On-grid system:

An on-grid system is also referred to as a grid-tied solar system which means that it is connected to the utility grid. It is the most commonly used solar system for residential and commercial requirements. This system is beneficial as it does not require the use of additional batteries for storing power. A huge battery backup to suffice electricity requirements when the solar panel system is not producing electricity is very costly and will increase the upfront cost. On-grid systems make use of the electricity produced by the utility when the system is not producing sufficient energy to meet needs is or malfunctioning. This means your energy needs will be fulfilled without costing you a huge amount of batteries.

However, on-grid solar systems will not operate in case of a utility power failure. If the utility is facing a power failure, the on-grid system will also automatically stop its production. This is done for the safety of the people at the grid working to resolve the power failure. This makes an on-grid system unsuitable for places that experience lots of power failures.

 

Off-grid system:

As the name specified, off-grid systems are not connected to the utility grid and operate independently. Since these systems are not connected to the grid, battery storage is a must in these systems. The off-grid system is designed to meet all energy needs of the pace where it is installed. For this, huge battery storage capacity and off-grid inverters are used, which are quite costly. Therefore, off-grid systems are more expensive as compared to on-grid systems. These systems are best suitable for places far from the electricity grid or are in a remote location like army camps, communication towers, remote rural areas, mining areas, remote farms, street lightings, or highway motels. Off-grid solar systems are also popularly used by RVs and caravans to power their appliances.

The benefit of using an off-grid solar system is that you can enjoy an uninterrupted power supply even in case of utility power failures if you have sufficient battery backup.