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How Does Grid-tied Solar Works?

Grid-tied simply means this type of system is connected to, and relies on, the existing utility electrical grid as an essential system component.

An array of solar panels is installed (usually on the roof) and connected to the electrical system. The electricity is used first to power the home’s immediate electrical needs. When those needs are met, the additional electricity will head out to the grid through your utility meter.


In Singapore, we have “net energy settlement.”

The utility company tracks the energy sent into the grid from your solar production and you get to use that production later. For each kwh you send into the grid during excess production you will receive a set kWh price for additional production sent to the grid. This may or may not be equal to the amount charged per kWh at a later time. In other countries like Malaysia, utilities have different rules regarding how solar energy is compensated. For each kwh you send into the grid during excess production you get 1 kwh to use later when you need it (like at night).. The utility only bills you for the “net” amount of energy pulled from the grid.


Grid-tied solar systems are extremely popular because they guarantee your investment.

  1. You’ll see savings on your immediate electrical costs as the solar is 1 activated and starts producing electricity.

  2. Solar system owners are protected against increasing utility prices on electricity for the life of the system. Generally, this is a minimum of 25-30 years, and there are many systems still working that are 40+ years old!

  3. Solar increases in the property’s value and resale appeal – as soon as you have solar, this “solar premium” takes effect.


Determining how best to take advantage of the benefits of solar while navigating a complex utility landscape is what solar installers excel at.

Solar Era has the experience and expertise to help you take advantage of all the benefits solar has to offer no matter where you live. We are here to answer questions, make recommendations, and be a resource for you—before, during, and after the completion of your project.


Want to know more? We are here to assist you!

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