Off-grid
The loads are running on the power being provided by the inverter. Additional power is supplied to a battery bank which stores energy that can be used later or at night when the solar panels are not generating any power. This in turn also minimizes the power that needs to be used from the power grid resulting in greater savings. Bigger the battery bank higher is the capacity to store power and lengthier is the backup time.
On-grid
The inverter is providing the loads with the required power and any excess power can be fed into the electricity grid which will enable the advantages of feed-in credits. When the loads require more power than the solar system can provide, the extra power can be supported by the utility grid. The inverter will be set to provide power first from the solar panels (free electricity) and draw power from the grid only if required.
