What Is The Difference Between On-Grid And Off-Grid?

With climate change becoming an increasingly pressing concern, a lot of governments are encouraging their citizens and industries to adopt solar power as their main source of energy. A lot of companies also gradually discover that shifting to solar power systems is a more economical way out because it saves them the heavy electrical costs that come with running a factory. There are plenty of options to choose from – 3 phase solar inverters to the different variants. However, while switching to solar power systems is a good thing, a lot of first-time users get a little confused between on-grid and off-grid means of solar power generators. This article will seek to shed some light on the differences and advantages of on-grid and off-grid solar inverters,as you will find on Solar NextGen. But if you still feel too confused by the end of this article, you can also opt for a hybrid solar inverter.

What Are On-Grid Solar Power Systems?

On-grid solar power systems are directly connected to the utility power grid. The excess power generated by the solar power system is sent to the grid so that the customer is reimbursed for the power that was fed back. Since these systems work along with the power grid, you can use the systems even on the days when the sunlight in your area is low. 

Businesses and industries can use on-grid systems to meet their daily electricity requirements. When the day is bright, the system can generate enough electricity to power appliances, machinery and everything in between. 

Advantages Of On-Grid Power Systems

  • When it comes to solar inverter price, on-grid power systems are cost-effective and very easy to install.
  • Business can reimburse their installation charges by offsetting their electricity bills of about 3-5 years.
  • Residents and owners can find a passive source of income for the extra energy generated by the system. 

What Are Off-Grid Solar Power Systems?

As you can guess from the name itself, off-grid power systems work unconnected to the power grid. But, they have batteries that can store the excess energy generated by the system. The system stores an adequate amount of solar energy during the day and uses the same stored energy to function during the night. The entire system is self-sufficient and can provide critical loads in places that do not have a power grid attached to them. But they require a lot of extra installations that are both expensive and complicated to work with. For businesses that can survive without electrical output for short periods, the off-grid solar inverter is totally worth it.


  • These systems do not need a grid to be functional. 
  • They can store enough power that can be used in the absence of sunlight. 


Rural areas that do not have any electricity can benefit from using off-grid solar power systems. Also, places that face the problem of frequent power cuts can benefit from using this type of system. You can learn more about these types of best solar inverters on Solar NextGen.