There are plenty of reasons to go solar; like building independence with clean, renewable energy sources, and getting off grid in the face of increasingly expensive electricity bills.
Despite the increased interest in solar over the years, there is still some confusion about what ‘going off-grid’ actually means and why you should choose this over grid-tied options. We’ve created this guide to help you understand 5 key differences between off-grid and on-grid solar systems.
1. Energy Independence
The most significant difference is the degree of independence you have with each system.
Off-grid solar systems are independent. On-grid solar systems are not.
On-grid (or grid-tied) solar systems are physically tied to WA electrical grids. Typically, “on-grid” solar means having solar panels with no battery storage system – meaning at night, and on days the sun isn’t shining enough to generate significant energy, you will be vulnerable to outages from external forces or maintenance. Hybrid solar systems may have some battery storage – these are more formally known as solar-plus-storage systems.
An example of vulnerability to grid outages: More than 22,000 homes and businesses across Perth and the Wheatbelt were left without power for some time after a freak summer storm in 2024. There were 34,000 without power at the peak of the event, with some unable to even call Triple-0 due to outages in the network.
When you have a fully off-grid system, you have true energy sovereignty. You’re not hooked into the grid at all, and with that comes immunity to grid events – provided you have correctly sized battery energy storage systems to back you up, you will always have power.
2. Battery Requirements & System Architecture
The architecture of the system itself is different between on-grid solar systems and off-grid ones, because they function in different ways.
Off-grid systems have more components because they must also store backup power. Grid-connected solar systems can be pretty light on components by comparison because they are typically designed for generation only. For on-grid or hybrid systems, storage is an optional upgrade because the grid acts as the “battery” during down times.
Fully off-grid systems require solar batteries to store excess power. Batteries allow you to use your solar when the sun isn’t shining, and a backup genset acts as risk management in case of prolonged periods where your system can’t generate more energy. The best solar battery for your off-grid setup will depend on your energy consumption (a home will have different energy needs to a milking shed, which is different again to a mining site).
3. Cost over Time
If you’re looking for a better return on your investment, off-grid solar systems will win every time. Sure, the up-front cost may be higher – but once you make your investment back in energy savings, you’ll enjoy years of free, clean energy.
On-grid solar systems take longer to ‘pay off’ because you’re not making as significant savings… and the energy bills will keep coming indefinitely, because you are still reliant on the utility grid.
Cost Comparison: Off Grid Systems vs On Grid Solar
| Off-Grid Solar Systems | On-Grid Solar Systems | |
| Up-front cost | Depends on the scale of the solar system – large commercial systems can be $100k+ | Solar panels (PV) + inverter typically cheaper; no large battery required |
| Network fees | $0 (no grid) | Ongoing supply charge, with tariffs rising over time |
| Export revenue | N/A | REBS buyback scheme only ≈ 7.135 c/kWh (closed to new systems) |
| Long-run total | Higher day-1, but often lower 10-year net present value once correctly modelled | Lower day-1, but costs escalate with usage and tariff hikes |
For rural properties and remote locations, the cost of getting a grid connection can be exorbitant. Remote WA line-extension costs can exceed $120k for large loads before even a single kWh is consumed. And, you’re still committed to buying energy from an electricity provider after all that.
If your grid connection quote is more than your solar budget, then off-grid solutions may already be cheaper. The actual set up cost for off-grid systems will depend on the size of your system (how much energy you need for everyday operations).
Related: How Much Does a 10kW Off-Grid Solar System Cost?
4. Versatility, Scalability, and Remote Suitability
With grid-tied solar systems, the configuration of your system will always be constrained by the physical limits of the grid. This can impact:
The scale of your system
Off-grid solar systems can be scaled modularly to power anything from shearing sheds to mining camps. If you have grid access, your solar system may only be able to have certain inverters to reduce excess solar energy going back to the utility grid.
Where you set up shop
Building grid connections to remote places can be expensive – and at higher risk of power outages as the distance back to the main grid means more opportunity for weather or animals to affect the cable. With off-grid systems, it doesn’t matter whether you are urban or remote because you’re creating your own energy hub.
Where you can generate electricity
Off-grid systems can be designed to be moved where you need them. While not all systems will be designed this way, having skid-mounted solar systems will allow you more control over where you need your hub – and allow you to start generating your own electricity with minimal installation, which is ideal for remote locations.
Your savings on electricity
By limiting what you can export, your utility company must also limit what they will ‘buy back’ from you. Net metering is a safety measure for electricity grids as they must avoid excess solar power flooding in from across the network. This excess energy is not something off-grid users have to worry about.
5. Environmental Impact
Off-grid solar solutions provide truly clean energy
There’s no way around it: Remaining tied to the utility grid means you’ll be using fossil fuels even after ‘going solar’.
2024 Australian Energy Statistics indicate that approximately 65% of energy used in the South West Interconnected System (which serves the majority of WA’s population) was generated from fossil fuels like coal and gas.
Having completely off-grid solar system is the only way to guarantee that your energy is coming from a renewable source. This helps reduce your site’s carbon footprint, while providing long term ROI.
Reducing impact on local ecosystems
The structure of a grid-connected system can impact the immediate environment directly. The overhead powerlines and poles required for on-grid connections pose a risk to wildlife through electrocution. Sometimes if birds or animals come into contact with a pole-top, the event may ignite vegetation around the site.
Keeping vegetation clear helps with keeping fire risk down, but that has its own danger to wildlife as clearing away trees and the like can disrupt local ecosystems.
By contrast, off-grid systems can be designed to integrate with the environment and reduce your site’s ecological footprint.
Solar energy: Which is the right solar system for you?
We would argue that the best systems are ones that don’t depend on the public electricity grid. An off-grid solar system produces clean energy, is virtually free once the initial investment is returned, and gives steady, uninterrupted access to electricity even when the sun isn’t shining.
Why take the risk on WA’s ageing grids, when you could build something much more robust?
Rebate considerations (federal and state)
Residents, community organisations and small businesses wanting to move to solar electricity models may be able to access rebates for solar battery installation. Always check to make sure you are eligible according to each program’s criteria prior to installation as they have different rules.
For example:
- The Federal Solar Battery Rebate supports off-grid solar systems as well as on-grid systems, though the on-grid systems must be Virtual Power Plant (VPP) ready.
- The WA Residential Battery Scheme requires all systems to be VPP ready.
Statewide delivers complete energy independence
With over 25 years of WA-wide projects across agricultural, commercial, industrial, and mining sectors (not to mention state-of-the-art residential systems for tree-changers and those wanting to get off the grid), we know a thing or two about setting up the best off-grid solar power systems.
We use the best suppliers to build your bespoke system, so you can enjoy the benefits of being completely energy independent for years to come. If you’re ready to trade grid reliance and ever-increasing energy bills for clean, reliable energy, why not contact us today to find out more.
