What is a grid-tied solar system, its Price, Benefits, and Types, with Subsidy

A grid-tied solar system, also known as a grid-connected or on-grid solar system, is a solar power generation system that is connected to the public electricity grid. This system harnesses sunlight through solar panels, which convert the sunlight into direct current (DC) electricity. An inverter then converts this DC electricity into alternating current (AC) electricity, which can be used to power home appliances. When the solar panels produce more electricity than is needed, the excess energy is fed back into the grid, allowing homeowners to earn credits or compensation through net metering.

What is a solar panel?

A solar panel is a device that converts sunlight into electricity. Solar panels are composed of many solar cells made of semiconductor materials, usually silicon. When sunlight hits these cells, it knocks electrons loose, creating an electric current. This process is known as the photovoltaic effect.

Solar panels are commonly used in residential, commercial, and industrial applications to generate clean, renewable energy. They can be installed on rooftops, mounted on the ground, or integrated into building materials. Solar panels are connected to form a solar array, which can generate significant amounts of electricity.

Types of grid-tied solar system

Grid-tied solar systems come in various configurations to suit different needs and preferences. Here are the main types:

Standard Grid-Tied Solar System: This is the most common type, where solar panels are connected directly to the grid via an inverter. Excess energy produced is fed back into the grid, and energy is drawn from the grid when needed.

Grid-Tied Solar System with Battery Backup: This type includes batteries to store excess solar energy. The stored energy can be used during power outages or when solar production is low.

Microinverter-Based Grid-Tied System: Instead of a single inverter for all panels, this system uses microinverters attached to each solar panel. Microinverters optimize the output of individual solar panels, improving the overall efficiency, especially in areas with shading or varying sunlight conditions.

Hybrid Grid-Tied Solar System: Combining features of both grid-tied and off-grid systems, hybrid systems can operate independently from the grid if needed.

String Inverter-Based Grid-Tied System: This system uses a single or multiple string inverters to convert the DC electricity generated by solar panels into AC electricity.

Advantage of grid-tied solar system

Grid-tied solar systems offer several advantages, making them a popular choice for both residential and commercial applications. Here are some key benefits:

Cost Savings: Grid-tied systems can significantly reduce electricity bills by offsetting the amount of power needed from the utility grid. Excess energy produced can be sold back to the grid through net metering, further lowering costs.

Efficiency: These systems tend to be more efficient than off-grid systems because they do not require batteries, which can lose energy during storage and conversion processes. Direct use of generated power is more efficient.

Lower Initial Investment: Without the need for expensive battery storage, grid-tied systems generally have a lower upfront cost compared to off-grid systems.

Reliable Power Supply: By remaining connected to the grid, users can still access electricity when solar power generation is low, such as during nighttime or cloudy days, ensuring a continuous power supply.

Environmental Benefits: Using solar power reduces reliance on fossil fuels, thereby decreasing greenhouse gas emissions and contributing to a cleaner environment.

Incentives and Rebates: Many governments offer financial incentives, tax credits, and rebates for installing grid-tied solar systems, making them even more cost-effective.

Increased Property Value: Homes and buildings with solar installations are often valued higher and sell faster than those without, due to the long-term energy cost savings they provide.

Energy Independence: Although grid-tied systems rely on the grid, they reduce overall dependency on traditional energy sources and utility companies, fostering greater energy independence.

Scalability: Grid-tied solar systems can be easily expanded by adding more panels as energy needs grow, allowing for flexibility in future energy planning.

Low Maintenance: These systems have fewer components than off-grid systems (like batteries), resulting in lower maintenance and replacement costs over time.

Subsidies and Government Support

The Indian government offers various incentives to promote the adoption of solar energy:

1. Subsidies: The Ministry of New and Renewable Energy (MNRE) provides capital subsidies for residential solar installations. These subsidies can cover up to 40% of the cost for systems up to 3 kW and 20% for systems above 3 kW and up to 10 kW.
2. Net Metering Policies: State governments have implemented net metering policies to facilitate the sale of excess solar power back to the grid.
3. Tax Benefits: Businesses can benefit from accelerated depreciation, which allows them to depreciate solar assets at a higher rate, providing significant tax savings.
4. Soft Loans: Various financial institutions offer loans at reduced interest rates for solar installations, making it easier for consumers to invest in solar power.

Price of grid-tied solar system

The price of a grid-tied solar system in India varies based on several factors, including the system size, quality of components, and installation location. The cost of an on-grid solar system per kilowatt typically ranges between INR 50,000 to INR 60,000. This price includes solar panels, inverters, mounting structures, wiring, and installation charges.

For a typical household installation of a 3 kW Solar system, the total cost would be around INR 1.4 lakh to INR 1.8 lakh. Larger systems, such as those for commercial or industrial purposes, will have a higher upfront cost but can benefit from economies of scale, potentially reducing the per-kW price.

Conclusion — Grid-tied solar systems represent a significant advancement in renewable energy technology, offering both environmental and economic benefits. By seamlessly integrating with the existing power grid, these systems provide a reliable and efficient way to harness solar energy without the need for extensive battery storage. They help reduce electricity bills, contribute to energy independence, and decrease reliance on fossil fuels, thereby lowering carbon footprints.