With climate change and rising energy costs, more homeowners are embracing solar power to save money and lower their carbon footprint. Installing solar panels creates a choice between two options for utilising all that free sunshine: connecting to the grid or going off-grid with batteries.

Grid-tied systems feed excess solar energy back to the utility company, offsetting electric bills. Battery storage – or an off-grid solar system – provides true energy independence by retaining solar energy in batteries for use anytime. With the grid, you avoid big upfront battery costs but remain dependent on unsteady utility pricing and power.

The right solar power solution blends these approaches to maximise sunlight usage and financial benefit. Hybrid systems with partial battery storage and grid connection give homeowners the best of both worlds however, this isn’t always a suitable option. This blog explores the pros and cons of grid versus solar batteries to clarify your choice. 

You’ll learn how to create a personalised solar, storage and grid combination that fits your home’s unique needs and priorities – whether that’s energy freedom from the grid or simply saving money through solar offsets. With the power of the sun, a customised solar system allows you to take control of your energy costs and future.

On-Grid Vs Off-Grid Solar Systems Explained

Off-Grid System

Off-grid solar systems operate independently from the main utility grid. They utilise solar panels to generate electricity and battery banks to store energy to draw on unused solar power when the sun is not shining. Off-grid systems allow homes to detach completely from the utility grid and its associated costs. They require solar off-grid inverters to regulate power from the solar panels and batteries. Off-grid solar provides complete energy independence but requires an expanded solar array and battery capacity to cover usage needs.

On-Grid Connected System

On-grid solar systems remain connected to the utility grid. The solar panels feed excess generated electricity back into the grid, which earns credit from the utility company to offset your regular electricity bills. When solar generation is insufficient, the home draws supplemental power from the grid. On-grid systems don’t require batteries for storage and avoid capacity sizing needed for off-grid. But on-grid solar depends on the utility grid as a backup and leaves households susceptible to grid outages.

Ultimately, off-grid solar functions independently to provide freedom from the utility, while on-grid systems integrate with the utility as a cost-reduction method. Each has advantages depending on homeowner needs and priorities.


Grid Connection Overview

With a grid-connected solar system, your solar panels link to the existing electricity grid to send excess solar power back into the grid. This allows you to get credit or payment for the excess solar energy you produce.

Grid-tied solar systems work as a two-way exchange with your utility company – drawing power from the grid when your solar panels aren’t meeting your needs while sending excess power back to the grid to offset your electric bill potentially. Unlike off-grid solar systems that operate independently, grid-tied systems rely on the grid for supplemental power.




  • Lower upfront cost because you don’t need to invest in solar battery systems
  • Can get payment or billing credits for sending excess solar power back to the grid
  • Reliable power supply even at night or when solar panels underproduce


  • Need approval from your utility company to connect your grid-tied solar system
  • Exposed to grid outages and lack of power when the grid goes down
  • Net metering and incentive policies could change over time

Overall, grid-connected systems provide an affordable way to harness solar power while maintaining convenient access to the grid when needed. However, reliance on the grid can result in a need for more energy independence.

Solar Batteries Overview

With a battery-based solar system, the solar electricity generated from your solar panels charges a battery storage system rather than sending excess power to the grid. This battery system, along with an off-grid solar inverter, allows you to store solar energy for use when your solar panels aren’t actively generating electricity.

Battery storage provides backup power when the sun isn’t shining. So you can tap into stored solar energy overnight or during cloudy weather. This gives you energy independence beyond what grid-tied systems allow. Some homes use hybrid systems with both batteries and partial grid connection.



  • Energy independence from the grid, with your own power supply
  • Backup power protection when the grid goes down
  • Store excess solar energy in batteries for evening or poor weather use
  • Can use solar panel systems in remote locations without grid access


  • High upfront cost for solar batteries and equipment
  • Battery storage systems may need periodic replacement
  • Can be complex to install and maintain battery systems

With batteries, you can harness sunlight on your own terms. However, the tradeoff is higher initial investment and maintenance requirements.


Key Factors to Consider

When weighing grid connection against solar batteries, there are several key factors to take into account:

  • Location and sunlight – Areas with abundant solar resources make battery systems more viable to power your needs fully. Limited sunlight favours the grid as a backup.

