On-Grid Solar System in Pakistan: Current Trends in 2024

An on-grid solar system, also known as a grid-tie or grid-connected system, is a type of solar power system that generates electricity through solar panels, a setup that works in conjunction with the existing electrical grid. This system in Pakistan and elsewhere allows you to use the electricity you produce first, and any excess power is fed back into the grid. When your property draws electricity from the grid, excess electricity generated by the solar panels can be credited to your account through net metering, potentially reducing energy bills or even earning you money.

On-grid solar systems typically include solar panels, an inverter to convert the DC power generated by the panels into AC power used in homes and businesses, and a utility meter to measure the power flow between your system and the grid. Some regions offer net metering policies, which credit solar system owners for the excess electricity they feed back into the grid, providing additional financial benefits.

Our market research indicates that on-grid solar systems in Pakistan are popular in the 6kW solar system range, which can generate 700 to 900 units of electricity per month, providing significant cost savings and a payback period of approximately 3 years.

As compared to 3kW system and 5kW solar systems, the popularity of 6kW on-grid solar systems in Pakistan can be attributed to their cost-effectiveness, reliability, and potential for long-term savings, as the system is considered suitable for both residential and commercial use, offering a dependable and potent solution for energy needs.

An on-grid solar system is designed to work in conjunction with your local utility grid. Its components work together to convert the sun’s energy into usable electricity for your home or business, while also allowing for the potential to earn credits or reduce energy bills through net metering. The main components of an on-grid solar system include:

1. Solar panels: Solar panels convert sunlight into electricity through a process called the photovoltaic effect, generating direct current (DC) electricity.

Note: If you want to know the most up-to-date solar system prices, solar system specifications, solar system efficiency rate, and solar panel type, we suggest you check our solar system guide so that you can get the best solar panel prices from different solar panel retailers across Pakistan.

2. Inverters: Inverters convert the DC electricity produced by solar panels into alternating current (AC) electricity, which is the type of electricity used in most homes and businesses.

We have conducted a comprehensive study and gathered enormous details about different kinds of solar inverters, which will help you consider the best possible choice for your premises.

3. Racking or mounting system: Racking systems secure solar panels to a rooftop or the ground, ensuring they are positioned correctly to maximize energy production.

4. Grid-tied inverter: This component is specifically designed for on-grid solar systems, managing the flow of electricity between the solar panels, inverter, and the grid. It also includes safety features to prevent power from being sent to the grid during blackouts.

5. Net meter: A net meter measures the amount of electricity produced by the solar system and the amount consumed from the grid, allowing for net metering, a billing mechanism that credits customers for excess electricity generated and fed back into the grid.

On-grid solar systems are a great way to tap into renewable energy, reduce your electricity costs, and enjoy the benefits of a clean and reliable power source, and offer several advantages that make them an attractive choice for homeowners looking to switch to renewable energy. Here are some of the key benefits:

Reduced Electricity Bills:  This is a major advantage. By generating your own solar power during the day, you can offset the electricity you would normally draw from the grid, leading to significant savings on your monthly bills. In some cases, with net metering programs, you can even earn credits for excess electricity you produce.

Lower System Cost:  On-grid systems are generally cheaper than off-grid systems because they don’t require expensive battery banks to store excess solar energy for nighttime use. This upfront cost savings can make solar power more accessible for a wider range of homeowners.

Reliable Backup:  Even on cloudy days or at night when your panels aren’t producing, you’ll still have access to electricity from the grid. This ensures a constant and reliable power supply for your home, unlike off-grid systems that solely rely on stored solar energy.

Easy Maintenance:  On-grid solar systems require minimal maintenance. The panels themselves are quite durable and only need occasional cleaning. The inverter, which converts DC to AC electricity, may require some maintenance depending on the model, but overall the upkeep is minimal.

Increased Home Value:  Many studies have shown that homes with solar panels tend to sell faster and for a higher price compared to similar homes without them. Solar power is becoming increasingly desirable, and an on-grid system can be a valuable addition to your property.

