When exploring the Australian solar system market, you will find both grid-connected and off-grid solar systems. So, what is the difference between the two, and which one is the right choice for you?
Here is everything you need to know!
What is an off-grid solar system?
An off-grid system is not connected to the electricity grid, in contrast to a grid-connected system – which is. The latter is connected to your power company’s network and is by far the most popular option.
If your system were to malfunction, or if it is dark outside, you will be able to use electricity from the grid. In addition to this, a grid-connected system will let you transfer surplus energy back to the grid, and in return, you will receive a feed-in tariff (payment) from the power provider.
As an off-grid solar system is a stand-alone system with no grid connection, you will not have this backup power. Instead, you can store surplus energy in a battery, and use it during night or poor sunlight.
How does off-grid solar work?
An off-grid solar system works by producing electricity through solar panels. When the sunlight hits the panels, the energy from the sunlight will be absorbed by the photovoltaic cells in the solar panel, and an electrical charge is created.
This electricity is then used to charge the solar battery that is connected. All surplus power will be used to charge the battery, and this can be used whenever needed.
The system will also have a converter that is converting direct current (DC) power into alternating current (AC) that your home appliances can use.
Considerations before you invest in off-grid solar
There are both advantages and disadvantages related to off-grid solar panel systems. Before investing in a system like this, you should know about both the positive and negative aspects. Let’s take a closer look!
Advantages
One of the greatest advantages of having an off-grid solar system is the fact that you will not rely on grid energy. If the electricity costs are high, you will stay unaffected as you have your own “power station” on your rooftop.
When you are independent of the grid, you will not receive electrical bills as the system produces all of your electricity. If you seek a self-sustaining lifestyle, an off-grid solar system is a great and sustainable choice.
The energy produced by your solar system is clean. It should be able to provide you with energy for around 25 years. Within this period, you might expect to reduce your carbon footprint by nearly 250 tonnes of CO2.
With an off-grid solar system, you can produce your own electricity “anywhere”. For people who live in remote places without grid connection, a system like this can be a great investment.
Disadvantages
There are also disadvantages related to off-grid systems. The high initial cost is one issue. An off-grid solar panel system that produces 18 kWh a day, will typically cost you between $25,000 and $45,000.
By comparison, a typical 6.6 kW grid-connected system will usually cost somewhere between $6,000 and $8,500. The significant price difference is mainly because of the battery package you will need when installing an off-grid system.
The battery price is high, and you will usually have to replace it after ten years. Also, the initial setup of an off-grid system is more advanced. In most cases, you will also need more maintenance work.
Another disadvantage is the fact that you rely 100% on your solar system for electricity. If the system were to fail or does not produce enough electricity, you do not have grid power as a backup.
Is an off-grid solar system right for you?
A grid-connected solar panel system is the best system to install in most cases. But if it is not possible or very expensive to connect to the electricity grid, it might still be the right solution for you.
If the cost related to grid connection is lower than $25,000, it is usually better to choose a grid-connected system. That way you will be able to use power from the grid and earn a feed-in tariff from excess power.
Find an off-grid solar system installer
If you are planning to install an off-grid solar system, it is important to choose a Clean Energy Council (CEC) accredited installer. Consult the solar products listed on the CEC’s list of approved systems. That way you will be able to get your government rebate.
Consider the advantages and disadvantages of an off-grid solar system, and decide whether it is the right system for you – or not.