  • Energy usage – If your solar panels can offset most of your energy usage, batteries become less essential. High energy needs favour, including battery storage.

  • Budget – Batteries, inverters and other equipment add substantial upfront costs over grid connection alone. Long-term battery maintenance costs should also be considered.

  • Grid stability – Frequent power outages or unreliable grid access promote energy independence through battery storage and solar systems. Stable grid power favours grid connection.

  • Net metering policies – Areas with favourable net metering make grid connection financially advantageous. Less solar-friendly policies tilt the scales toward complete energy independence and batteries.

  • Incentives – Tax credits, rebates and other incentives can offset the cost of batteries and make them more attainable. Lack of incentives favours grid connection.

Evaluating these key factors together will give you a sense of whether grid connection or integrating a battery storage system makes the most sense when installing solar panels and determining the best solar electricity solution for your home and needs.

New Technology Making Solar Storage More Viable

Recent innovations in solar battery technology are making home energy storage more efficient and affordable. Traditional lead acid batteries for storing solar power have limitations around capacity and lifespan. But new lithium-ion solar batteries are game-changers.

Lithium-ion batteries have a higher energy density, allowing more electricity storage within smaller, lighter battery units. They also maintain performance for more charge/discharge cycles compared to lead acid. This equates to lower replacement needs – reduced costs over the system lifespan.


As lithium battery costs continue to decrease, home solar storage grows more viable financially – especially when combined with net metering incentives and tax credits. New hybrid solar systems leverage lithium battery storage and grid connection, using the grid as a backup while batteries store excess electricity from your solar panels.

Solar panel and battery advances provide solar independence even in inclement weather. Stored power protects against power outages, while stored energy gets you through cloudy stretches. Grid-tie inverters switch seamlessly between solar/battery supply and utility grid when needed.

With the right hybrid system, you can optimise solar usage for self-consumption while maintaining grid access – the best of both worlds. Continued innovation in solar technology will only make on-site renewable energy storage more attainable. The aging utility grid may someday be a backup rather than the primary.

Solar & Storage Combos: The Best of Both Worlds

While grid-tied solar offers convenience and batteries provide energy independence, hybrid systems strike a balance using both solar storage and grid connection.

With a hybrid PV system, batteries can store solar energy to power electrical appliances and devices during grid outages. This provides backup electricity even when the sun isn’t actively shining. For grid-tied solar alone, frequent power outages would leave you powerless without a generator.

During normal conditions, excess solar electricity first charges batteries. Once batteries are full, surplus power gets fed back into the grid – reducing your utility bill. And the grid seamlessly supplements your solar/battery supply when needed, like on cloudy days.

Partial home solar storage through hybrid systems allows optimising your self-consumption of the renewable energy you generate while minimising reliance on grid electricity – reducing your carbon footprint. You can size your solar battery capacity based on your essential needs during outages.

While off-grid systems require expanded battery capacity and higher costs for true independence, hybrid systems strike a balance. With the right solar inverter technology, like microinverters, transitioning between solar, battery and grid power is efficient and worry-free.

For many homeowners, the hybrid solar and storage combo provides the best of both worlds – affordable batteries for outages plus the convenience of grid connection. This flexibility helps balance costs while achieving greater energy resilience.


Solar Power That Truly Shines

When installing solar power systems, choosing between grid connection and solar batteries depends on your specific needs and priorities. If you want to generate and use your own electricity without reliance on your utility company, a battery bank enables you to store excess solar energy for use anytime, safeguarding you from grid outages. This energy independence comes at the cost of higher upfront investment.

With grid connection, you avoid that steep battery cost by simply feeding excess power back to the grid. But you still depend on the grid for supplemental electricity when your panels underproduce. Grid-connected systems provide convenience and integrate seamlessly with your existing on-grid setup.

Ideally, your solar power system will generate enough electricity to cover your needs with excess energy to store in batteries or provide to the grid. This maximises solar power usage while minimising grid reliance. With smart planning, you can create a solar system that truly shines by harnessing the sun efficiently and sustainably.

If you’re ready to take the next step towards a sustainable future, get in touch with the team at Your Electrical Experts today. We can help to bring your solar system to life, providing the perfect energy solution for your home or business.