What Is A Hybrid Solar System? June 2024

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What Is A Hybrid Solar System? June 2024

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Leonardo David is a writer and energy consultant who has worked on projects funded by the Inter-American Development Bank. An electromechanical engineer, he has written about solar energy and the electrical power industry since 2015.

Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.

A hybrid solar system is capable of operating on-grid and off-grid. Under normal conditions, a solar photovoltaic (PV) system is connected to your utility grid so you can use both power sources simultaneously. But a hybrid PV system can also operate independently, providing power during blackouts.

We at the MarketWatch Guides team have analyzed the best solar panels to help you determine the best option for your home energy needs. Read on to learn more about the benefits and costs of a hybrid system.

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A hybrid solar system can switch between two operating modes: grid-tied and off-grid. This is achieved by combining two key components:

You can use only traditional solar power systems when connected to the grid. Solar panels cannot always provide a stable power supply for home appliances. If a cloud passes by, there will be an inevitable drop in power generation. The same concept applies to nighttime when no sunlight is available. In this case, you can cover any gaps in solar output using grid energy.

Hybrid solar systems use a battery system to provide energy even when your panels are disconnected from the grid. If the electricity output of your solar panels decreases due to cloudy conditions, a charged solar battery can sustain a stable voltage and power output. In other words, hybrid PV systems can interact with the local electricity grid but don’t depend on it.

A hybrid solar power system uses a special type of inverter, called a hybrid inverter, capable of managing PV panels and batteries simultaneously. This type of inverter accomplishes several functions:

You can use your hybrid system’s battery even when connected to the grid. For example, if your battery charges during the day, you can use that energy at night instead of paying for grid power.

There are two ways to add energy storage if you have a grid-tied solar system with a traditional inverter. You can upgrade to a hybrid inverter capable of handling batteries, or you can leave the existing inverter in place and install a separate battery inverter.

A hybrid solar system costs between $20,000 to $40,000 on average, according to the Florida solar company PES Solar. However, costs may vary depending on your installer, equipment, number of solar batteries and location.

Generally, solar systems without battery storage cost $15,000 to $20,000. A battery can add around $10,000 or more to your total system cost — for example, the Tesla Powerwall costs $11,500 with installation. With a single battery, system costs may run closer to $26,500 to $31,500. However, you may need more than one battery depending on your energy usage, which will increase your costs.

You can lower the cost of your solar system by taking advantage of incentives, like the 30% federal solar tax credit and local rebates. Find out what state and local incentives are offered in your area using the dropdown below.

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The main advantage of a hybrid solar system is flexibility — you have the features of grid-tied and off-grid systems in a single installation. Other benefits include:

When using stand-alone solar panels, you can only use generated electricity during the day unless you have a battery or rely on grid power. On the other hand, a hybrid solar installation can operate as a 24/7 power supply, covering your energy consumption day and night. An installer can size your solar array to cover your daytime consumption and generate additional energy you can store in a battery for later use.

Most states have net metering programs that allow you to send excess power to the grid in exchange for billing credits. However, many net metering programs only give partial credit for excess energy, while a hybrid PV system saves the full value of each kilowatt-hour of electricity.

Since a hybrid solar system is equipped with energy storage, it can provide backup power during electricity outages. You cannot use a grid-tied solar system in the same way since PV modules alone cannot provide a stable voltage.

Even if you live in a place where power outages are not frequent, a hybrid solar system gives you energy independence. For example, if you pay a time-of-use (TOU) tariff with higher electricity prices during peak hours, you can go off-grid during peak rate times.

Traditional solar systems only qualify for solar incentives, while energy storage systems are also eligible for energy storage incentives. You can also receive a higher federal solar tax credit if you install a hybrid solar system — you can claim 30% of solar costs plus 30% of battery costs against your federal tax burden.

In locations without a favorable net metering policy, a hybrid solar system can save you more money than a traditional solar installation. For example, California recently introduced the Net Energy Metering 3.0 (NEM 3.0) policy, which drastically reduces power bill credits for grid-tied solar systems. In this case, it makes more sense to store energy for later use instead of sending it to the grid.

A hybrid solar system uses many interacting components, including:

High-quality residential solar panels can last for more than 25 years. Solar inverters and battery systems have a typical service life of 10 to 12 years, so you will eventually need a replacement over the lifespan of your system.

Battery storage is optional for grid-connected solar systems, but necessary for off-grid operation. There are two main ways to integrate a battery bank with a solar panel system: you can use a hybrid inverter or install a separate battery inverter.

