Grid-Tied System
A Grid-Tied System (also called a grid-connected or grid-interactive solar system) is a solar PV installation that connects directly to the utility grid. Instead of operating independently like an off-grid system, a grid-tied system works in parallel with the electrical grid—allowing homeowners and businesses to use solar energy when available and draw grid power when solar production is insufficient.
Grid-tied systems are the most common type of solar installation worldwide because they are cost-effective, easy to maintain, and require no batteries. They support programs like net metering and export compensation, and they optimize system ROI by leveraging the grid as virtual storage.
Grid-tied solar designs are typically created using software tools such as Solar Designing and verified using shading models like Shadow Analysis to ensure strong annual performance.
Key Takeaways
- A Grid-Tied System connects solar power production directly to the utility grid.
- It is the most common solar configuration due to simplicity and affordability.
- Solar powers on-site loads first; excess energy flows to the grid.
- Grid-tied systems rely on inverters, proper stringing, and shading analysis for optimal performance.
- They do not provide backup power unless combined with battery storage.

What Is a Grid-Tied System?
A Grid-Tied System is a solar power setup where the PV array generates electricity that flows into an inverter, which then synchronizes with the local utility grid. Any excess energy can be exported to the grid, while any shortfall is supplemented from the grid automatically.
A grid-tied system typically includes:
- Solar panels
- String inverter or microinverters
- AC/DC disconnects
- Wiring, BOS components
- Grid interconnection equipment
It does not require batteries, although battery storage can be added later for backup or peak load shifting.
Related concepts include Inverters, Stringing & Electrical Design, and Net Metering.
How a Grid-Tied System Works
1. Solar Panels Generate DC Power
The PV array produces direct current electricity based on sunlight.
2. Inverters Convert DC → AC
The inverter synchronizes its output to match the utility grid’s voltage and frequency.
See Inverter Sizing for AC capacity and voltage considerations.
3. Power Is Distributed to the Building
Solar power serves on-site loads first, reducing how much power is purchased from the grid.
4. Excess Power Is Exported to the Grid
Under net metering or export programs, customers receive credits or compensation.
5. The Grid Provides Backup Power
During low-solar periods (cloudy weather, nighttime), the grid provides energy seamlessly.
For shading performance, see Shading Analysis.
Types / Variants of Grid-Tied Systems
1. Standard Grid-Tied System (No Battery)
- Most common configuration
- Lowest cost
- No backup power during outages
2. Grid-Tied with Battery Backup (Hybrid System)
- Uses hybrid inverters
- Provides limited backup during outages
- Optimizes TOU (Time-of-Use) charges
- Supports self-consumption
See Load Analysis for sizing considerations.
3. Commercial & Industrial Grid-Tied Systems
- Three-phase architecture
- Often paired with demand charge reduction
- Larger BOS footprint
4. Utility-Scale Grid-Tied Solar Farms
- Connect at medium-voltage levels
- Require grid studies, interconnection engineering, and SCADA
How Grid-Tied Systems Are Measured
1. AC Capacity (kW)
Determined by inverter output rating.
2. DC Capacity (kWp)
Determined by total module wattage.
3. DC/AC Ratio
Commonly 1.1–1.3 depending on design goals.
4. Annual Energy Production (kWh/yr)
Calculated using performance models and POA irradiance.
See: POA Irradiance.
5. Grid Export Percentage
Amount of energy sent to the grid versus consumed on-site.
6. Performance Ratio (PR)
Measures overall system efficiency; see Performance Ratio.
Typical Values / Ranges

Common grid voltages: 120/240V (residential), 208V, 400V, 480V (commercial), 12–35kV (utility).
Practical Guidance for Solar Designers & Installers
1. Verify grid voltage before selecting inverters
Single-phase vs three-phase affects system architecture.
2. Design for optimal DC/AC ratio
Avoid excessive clipping while maximizing ROI.
3. Run shading simulations early
Use Shadow Analysis or shade reports to prevent underperformance.
4. Confirm AHJ and utility interconnection rules
Utilities have strict requirements for metering, disconnects, and export limits.
5. Use accurate modeling tools
SurgePV’s Solar Designing improves layout efficiency, PV density, and energy modeling.
6. Include rapid shutdown components (NEC 690)
Especially for rooftop string inverter systems.
7. For TOU utility regions, pair with storage
Storage optimization can be evaluated using tools like Solar ROI Calculators.
Real-World Examples
1. Residential Home with Net Metering
A homeowner installs a 7 kW grid-tied system.
During sunny hours, the system powers appliances and exports excess energy, generating bill credits through net metering.
2. Commercial Warehouse
A 300 kW three-phase grid-tied system offsets daytime operational loads.
Excess energy exported to the grid provides additional financial savings.
3. Utility-Scale Solar Farm
A 50 MW solar farm connects through medium-voltage transformers and a substation.
The grid-tied setup injects energy into the transmission network under long-term PPA agreements.
