When a building receives electricity from an electricity company, it is connected to the grid. The grid is the network of conductors and appliances used by utilities to deliver electricity from the power plant to the end user, who is normally a commercial building.

Off grid solar system are a great solution for people who can afford upfront costs and want to get off the grid. It is also ideal for remote locations or underdeveloped areas where the power grid is not stable.

For off-grid systems, the net count is calculated on the monthly invoice when solar power is fed into the grid and charged at the same rate as the grid electricity sold to consumers. In this case, the net metering rate for solar electricity fed into credits differs from a normal utility tariff.

On-grid systems are solar power systems connected to the grid. The entire electrical load is powered by solar energy. An off-grid system is called a self-sufficient solar power system. It works outside the grid. It creates its own solar micro-grid.

The high cost of batteries and inverters means that off-grid solar systems are a costly alternative, especially if they are needed in remote areas away from the grid. Offshore solar systems work better and are less reliant on the grid. Since there is no grid connection to the system, battery storage is necessary. Battery costs are falling as demand increases, as off-grid solar systems in cities and municipalities increase.