An off-grid system is not connected to the electricity grid and therefore requires battery storage. An off-grid solar system must be designed appropriately so that it will generate enough power and have enough battery capacity to meet the power requirements, even when there is less sunlight in winter or in the rainy season.

On-grid or Grid-tie solar systems are by far the most common and widely used by homes and businesses. These systems do not need batteries and use common solar inverters and are connected to the public electricity grid. Any excess solar power that you generate is exported to the electricity grid and you usually get paid a feed-in-tariff (FiT) or credits for the energy you export.

Modern hybrid systems combine solar and battery storage in one and are now available in many different forms and configurations. Due to the decreasing cost of battery storage, systems that are already connected to the electricity grid can start taking advantage of battery storage as well. This means being able to store solar energy that is generated during the day and using it at night. When the stored energy is depleted, the grid is there as a back up, allowing consumers to have the best of both worlds.