On-grid, off-grid or hybrid: which solar system to choose

September 28, 2026 · 5 min read · Danilo Nascimento

Compare the three types of photovoltaic system: how they work, what happens during a power outage, relative costs and when each one makes the most sense.

Three ways to use solar energy

Every system starts the same way: panels produce direct current. The difference is where that energy goes: to the grid, to batteries or to both. That defines the cost and what keeps working when the utility grid goes down.

On-grid

Grid-connected

Panels
Inverter
Meter
Grid

Usually the lowest cost per kWp
No batteries to maintain
Surplus energy can earn credits or payment, depending on local rules

Shuts down during a power outage (anti-islanding)

Off-grid

Independent of the grid

Panels
Controller
Batteries
Inverter

Works where there is no grid
Ideal for farms and remote sites

Sized for the month with the least sun
Large battery bank

Hybrid

Grid, panels and batteries

Panels
Hybrid
Battery
Grid

Can keep circuits running during an outage (with backup installed)
Uses the battery during expensive hours

Mid-range cost
Backup depends on the model and the circuits covered

What happens when the grid goes down

This is the most important difference between the three. The on-grid system shuts down for safety, so it does not energize the grid while technicians work on it; the off-grid system does not depend on the public grid and keeps operating while energy is available; the hybrid can supply backup circuits if the equipment has that function and the installation is set up for it.

Interactive

Simulate a power outage

See what happens to each system when the utility grid goes down.

On-grid

Panels
Inverter
Home
Grid

Sun and grid power the home; the surplus goes to the grid.The inverter shuts down for safety: no power at home, even with sunshine.

Off-grid

Panels
Batteries
Inverter
Home

Panels and batteries power the home, with no grid.Nothing changes: the system does not depend on the grid.

Hybrid

Panels
Hybrid + battery
Home
Grid

Sun first, battery at night, grid as a reserve.With the backup (EPS) function installed, the inverter disconnects from the grid and keeps running on sun and battery. The changeover time and the circuits covered depend on the model and the installation.

Side-by-side comparison

	On-grid	Off-grid	Hybrid
Utility grid	Required	Not used	Used, but not dependent on it
Batteries	Not needed	Yes, large	Yes, smaller
Power outage	Shuts down	Keeps running	Keeps running (backup)
Relative cost	Lowest	Highest	Mid-range
Typical use	Lower the electricity bill	Sites with no grid	Savings with security

✓ advantage · ◐ depends on the case · ✗ point of attention

Costs and maintenance over time

≈ 0on-grid maintenance beyond cleaning and checking the connections

10+ yearsuntil the first inverter replacement, typically

10+ yearstypical life of lithium (LiFePO4) in daily use

50%maximum recommended discharge for lead-acid

When comparing quotes that include batteries, look at the cost per kWh over the service life, not just the purchase price: lead-acid is usually cheaper to buy, but it usually lasts less.

How to decide

Is there no grid at the site, or is it very unreliable?

Yes → Off-gridThe system must be sized for the worst month.
Do power outages cause problems (home office, freezer, well pump)?

Yes → HybridBackup for the essential circuits.
On-gridUsually the lowest upfront cost; the return depends on local rules. It can become hybrid later by changing the inverter and adding batteries.

Drawing the alternatives helps when talking to the installer and the family. The diagram below shows a complete hybrid system.

Draw it in Editor Solar

This is Editor Solar itself, already loaded with the diagram from this article. Move the equipment, edit labels, connect new parts and export to PNG, SVG or PDF. It is free and runs right in your browser.

Hybrid system: panels, grid and battery bank connected to the hybrid inverter.

Try it: Turn this drawing into an on-grid system: remove the battery bank and swap the hybrid inverter for a regular one. Then make the off-grid version, without the grid, using a charge controller and an off-grid inverter.

Ready-made templates: On-grid (grid-tied) solar system diagram · Hybrid inverter with battery and grid diagram

Open this diagram in the full editor ↗

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