An on-grid solar system is much more attractive than an off-grid system. In an on-grid solar system, the solar power is produced only when the grid is available. The power supply gets completely cut-off in case of the grid outage. Hence, one needs to depend on back-ups such as DG sets for emergency power supply. The power shut down happens, mostly in case of safety and technical reasons.

This system works in two-ways — the supply of electricity can flow from the grid to which it is connected to the user’s home and from the user’s home to the grid. This feature makes the on-grid solar system affordable and highly useful. The solar panels, installed on the user’s home are ‘tied’ to the grid. The solar panels convert sunlight into electric energy, which is Direct Current (DC). This current is then sent to an inverter. The solar inverter then converts the DC to Alternating Current (AC), thus making it power the electrical items. This electricity is then routed to the grid where it is supplied for day to day use. The grid tied inverter additionally regulates the amount and voltage of electricity fed to the household since all the power generated is mostly much more than a home needs or can handle.

An important feature is the net meter. It is a device that records the energy supplied to the grid and the energy consumed. At the end of each month, the outstanding is recorded and the consumer is provided with a bill. This ‘converted’ power supply is then used by homes through the main electricity distribution panel.