Environmental Benefits:  By generating clean solar energy, you’ll be reducing your reliance on fossil fuels and your carbon footprint. This helps combat climate change and promotes a more sustainable future.

However, there are also some limitations to consider:

No backup power during outages: If the grid goes down, your on-grid solar system won’t be able to provide electricity to your home unless you have a battery backup system.

Dependence on the grid: On-grid systems rely on the utility company and net metering policies, which can vary depending on your location.

Although the choice between on-grid, hybrid, and off-grid solar system in Pakistan depends on various factors such as location, power supply stability, and budget, on-grid solar systems are considered as the most popular choice due to their cost-effectiveness and lower maintenance costs.

Since they are connected to the national power grid, allowing excess electricity to be fed back to the grid during the day and drawing power from the grid during the night or periods of low sunlight, it makes this system suitable for areas with a stable power supply and allows homeowners and businesses to reduce electricity bills through net metering.

On the other hand, for areas with frequent power outages, a hybrid solar system is largely considered to be a better choice because these systems combine the benefits of on-grid and off-grid systems, allowing excess electricity to be stored in batteries for later use during power outages.

While hybrid systems have higher initial investment costs and may have higher operation and maintenance costs, they provide uninterrupted power supply during outages.

Generally speaking, Off-grid solar systems are not as popular in Pakistan due to their higher upfront costs and lack of net metering benefits. These systems are disconnected from the national power grid and rely solely on batteries for energy storage, making them more suitable for remote locations where extending power lines is not feasible.

Before deciding to opt for a solar system, be it on-grid, off-grid or hybrid, we recommend consumers in Pakistan to consider factors such as energy requirements, budget, location, and the availability of subsidies and incentives.

In Pakistan, the choice between a hybrid and on-grid solar system depends on individual needs and circumstances. On-grid solar systems are more cost-effective for areas with stable power supply, allowing excess energy to be fed back to the grid, potentially reducing electricity bills through net metering. However, they are not suitable for areas with frequent power outages due to the lack of energy storage capabilities.

On the other hand, hybrid solar systems combine the benefits of both on-grid and off-grid systems, providing energy storage capacity and uninterrupted power supply during outages. While hybrid systems have higher initial investment costs, they offer greater energy security and independence, making them a better choice for areas with frequent power outages.

Similarities Between On-Grid, Off-Grid, And Hybrid Solar Systems

There are some similarities that highlight the common features and benefits shared by on-grid, off-grid, and hybrid solar systems, showcasing the versatility and effectiveness of solar energy solutions across different applications and environments. The similarities include:

1. Solar Panels: All three types of solar systems utilize solar panels to capture sunlight and convert it into electricity.

2. Energy Independence: Off-grid and hybrid solar systems offer energy independence by generating electricity on-site, reducing reliance on the grid.

3. Environmental Benefits: On-grid, off-grid, and hybrid solar systems contribute to reducing carbon footprint and promoting sustainability by utilizing clean and renewable solar energy.

4. Battery Storage: Hybrid and off-grid solar systems incorporate battery storage to store excess energy for use during periods of low sunlight or power outages.

5. Cost Considerations: Each system type involves initial investment costs, with off-grid and hybrid systems typically requiring higher upfront costs due to the inclusion of battery storage.

6. Customization: All three types of solar systems can be customized to meet specific energy needs and circumstances, providing flexibility in design and implementation.

Differences Between On-Grid, Off-Grid, And Hybrid Solar Systems

On-grid, off-grid, and hybrid solar systems all use solar panels to capture sunlight and convert it into electricity. However, they differ in how they connect to the utility grid and how they store excess energy.

On-grid systems are connected to the utility grid and do not usually include battery storage, off-grid systems are self-sufficient with battery storage and no grid connection, and hybrid systems combine both grid connection and battery storage for greater flexibility and energy security.