As the demand for renewable energy rises globally, solar power has emerged as a leading option for both residential and commercial energy needs. The adoption of solar technology is growing rapidly due to its sustainability, cost-effectiveness, and ability to reduce dependency on conventional energy sources. Within the broad category of solar power systems, the on grid solar system stands out as one of the most common and widely adopted solutions. This article will explore what it is, how it works, the costs involved in setting it up in countries like Pakistan, and its benefits compared to other systems.

What is an On Grid Solar System?

An on grid solar system, also known as a Grid Tied or Grid Connected solar power plant, refers to a solar energy setup that is directly connected to the local utility power grid. Unlike an off grid system, which operates independently of the grid by storing energy in batteries, this solar system works in conjunction with the grid. This means that the electricity generated by the solar panels is used to power the building, and any excess energy is exported to the utility grid. When the solar system doesn’t generate enough electricity (e.g., at night or during cloudy weather), the building draws power from the grid.

How Does an On Grid Solar System Work?

The operation of a grid tied solar system involves a series of simple yet highly efficient steps. Below is an explanation of how the system works:

1. Solar Panels Capture Sunlight

The system consists of solar panels that are typically installed on rooftops or in open areas where they can receive maximum sunlight. These panels capture sunlight and convert it into direct current (DC) electricity using the photovoltaic effect.

2. Inverter Converts DC to AC

The electricity generated by the solar panels is in the form of direct current (DC), which is not compatible with most household appliances that run on alternating current (AC). The DC electricity flows into an on grid inverter, which converts it into AC electricity suitable for home or commercial use.

3. Electricity is Used or Fed into the Grid

The AC electricity generated by the inverter is either used to power the building’s electrical devices or, if there is excess energy, it is sent to the utility grid. Most on grid systems are equipped with a bidirectional electricity meter, which tracks both the energy drawn from the grid and the energy fed back into it. The excess power sent to the grid is credited to the user, often in the form of a reduction in their electricity bill, a process known as net metering.

4. Drawing Power from the Grid

When the solar system is not generating sufficient electricity, such as at night or during periods of low sunlight, the building will automatically draw electricity from the grid to meet its energy needs. This seamless integration between solar power and grid electricity ensures an uninterrupted power supply.

What is the Difference Between an On Grid and Off Grid Solar Systems?

The primary difference between these two solar systems is the presence or absence of a connection to the utility grid:

On Grid Solar System

  • Connected to the utility grid
  • Excess electricity is exported to the grid
  • No need for battery storage
  • Provides electricity during the day; relies on grid power at night or during low sunlight
  • Can earn credits or compensation for surplus energy through net metering
  • Lower initial cost compared to off grid systems

Off Grid Solar System

  • Operates independently from the utility grid
  • Requires battery storage to store excess energy
  • Offers complete energy independence.
  • Powers the building day and night with stored energy
  • Ideal for remote locations without grid access
  • Higher initial cost due to the need for batteries and backup generators
  • No utility bills, but requires careful energy management

Grid Tied Solar System and Batteries

An important feature of the on grid solar system is that it does not require batteries for energy storage. While batteries can store excess electricity for later use, they significantly increase the cost and maintenance requirements of a solar system. Most on grid solar setups rely entirely on the grid for energy backup, meaning that when solar power is insufficient, electricity is drawn from the grid.

This design makes grid tied systems cheaper and more attractive for those looking to reduce their electricity bills without making a hefty upfront investment in batteries. However, this also means that on grid systems without battery backup will not provide power during grid outages, which could be a disadvantage in areas with frequent power cuts.

Benefits of On Grid Solar Systems

There are several reasons why these solar systems have become so popular around the world. Below are some of the main advantages:

1. Cost Savings

One of the most compelling reasons for choosing a grid tied solar system is the potential for substantial savings on electricity bills. Since the system is connected to the grid, users can sell excess electricity back to the utility company through net metering. This reduces overall energy costs, and in some cases, customers can even receive payments if they generate more energy than they consume.

2. Low Installation and Maintenance Costs

On Grid solar systems are typically more affordable than off grid systems because they do not require batteries for energy storage. Batteries are among the most expensive components of a solar setup, so avoiding them can reduce both installation and ongoing maintenance costs.

3. Efficiency and Performance

These solar systems are highly efficient because they are directly connected to the utility grid. This means there is no need for energy storage, which can result in energy losses in other systems. Additionally, most modern systems come equipped with smart inverters that optimize energy usage and performance, ensuring that excess energy is fed back into the grid seamlessly.

4. Easy to Expand

If energy needs increase over time, an on grid solar system can be easily expanded by adding more solar panels. This flexibility is beneficial for homeowners and businesses that may wish to scale up their solar capacity in the future as their energy consumption grows.

5. Environmental Benefits

By installing a grid tied solar system, users reduce their reliance on fossil fuels, thereby decreasing their carbon footprint. Solar energy is a clean and renewable resource and switching to solar power is one of the most impactful ways to contribute to environmental sustainability.

The cost of installing an On Grid solar system varies based on the system size, location, quality of components, and installation services. Here are the approximate prices for different system sizes in Pakistan:

SpecificationAvg. Min Price (PKR)Avg. Max Price (PKR)
3 Kilo Watt300,000500,000
5 Kilo Watt500,000700,000
10 Kilo Watt1,000,0001,500,000
Costs of On Grid Solar Systems in Pakistan

The inverter is a crucial component of any solar system. The cost of a Grid Tied inverter in Pakistan varies based on its capacity and brand. For a 5 KW inverter, the price typically falls between PKR 100,000 to 150,000, while larger inverters for higher-capacity systems can cost up to PKR 300,000 or more.

Final Verdict:

An On Grid solar system offers an excellent solution for individuals and businesses looking to reduce their electricity bills and carbon footprint without the need for expensive battery storage. These systems are cost-effective, low-maintenance, and easy to expand, making them a popular choice in countries like Pakistan, where energy costs are rising.

The various capacities available such as 3 KW, 5 KW, and 10 KW allow users to choose a system that meets their specific energy needs and budget. With the increasing adoption of solar technology, On Grid solar systems present a sustainable and financially viable path to energy independence.


No, on grid solar systems do not require batteries for energy storage. They rely on the utility grid for backup power when solar generation is insufficient. However, this means they will not provide power during grid outages.

Some key benefits include significant cost savings on electricity bills, low installation and maintenance costs, high efficiency, and the ability to scale the system by adding more panels as energy needs grow. It also reduces reliance on fossil fuels, promoting environmental sustainability.

Yes, on grid solar systems are flexible and can be easily expanded by adding more solar panels to accommodate increasing energy needs.

While on-grid systems are suitable for most areas, they may not be ideal for locations with frequent power outages unless paired with an alternative backup system, such as a generator.

On grid solar systems significantly reduce dependence on fossil fuels, thus lowering greenhouse gas emissions and contributing to environmental sustainability. They harness clean, renewable energy, making them an effective solution for reducing your carbon footprint.

Net metering allows users to receive credits for the excess electricity they feed back into the grid. This can lead to reduced electricity bills, and in some cases, users can even earn payments if they generate more energy than they consume.


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