An off-grid solar system is more popular and comes with a power backup. It works independently of the grid. Most home appliances such as Fans, TV, Cooler, AC, Water Pump etc. can work through this system. For instance, a 1 kW off-grid solar system is sufficient for a 2-4 BHK house. But if you also want to run 1HP Water Pump in your home you could use a 3 kW off-grid solar system. If you are planning to run an AC then you should use a 5 kW system. For commercial setups like a shop, clinic or small mill, petrol pump a 10 kW off-grid solar system should be used.
It is the most common type of solar power system with backup. It works in day and night both, during the day, solar panel charges the battery and runs the home appliances such as Air Conditioners, Cooler, Television and submersible pump. At night, when the sun is not available, Inverter runs your home appliances using the battery power.
The on-grid solar system also known as grid tie or connected solar system. This is the most cost effective type for solar system compare to off grid and hybrid solar system for electricity saving or reduce bill.
In this solar system, solar inverter converts the DC electricity produced by solar panel into AC electricity. Which can then be used directly at home or business. If system is producing more power than is being consumed, the surplus is fed into the main electrical grid via solar net metering. At the time of electricity billing government or power provider company will adjust the exported units in your electricity bill.