A hybrid inverter can convert the electricity output of a solar array from DC power to AC power while managing the charging cycle of a home battery. This configuration is called a DC-coupled system since the solar panels and battery interact through the DC side of a hybrid inverter. The LG Chem RESU is an example of a DC-coupled battery.

If you already own a solar power system and your existing inverter is not compatible with energy storage, you can simply add a solar battery with a dedicated inverter. This is called an AC-coupled system since there is no DC connection between the panels and the battery. The popular Tesla Powerwall is an AC-coupled battery.

The term “hybrid solar system” typically describes a solar array and battery in a DC-coupled configuration. The term is not commonly used for AC-coupled systems.

Going off-grid is possible when you combine your solar panels with an energy storage system. However, there are several benefits to staying connected to the grid:

The interconnection requirements for home solar systems vary depending on your location and the electric utility company. However, power companies demand a professional installation by a licensed contractor, which means DIY solar systems are not eligible for grid connection. Your solar installation must also comply with IEEE 1547 and UL 1741 standards.

The best solar companies are familiar with interconnection requirements across the U.S. and can ensure your solar project is installed and approved for use without hassle.

A hybrid solar system can cover the energy needs of your home during normal conditions, and it includes a backup battery you can use during power outages. The idea of going fully off-grid with solar energy can seem tempting, but a hybrid PV system offers a better return on investment for homeowners. You can achieve energy independence while participating in net metering and other solar incentives only available for grid-tied systems.

Generally, hybrid solar systems cost $20,000 to $40,000 on average. While costs may run higher than a traditional solar array without battery storage, you may be eligible for additional incentives. We recommend getting free quotes from at least three providers before deciding on the right solar system for your home.

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We recommend a hybrid solar system instead of going fully off-grid. A hybrid system offers a higher return on investment and a shorter payback period since you can participate in net metering programs and claim more solar incentives.

A traditional solar PV system must synchronize with the grid voltage, and it cannot operate when disconnected from the grid. A hybrid solar system is capable of operating under both modes — grid-tied and off-grid.

A hybrid solar system can use the grid as a backup at night or on cloudy days. This type of system can also benefit from net metering and other programs exclusively for grid-tied panels. At the same time, a hybrid system can operate independently during blackouts, just like an off-grid system.

The exact price of a hybrid system depends on the installed capacity of the solar array and battery system. Based on our March 2023 survey of 1,000 homeowners with solar, the average cost of a system is $2.85 per watt. This means you can expect to pay around $17,100 for a 6 kilowatt (kW) solar installation. A battery capable of operating off-grid can add over $10,000 to your project budget, bringing the total price closer to $27,100.

You can lower your overall system cost by claiming incentives like the 30% federal tax credit.

We closely evaluate solar installation companies with a focus on the factors most important to homeowners like you. We based our solar company methodology on input from multiple homeowner surveys, discussions with industry experts and research into the renewable energy market. Our review process involves assessing each company on the following criteria, which we then use to calculate a rating out of 5 stars. Cost and payment options (20 points): Cost is one of the most important factors when installing a solar energy system. Solar providers that offer cash purchases and in-house loan financing earn full points in this category. Companies also receive bonus points for offering solar panel leasing or power purchase agreements (PPAs). Services (20 points): In addition to solar installations, companies offering backup battery and electric vehicle charger installations, energy efficiency audits and system monitoring earn the most points in this category. Companies can also receive points for completing installations in-house, as opposed to using third-party contractors. Reputation (20 points): To assess the reputation of each company, we consider Google star ratings, Better Business Bureau (BBB) scores and reviews, and NABCEP certification status . We also look at customer complaint rates on sites like the BBB and weigh how the company responds. Warranty (15 points): We verify that each company offers workmanship, product and performance warranties on all of its solar installs. A provider earns more points for extending warranties that meet or exceed industry standards, including 10 years for system workmanship and products and 25 years for panel performance. Customer Support (10 points): Solar companies that offer virtual consultations, a mobile app, 24/7 customer support and high customer satisfaction with backend support earn the most points in this category. Industry Experience (10 points): Providers with 10 or more years of experience in the solar installation industry earn a perfect score in this category. Sustainability (5 points):To measure sustainability, we assess each company based on whether it shares a detailed sustainability statement or ESG disclosures on its website. We also conduct research to see if companies offer end-of-life panel disposal programs or have eco-friendly community partnerships.

If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com.

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