7 Things You Didn’t Know About On-Grid Solar Power

December 27, 2020

On-grid solar power (also called grid-connected solar) is the simplest, cheapest and most common way to “go solar.” That’s why most homeowners who utilize solar power are on-grid. Businesses too can benefit by using on-grid solar power to save significant money without having to make significant changes to their existing power network or adopting an energy storage solution. If your business is considering going solar, here are 7 things to know about on-grid solar power:

1. The Power You Generate Goes Back to the Utility Grid

The way on-grid solar works is simple. You install panels, and your system connects to the existing utility grid in your area. The power you generate is diverted into the utility grid, and your business becomes both a consumer and provider of energy. The electrical company calculates how much electricity you use versus how much you produce and reflects in your monthly bill. For instance, if you generate 80% of the power you use, your electric bill would be only 20% of what you would have paid without a solar power system.

2. It’s Reliable

The existing utility grid does its job very well. It’s a complex system that has been refined over decades to be incredibly efficient and reliable. When you implement on-grid solar, you get the benefits of using this system. You won’t have to worry about creating your own complex system and you will rarely have to worry about blackouts. Grid-connected solar has the reliability of an established system with the savings of free energy from the sun.

3. Low Cost of Entry

The startup cost of on-grid solar is relatively low and becoming more affordable every day. In the infancy of solar power, panels were very expensive and could be difficult to maintain. Since then, the solar power industry has taken off, and panels are now manufactured at scale, making them far cheaper than the original models. In the last decade alone, the cost of solar panels has come down by approximately 80%.

4. It’s Scalable

Grid-connected solar can expand when your business does. Since you’re already hooked into the utility, adding more panels to generate more electricity is simple. This means you’re never “stuck” with a solar solution that no longer fits the needs of your business. You can also easily mix your sources of power, as on-grid solar is a part of your overall system, not a replacement. On-grid solar system design makes solar simple for growing companies.

5. On-Grid Solar Is Cheaper Than Off-Grid

Grid-connected solar is a cost-effective way to go solar, because it does not require a storage system. With on-grid solar system design, the utility company takes care of distributing excess energy generated by your solar system. That means no expensive batteries — and a far more modest startup investment. If your company is looking to test out a solar solution, on-grid is the way to go. You will start saving money immediately.

6. Faster ROI

Solar power can save your company significant money once it’s up and running, and with on-grid solar, your only initial investment is your panels and supporting system. The savings from solar power can return your investment within 7-8 years. Since you will have a significant reduction to your monthly energy bills, depending on how much energy your on-grid solar system generates, you will dramatically lower your operating expenditures. Moreover, you can get credits for any excess energy generated by your solar panels from the utilities, further reducing your payback period as well as your annual operating expenditures.

7. Protect Against Blackouts

Some businesses prefer off-grid solar because it means they will be completely disconnected from the utility grid and system, and therefore not susceptible to system-wide blackouts. However, you can protect your business from grid blackouts with on-grid solar as well. Backup batteries — which are far smaller and cheaper than full storage systems — can protect your business from grid blackout due to overconsumption during peak hours or overall system failures. When the grid goes down, your backup battery will immediately feed the power you captured into your system to keep you up and running. For businesses that rely heavily on electricity, this option can be both cost-friendly and serve as insurance against power loss.

On-grid solar is a great way for businesses to start saving money with renewable energy immediately — and without significant costs or major changes to the system they already use.

Sun Capture is a solar energy services company in Saudi Arabia helping Saudi businesses bridge the gap between the current rising energy demands and costs, and the coming national move towards affordable renewable energy. To learn more about how solar can help your energy needs and bring your business in line with Saudi Vision 2030, contact us today.