On Grid Solar Systems Explained: How They Work & Why They Save Money

In Pakistan, where energy shortages and rising electricity costs are a constant challenge, on-grid solar systems offer an innovative solution. On grid solar systems, also known as grid-tied systems have changed the way we think about energy consumption. These systems are connected to the public electricity grid and use solar panels to generate power for your home or business.

Unlike off-grid systems, they eliminate the need for expensive battery storage. That’s why these are a cost-effective choice for all users. The price of an on-grid solar system can vary based on the system’s capacity and type. A 10KW system is more expensive than a 5KW system. A 5KW solar system is also more expensive than a 1KW system and 2KW system. In this article, we’ll explore everything you need to know about on grid solar systems.

What is an On-Grid Solar System?

An on grid solar system, also known as a grid-tied or grid-connected solar system, is a solar power setup that operates in conjunction with the local electrical grid. This type of system allows users to generate electricity from solar panels while maintaining a connection to the utility grid. It enables them to consume electricity and send any surplus back to the grid.

Components of on grid solar systems

They consist of several key components that work together to utilize solar energy and supply electricity to the grid. Here are the primary components:

Solar Panels
Solar panels, or photovoltaic (PV) modules, are responsible for converting sunlight into direct current (DC) electricity. They consist of multiple solar cells made from silicon, which absorb sunlight and generate an electric current.

Inverter
The inverter is a key component of an on grid solar system. It converts DC into AC electricity. This electricity is used in homes. There are different brands of inverters available in Pakistan. Explore Growatt inverter price in Pakistan to make a wise decision.

Mounting Structure
The mounting structure provides support for the solar panels and ensures they are securely installed on rooftops or ground areas.

Metering System
A metering system measures the amount of electricity produced and fed into the grid. It includes two meters: one for measuring electricity consumed from the grid (import meter) and another for measuring excess electricity sent back to the grid (export meter).

Monitoring System
This system allows users to track the performance of their solar setup in real-time, providing data on power output, energy consumption, and overall system health.

Wiring and Electrical Components
Wiring is essential for connecting all components of the system. It facilitates the flow of electricity between the solar panels, inverter, and the grid.
These components work collectively to create an efficient on-grid solar system that can reduce energy costs while contributing to renewable energy generation

Who Should Use Them in Pakistan?

They are an effective solution for various groups looking to utilize solar energy and reduce electricity costs. Here are the primary users who can benefit from these systems:
Homeowners with High Electricity Bills
Businesses and Commercial Establishments
Environmentally Conscious Individuals
Property Owners Looking to Increase Property Value
Those Eligible for Net Metering
Users with a Limited Budget for Batteries

How Do On-Grid Solar Systems Work in Pakistan?

The process of on-grid solar systems is simple. These systems utilize sunlight to generate electricity while remaining connected to the public electricity grid. The process begins with solar panels, which are installed on rooftops or open grounds. These panels utilize sunlight and convert it into direct current (DC) electricity.

This electricity is sent to an inverter. The inverter plays a vital role by converting the DC electricity into AC electricity. During the day, when the solar panels are producing electricity, this energy is first used to power the home or business.

If the system produces more electricity than is being consumed, the extra energy is not wasted. The system sends it back to the grid by net metering. Net metering allows users to earn credits for the excess energy they export to the grid.

At night or during cloudy weather when the solar panels are not producing enough electricity, home or business automatically draws power from the grid. This process provides a continuous power supply without battery storage.

Benefits of On-Grid Solar Systems in Pakistan

On-grid solar systems have a lot of advantages for users in Pakistan.Here are the key benefits of these systems in Pakistan:

Significant Savings on Electricity Bills
One of the most compelling benefits of on-grid solar systems is their ability to reduce electricity bills.

No Need for Expensive Batteries
Unlike off-grid systems, these do not require battery storage. This eliminates the high upfront cost of batteries, making on-grid systems more affordable and easier to maintain.

Reliable Power Supply
They provide a seamless power supply by combining solar energy with grid electricity. During the day, your home or business runs on solar power, and at night or during low sunlight, you automatically draw power from the grid.

Environmentally Friendly
They help to lower carbon emissions and reduce carbon footprint, contributing to a healthier environment.

Increased Property Value
Homes and businesses with solar systems are more attractive to buyers because they offer lower electricity costs and energy independence. Studies show that properties with solar installations can see an increase in value by up to 10–15%.

Scalability
On-grid solar systems are highly scalable. You can go with a small system and expand it as your energy needs grow or your budget allows. It makes solar energy accessible to a wide range of consumers. If you’re looking to take control of your energy costs and contribute to a greener future, an on-grid solar system is the way to go.
.

Cost of On-Grid Solar Systems in Pakistan in 2025

The cost depends on its size, component quality, and installation complexity. Below are estimated prices for common system sizes:
5kW On-Grid Solar System Price in Pakistan
Price: The starting cost for a 5kW on-grid solar system is approximately PKR 780,000. This price includes:
A 10kW inverter (brands like Goodwe or Solis)
Roof-mounted L2 structure
Installation charges
Monthly Production: This system can produce around 570 units of electricity per month.
10kW On-Grid Solar System Price in Pakistan
Price Range: The cost for a 10kW solar system ranges from PKR 1,200,000 to PKR 1,700,000, depending on the quality of components and installation specifics.
Specifications: This system is designed to meet higher energy demands and can reduce electricity bills through net metering.

What Affects the Cost of On-Grid Solar Systems?

Several factors influence the overall cost of an on-grid solar system in Pakistan:
Solar Panel Quality and Efficiency
Tier-1 Panels: High-efficiency panels (e.g., Longi, JA Solar, Canadian Solar) cost more but offer better performance and durability.
Local Panels: Lower-cost options are available but may have lower efficiency and shorter lifespans.
Inverter Type and Brand
Hybrid Inverters: High-quality inverters (e.g., Huawei, Growatt, Solis) are more expensive but ensure reliable performance.
Standard Inverters: More affordable but may have fewer features and a shorter lifespan.
Installation Complexity
Roof Type: Installation costs vary depending on whether the roof is flat, sloped, or requires reinforcement.
Shading and Space: Additional labor may be needed to optimize panel placement and avoid shading.
Net Metering Setup
Bi-Directional Meter: Costs for installing a net metering-compatible meter and obtaining approvals also influence the price.

Expected Trends in 2025

Declining Solar Panel Prices: As solar technology advances and production scales up, the cost of solar panels is expected to decrease further.
Increased Efficiency: Higher-efficiency panels and inverters will become more affordable, allowing for better performance at lower costs.
Expansion of Net Metering: Wider adoption of net metering policies will make on-grid systems even more financially attractive.
Local Manufacturing: Growth in local solar panel and inverter manufacturing could reduce costs and improve accessibility.

Conclusion

On-grid solar systems are an excellent way to save money and reduce electricity costs.They offer significant savings on electricity bills, reliable power, and environmental benefits. Homes with on-grid solar systems have great market value. Now it is the perfect time to switch to solar energy.

Frequently Asked Questions

On-grid systems are connected to the public electricity grid and don’t require batteries, while off-grid systems operate independently with battery storage. On-grid systems are more affordable and ideal for areas with reliable grid power.

Batteries are only needed for off-grid or hybrid systems. On-grid systems use the grid as a backup, eliminating the need for expensive battery storage.

Net metering allows you to send excess solar energy to the grid in exchange for credits on your electricity bill. These credits offset the cost of power you draw from the grid at night.

Solar panels have a lifespan of 25–30 years, with most manufacturers offering a 25-year performance warranty. They require minimal maintenance to keep them functioning efficiently.