An on-grid solar system is connected to the utility power grid and requires the grid to be running for the solar plant to produce energy.
Pros of an ON-GRID Solar System:
· On-Grid systems are a less expensive option, as it doesn’t require batteries and other equipment.
· The On-Grid system is ideal for those who don’t have enough roof space or financing to install a solar system to cover 100% of their energy usage. Still Electricity can be consumed from the grid if needed.
· Net Metering allows the electricity generated by a solar system to offset the electricity used from the grid during the night or cloudy days.
· The grid becomes your cost-effective, reliable storage solution and very less maintenance as compared with off-grid.
· Billing Process:
In most states of India, Net-metering / Net Billing or Net feed-in / Gross-Metering is followed by the Electricity Board.
· Net Metering:
The solar energy exported to the Grid from an on-grid solar PV system is deducted from the energy imported from the grid in units to arrive at the net imported or exported energy. The net imported or exported energy is billed or credited or carried over to the next billing period. This process shall continue until the end of the settlement period. At the end of the settlement period, credit i.e., the net units of surplus generation available if any shall get lapsed.
· Net billing or Net feed-in:
The monetary value of the imported energy is debited based on the applicable retail tariff determined by the Electricity Board from time to time. Likewise, the exported energy is credited based on the feed-in tariff by EB. The monetary value of the exported energy is deducted from the monetary value of imported energy to arrive at the net amount to be billed. If the cumulative credit amount exceeds the debit amount during any billing cycle, the net credit amount is carried over to the next billing cycle. At the end of a 12-month settlement period i.e., 31st March, the net credit balance (if any) shall be carried-over to the next settlement period.
Cons of ON-GRID Solar System:
· If the Utility grid goes down the solar system will shut off, leaving you without power. This is required to prevent energy from back feeding into the grid to keep utility workers safe.
· On-grid system will automatically shut off when the grid goes down, and will also automatically turn back on when power is restored.
· You’re not completely independent from the grid.