Does Solar Power Take You Off the Grid? Get Answers Here

Fact or Fiction: Does Solar Power Take Your Business Off the Grid?

It’s a common misconception that using solar power means you are no longer tied to the power grid. In fact, most solar installations — whether agricultural, commercial, or residential –— keep the subject property tied to the grid. Off-grid installations are the exception, not the norm.

But they are an option, in addition to two others. 

To allay any further confusion on this topic, we’re going to compare the three primary types of solar installations — grid-tied, off-grid, and grid-tied with solar battery backup. For each type of installation, we’ll look at the points in its favor as well the drawbacks.

Then, you’ll be able to make an informed decision about which option is best for your organization.

Grid-tied solar power — the most common type

The great majority of solar power installations take this approach. The solar panels are installed either on the roof or on the ground. The panels get connected to the grid. As your panels produce power, your organization uses that power. But it also draws power from the power grid when the panels don’t produce enough to keep everything running. 

Pros of grid-tied system

Here are the main points in favor of a standard grid-tied solar power system:

Benefits from net metering

With net metering, any surplus power generated by your organization's solar energy system goes into the electric grid to be used as the power company chooses. Yes, that means you are helping the utility along with other homeowners and businesses by generating power they get to benefit from. 

This is good for you because you’ll get a credit on your power bill. It’s good for them because it eases the strain on the grid. Not every state or utility offers net metering, and the compensation rates vary. 

Secure and steady power supply

When your solar panels don’t produce enough to cover all your agricultural business’ needs, the grid supplies whatever is lacking. With a grid-tied system, your experience of electricity won’t feel any different than it does now. Things will appear to work as they always have. When you turn something on, you won’t have to wonder if it will have power.

Most economical option

Anyone looking for the best deal on solar power — meaning spending the least amount of money and gaining the most savings possible — would probably choose the grid-tied option. 

Cons of Grid-Tied System

There are a couple drawbacks to a grid-tied solar power system, too. For example:

Your power still goes out

With a grid-tied system, your flow of electricity is still dependent on the power company’s infrastructure. So, if the power goes out in your area, your business will lose power too. Solar power does not automatically protect you from power outages. 

Net metering policies can change

Governments and utilities can technically alter their net metering policies. For a grid-tied system, this means you aren’t guaranteed for life to keep getting the same bill credits. To be clear, policy changes rarely happen, but it’s not impossible, such as what Nevada experienced a few years back. 

This means you are not completely free from the government or the utility with a grid-tied system. They still have some influence in your life.

Off-Grid Solar Power 

With an off-grid solar installation, now you’re in the situation that prompted the question at the top of this page. Your panels still link to an inverter which converts the DC power into AC, and then distributes it to your property’s electrical panel, outlets, and appliances. 

But there is no backup support from the utility company. You are on your own. Freedom sounds great, and it can be, but it also comes with increased risk. 

Points in Favor of Off-Grid Solar System

The points in favor of off-grid solar are pretty obvious, and so are the drawbacks. Here are the benefits:

Total freedom from the power company and government

No matter what the utility does, it won’t affect you. If they raise rates there’s no effect on you. If they alter the terms of their agreements — there’s no effect on you. How they produce their energy, when regulations change, paying their debts, repairing broken lines — none of this affects you with an off-grid system.

It’s just like having your own septic system and no longer relying on the public sewage system. 

No loss of power in power outages

With off-grid solar, as long as your panels keep producing, you have power. Every other company on the block could lose power, but if you are off the grid, your lights will stay on and your fridge will stay cold.

Drawbacks of Off-Grid System

Now, let’s look at the perils of off-grid solar. And there are many.

No net metering — Longer wait to recover investment

Off the grid, any excess power produced by your solar panels will, in theory, be wasted. This would happen only when your solar batteries were already fully charged. But in that situation, you won’t get credit for any extra power generated. That’s lost return on investment.

Constant concern about power levels

It’s harder to relax with off-grid solar. In the back of your mind, you always have to be wondering if you have enough power stored up to do a certain task. 

Can we run the heater all night? Should we run the dishwasher again? Is the AC on too high? You will never stop asking these questions with off-grid solar, especially when it’s been dark and rainy for weeks in the winter months and your panels aren’t producing as much. 

No backup if something goes wrong

It’s not probable that your system will have problems, but there’s always a chance. Suppose a battery malfunctions. You had three, but now you only have two. Until you can get that third one replaced, you’re in hot water. Not literally, of course, because you’ll have a harder time keeping your water hot until you replace the battery. The point is, with off-grid solar, you have no backup from the reliable power grid.

More expensive in the beginning

To make off-grid solar work, you must have battery backups. And solar batteries are great — we recommend them to many of our customers. But they do raise the initial cost. 

Harder to sell your property

Many people wouldn’t want to operate out of a location that was off the grid. That means, when you try to sell your property, you’ll be selling to a much smaller pool of potential buyers. This is something to think about looking ahead long term. 

Grid-tied solar power with battery backup 

Lastly, you can merge the previous two options and in some ways get the best of both worlds. A grid-tied system with battery backup eliminates several of the drawbacks of the first two types of systems. 

Points in favor of grid-tied with battery backup

With a battery backup aiding your grid-tied solar installation, your organization now has:

Power security in all situations

Now, if anything goes wrong, you have the power grid there for when you need it. But, you won’t need it very much, because your solar batteries will enable you to store energy and then provide for most of your power needs. But if ever your batteries run low in the middle of the night, the grid will kick in and keep operations going.

Continuing power during outages

If the power goes out, just like with off-grid, you’ll continue to have power. No loss of internet or recharging capabilities. And no need for noisy, smelly generators. 

Save more money 

With battery backups, you actually have more options than just storing power in case of an outage. With some solar power batteries, for example, you can choose between backup, self-supply, and time-of-use settings.

Why does this matter? Well, during an entire year, how many power outages are likely? Not many. But every day in some places, utility companies like to jack up the rates during peak usage periods.

That means you’re paying way more for power during those times than in other times. With battery backups, you can adjust the settings so your batteries supply your power during peak billing periods. This allows you to escape from the super-high rates during those times. And that’s why you’ll recover your investment sooner with this type of system. 

Drawbacks of grid-tied with battery backup 

While this type of solar installation seems like it combines the best benefits of the others, it also has a couple drawbacks.

More costly up front

Solar batteries do increase the costs of going solar. There’s no way around it. That means your break-even point will take longer to reach than with a standard grid-tied system. But if the other benefits of grid-tied with solar batteries are valuable enough to you, then it’s worth the higher initial investment. Either way, you will make it back eventually. 

Backup power has limits

Most solar battery backups do not store enough energy to fully supply every single power need for your business. This is, again, one of the biggest risks of the off-grid approach. 

But even with a grid-tied system with batteries, you likely cannot leave your AC or heater on full blast all day and night. You will have to make some choices, and it depends on how much battery capacity you purchase.

Also, some batteries  allow you to pre-select which systems will not be powered by your batteries during an outage. You can determine in advance, for example, that you will power down your water heater, or won’t allow AC to come on. You can adjust these settings anytime based on the need of the moment. 

Which type of solar installation is best for your organizations?

After reading this, you may already know which one you prefer. If you’re not sure, when you talk to a Lattice Energy Solutions consultant, you can ask them about solar batteries and the pros and cons of the various options for your specific situation.