Grid-tied systems are the most common type and popular scheme in solar PV system. Grid-tied systems are connected to the local utility grid, and allow residents of a building to use both solar energy as well as electricity from the grid simultaneously. Grid-tied systems enable maximum utilisation of solar power during the sunshine hours, meeting load demand. When there is no demand for energy, the solar panels send excess electricity generated back out into the grid through a facility called ‘Net- Metering’ based on net metering agreement with their utility. The agreement allows utility customers to receive credit for the excess energy they generated, typically credited as a kilowatt-hour/Units credit on the next month’s bill.
Grid-tied systems do not provide protection from power outages. When the electrical grid fails, grid-tied systems will not continue to operate. This allows utility employees to fix the power lines safely without wasting time identifying solar energy systems that are still feeding electricity into the power lines.