Humans have been harnessing the sun’s power since the 7th Century B.C. Today, generating and using solar energy has come a long way since the first solar collector was developed in 1767, and many residents are relying on off-grid solar systems to meet their home energy demands. So, what is an off-grid solar system and how does it work?
Read on to discover how these standalone power systems reduce your carbon footprint and end your reliance on a utility company, giving you complete energy independence.
What is an Off-Grid Solar System?
An off-grid solar system is a self-sufficient renewable energy system that generates electricity from the sun’s rays using solar cells, also known as photovoltaic cells. Unlike traditional, on-grid solar power systems, off-grid systems do not connect to the national utility grid. Instead, these systems require energy storage solutions, such as batteries, to store excess energy for use during periods of low or no sunlight.
Off-grid solar systems are an ideal solution for remote locations or areas where connecting to the grid is not cost-effective. They offer a sustainable and reliable energy source that can reduce electricity bills and environmental impact while providing energy independence and security.
How Does an Off-Grid Solar System Work?
Also known as standalone power systems (SAPS), off-grid solar systems provide a complete package to generate, store, and supply solar energy with no help from outside resources like the grid.
The sun shines on your solar panel, which absorbs the light through photovoltaic cells. The photovoltaic cells lay between layers of semiconducting material like silicon. When hit with sunlight, the material energizes, creating an electric field.
Your solar panels generate direct current, sending it to a solar charge controller that regulates electrical flow. The DC power passes through a solar inverter and converts into alternating current – AC power – to be used by your home or stored in your solar battery system.
Cost of an Off-Grid Solar System
Off-grid solar systems provide clean power while storing enough reserve energy to power your home for three to five days. You can expect to spend between $32,500 to $69,500, or a national average of $51,000, to take your home off-grid.
An off-grid solar power system generates electricity for your home without relying on the grid. Costs vary depending on the brand, installation size, type, setup, location, and labor rates.
Off-Grid Solar System Cost Estimator By Size
The cost of your PV system directly relates to size, which is determined by the number of kilowatts (kW) of energy production your system needs to output to cover your home’s energy consumption demands.
Your climate also plays a role in determining your off-grid solar needs. Most homes require 7 kW to 10 kW systems to cover energy demands in most climates. Small arrays less than 5 kW are best for small installations, including RVs and one-room cabins, while arrays over 15 kW power large homes and farms.
Let’s look at some common sizes and their average costs:
| Off-Grid Solar System Size | Average Cost Before Incentives *includes materials and labor |
| 3 kW | $30,000 – $35,000 |
| 5 kW | $40,000 – $45,000 |
| 10 kW | $70,000 – $80,000 |
| 15 kW | $85,000 – $100,000 |
| 20 kW | $100,000 – $120,000 |
Off-Grid Solar System Cost Estimator by Component
Off-grid solar systems comprise three basic components. A simple way to estimate the cost of your new system is based on the combined price of each component.
| Off-Grid Solar System Component | Average Cost Before Incentives *materials only |
| Solar Panels | $7,500 – $24,000 |
| Inverter | $4,350 – $11,350 |
| Lead Acid Battery Storage System | $4,000 – $7,000 |
| Lithium-Ion Battery Storage System | $12,000 – $19,500 |
| Charge Controller | $525 – $735 |
| Total with Lead Acid Battery System | $16,375 – $43,085 |
| Total with Lithium-ion Battery System | $24,375 – $55,585 |
On-Grid vs. Off-Grid Solar Systems
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Most residential solar installations are grid-connected. Homeowners install grid-tied systems to reduce traditional power consumption and monthly utility bills. Their homes draw power from the grid on cloudy days or during power outages unless their system is connected to an alternative power source, like a battery bank or generator.
Off-grid systems are completely independent of the electrical grid. Without a combination of batteries, wind turbines, or generators, these homes have no source of power during low-sun hours. Contractors size off-grid systems to meet the maximum energy demands of a home.
Overall, off-grid systems are larger and more expensive, but they offer living flexibility, while on-grid systems are less expensive and provide peace of mind. Some other key differences and similarities include:
| On-Grid Solar System | Off-Grid Solar System | |
| Connection Type | National grid | Self-sufficient |
| Cost | $15,000 – $26,000 | $32,500 – $69,500 |
| Durability | 25-30 years | 25-30 years |
| Energy Storage | Not required; add-on | Required |
| Incentives | Solar tax credit; local net metering policies | Solar tax credit |
| Length of Installation | Less than 1 day | 3+ days |
Pros and Cons of an Off-Grid Solar System
Off-grid solar systems offer 100% self-sufficiency. They are expandable, work in the most remote areas, and offer backup power during non-producing hours. Unfortunately, the technology is expensive, complex to install, and high maintenance.
| Pros | Cons |
 Versatile Self-sufficient Cost-saving Expandable | ✘ Expensive ✘ Complex installation ✘ High maintenance ✘ Limited power supply |
Hybrid Solar Systems
Hybrid systems combine off-grid solar systems with solar storage solutions or additional power-generating systems to increase flexibility and reliability. Hybrid solutions often include a backup generator or wind turbine to reduce battery reliance during extended periods of low to no sun.
These costly systems are the best option for homeowners looking to maximize their energy independence and security.
| Alternative Energy Source | Average Cost |
| Wind Turbine | $5,000 – $11,000 |
| Back-Up Generator | $10,000 – $20,000 |
Is an Off-Grid Solar System Right for Your Home?
When compared with traditional solar systems, gaining energy independence requires significant upfront costs. However, off-grid systems are worth considering if you live in a remote area with a lot of sunshine.
When deciding whether an off-grid solar system is right for your home, consider the following factors:
- Budget: Off-grid solar systems are expensive to install, but they eliminate grid reliance and utility bills.
- Location: Off-grid systems are best suited to remote areas where connecting to the national grid is not possible or cost-effective. Many locations have governing net metering policies to incentivize grid-tied systems.
- Climate: The amount of sunlight your home receives directly affects the power generation capabilities and performance of your solar array.
- Backup power: Off–grid systems rely on storage alternatives, such as batteries and hybrid power solutions, to store excess power and meet energy needs.
FAQ About Off-Grid Solar Systems
Yes. Off-grid solar systems are eligible for government tax credits. Systems installed between 2023 to 2032 are eligible for a 30% credit. There is no maximum amount a homeowner can claim and expenses include:
• Solar panels or cells
• Contractor labor costs, including permitting fees and inspection costs
• Balancing equipment, including wiring, mounting equipment, and inverters
• Energy storage devices with a capacity rating of 3 kilowatt-hours or greater
• Sales tax on expenses
Many states also have policies governing renewable energy, offering their own incentives and rebates.
Off-grid solar panels maintain maximum output and efficiency for 25 to 30 years. Longevity depends on the brand, and providers offer their own warranties.
Be sure to check with your solar manufacturer to understand your warranty.
Off-grid solar systems require between eight to12 batteries to maintain complete independence and prepare for emergencies.
No. Solar systems are an advanced technology and require professional installation and wiring. Improper installation could void the manufacturer’s warranty and lead to leaks, mold, and water damage.
Off-Grid Solar System Installation Next Steps
Solar is shining bright, and clean energy is the way of the future. Just one hour of sunlight is equivalent to one year’s worth of solar energy for the entire planet.
If you are ready to claim your energy independence, contact one of our solar pros to learn about the solar process and the materials you need to take your home off-grid.
Main Image Credit: Gary Webber / Canva Pro / License
