On Grid Solar System and Win-Win Relationship

The quest for sustainable energy solutions has gained tremendous momentum as the world grapples with the pressing issues of climate change and dwindling fossil fuel reserves. One of the most promising and widely adopted solutions is solar power, particularly on-grid solar systems. These systems, integrated into the existing electricity grid, offer numerous benefits to both individual users and the broader community, fostering a win-win relationship.

What is the on grid solar system?

An on grid solar system, also known as a grid-tied or grid-connected solar system, is a type of solar power system that is directly connected to the public electricity grid. It comprises solar panels, grid on inverter, and necessary electrical components. The primary function of an on grid solar system is to generate electricity from sunlight and supply it directly to the household or business, with any excess electricity fed back into the grid. It's a solar system that is connected and synchronized with the power grid. So, the electrical load will be fed from both sources which share to each other in feeding it.

In cloudy days or at night where the solar system generation is low or even is not exist, the electrical load takes its power requirements from the power grid. And in sunny days where solar generation exceeds load power requirement, the load take all its power requirement form the solar system and surplus solar generated electricity will go to the power grid to be used elsewhere.

Generally, both sources share each other, so at some other times the load will take its power requirement from both.

The Electricity Companies in most of countries like electricity generation that way, and constitute it as distributed generation. To extent that they pay money for this extra solar generation (AC pure sine wave electricity) injected into power grid to the customer / facility owns the on-grid solar system.

On grid solar system

Benefits of on grid solar system:

For Individual Users

  • Cost Savings. By generating their own electricity, users can significantly reduce their electricity bills. The initial investment in solar panels and installation is often offset by the savings on energy costs over time. Additionally, many regions offer incentives, rebates, and tax credits to encourage solar adoption, further reducing the financial burden.
  • Energy Security. On grid systems provide a reliable source of energy. During the day, when solar panels are most effective, they can supply a substantial portion of a household's electricity needs. At night or during cloudy periods, the grid serves as a backup, ensuring a continuous power supply.
  • Environmental Impact. Solar energy is a clean, renewable resource that significantly reduces carbon footprints. By using solar power, individuals contribute to the reduction of greenhouse gas emissions, playing a part in combating climate change.

For the Community and the Grid

  • Reduced Strain on the Grid. During peak sunlight hours, solar panels can produce more electricity than needed by the household, feeding the surplus back into the grid. This helps reduce the strain on the grid, especially during peak demand times, enhancing its stability and efficiency.
  • Economic Benefits. The proliferation of on-grid solar systems drives job creation in the solar industry, from manufacturing and installation to maintenance and sales. This industry growth contributes to local economies and provides employment opportunities.
  • Energy Independence and Security. On grid solar systems contribute to a more decentralized energy system. By reducing reliance on centralized power plants, communities can enhance their energy security and resilience against power outages or disruptions.

How the electricity company pays for solar on grid generated AC electricity?

In order to encourage customers to install on grid solar systems, Electricity Companies put 2 ways to buy electricity from them, the first one called Net metering and the other called Feed in tariff.

In Net metering policy, Electricity Company pays for the net electricity injected into the power grid. For example, suppose that the customer on grid solar system generates 1000kWh in a certain month while its premises consume 700kWh, this means he already returned 300kwh to the power grid, and hence the Electricity Company will pay for 300kwh amount. In other months, the customer on grid solar system may generate 1000kwh but its premises consume 1200kwh, then the customer will pay to the electricity company for 200kWh extra consumption.

In feed in tariff policy, there will be a contact between the Electricity Company and the customer where the customer will be paid for all electricity generated from his solar on grid system and injected into the power grid, referring to the same example, the electricity company will pay for 1000 kwh customer monthly generation according to the contract established between them, and of course the customer will pay for his consumption but individually away from the contract.

Its win-win business relationship between the customer and the Electricity Company, while the customer will save electricity bills and get profits from surplus electricity generated from the solar system, Electricity Company will have reliable power source with high generation capability and be efficiently able to feed other new customers.

On grid solar systems play a crucial role in enhancing the stability and resilience of the electricity grid. By feeding excess electricity back into the grid, they help balance supply and demand, especially during peak usage periods. And the environmental benefits of on grid solar systems extend beyond individual households. By reducing reliance on fossil fuels, these systems contribute to a significant reduction in greenhouse gas emissions, air pollution, and water usage. The collective impact of widespread solar adoption can lead to cleaner air, healthier ecosystems, and a more sustainable future.

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