Grid-tied, on-grid, utility-interactive, grid intertie and grid back feeding are all terms used to describe the same concept – a solar system that is connected to the utility power grid (or your electricity supply)


  1. Solar panels convert energy from coming from sun into electric energy, Direct Current (DC), which is sent to inverter.
  2. The inverter then converts DC into Alternating Current (AC) because you can’t use DC directly – all your electronics need AC supply. Another important thing that the grid-tie inverter does is to regulate the charge.
  3. Inverter converts DC into usable AC and feeds to the main supply.
  4. Net Meter (bi-directional meter which replaces your existing meter) calculates net consumption of household = Electricity taken from the grid – Electricity given to the grid.
  5. Electricity given to the grid is solar energy produced by the plant.

Advantages of Grid-Tied Systems
Save more money with net metering A grid-connection will allow you to save more money with solar panels through better efficiency rates, net metering, plus lower equipment and installation costs: Batteries, and other stand-alone equipment, are required for a fully functional off-grid solar system and add to costs as well as maintenance. Grid-tied solar systems are therefore generally cheaper and simpler to install. Your solar panels will often generate more electricity than what you are capable of consuming. With net metering, homeowners can put this excess electricity onto the utility grid instead of storing it themselves with batteries. Net-Metering: In this system, you have a single new bi-directional meter. When you consume electricity from the grid (or your electricity supply), the meter readings will move forward; but, when you produce electricity and send it to the grid, the meter readings shall move backward. Suppose you use 10 units of electricity in a day and produce 8 units, your meter will show a reading of 2 units. And if you use 10 units of electricity and produce 12 units, then your meter will show -2 units. Your bill at the end of month will be based on net units consumed/produced. If you generate extra electricity in any month, the surplus is carried over to the next month and netted. At the end of a year, if your total production is more that what you consumed, then you will get paid for the next surplus electricity produced at the cost decided by your state’s electricity regulatory commission.

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