Over time, three large, interconnected systems evolved in the United States. Interconnection also reduced the amount of extra generating capacity that each utility had to hold to ensure reliable service during times of peak demand. These connections allowed utilities to share the economic benefits of building large and often jointly-owned electric generating units to serve their combined electricity demand at the lowest possible cost. As the demand for electricity grew, especially after World War II, utilities began to connect their transmission systems. Evolution of the electric power gridĪt the beginning of the 20th century, more than 4,000 individual electric utilities operated in isolation from each other. Transformers at substations increase (step up) or reduce (step down) voltages to adjust to the different stages of the journey from the power plant on long-distance transmission lines to distribution lines that carry electricity to homes and businesses. Lower voltage electricity is safer for use in homes and businesses. Higher voltage electricity is more efficient and less expensive for long-distance electricity transmission. High-voltage transmission lines, such as those that hang between tall metal towers, carry electricity over long distances to meet customer needs. Power plants generate electricity that is delivered to customers through transmission and distribution power lines. Local electric utilities operate the distribution system that connects consumers with the grid regardless of the source of the electricity. A few federally owned power authorities-including the Bonneville Power Administration and the Tennessee Valley Authority, among others-also generate, buy, sell, and distribute power. The company selling you power may be a not-for-profit municipal electric utility an electric cooperative owned by its members a private, for-profit electric utility owned by stockholders (often called an investor-owned utility) or in some states, you may purchase electricity through a power marketer. The retail structure of the electricity industry varies from region to region. Other utilities purchase electricity directly from other utilities, power marketers, and independent power producers or from a wholesale market organized by a regional transmission reliability organization. Some electric utilities generate all the electricity they sell using just the power plants they own. The origin of the electricity that consumers purchase varies. These generators generally output AC power that can be used through an inverter.Electricity comes from various sources and types of providers Alternatively, it might be a good idea to invest in a backup generator. If you live in a place that doesn’t always have sunlight throughout the year, you’ll need more battery banks to prepare for consecutive days of lack of sun exposure. This electricity undergoes a conversion process into AC current using an off-grid inverter to bring power to your home.īy storing electricity in its battery bank, this system allows your home to run exclusively on energy from the sun even during the nighttime or on cloudy days. The charge controller limits the electricity stored in the battery bank and protects it from overcharging. Off-grid solar system works by taking energy from solar panels and using it to charge a solar battery via a charge controller. This system is more complicated, and therefore more expensive, compared to its grid-tied counterpart, and is made up of the following components: Off-grid systems are completely disconnected from your power utility grid relying solely on sunlight as its main energy source and making your system entirely self-sufficient. Grid-tied systems are also the more budget-friendly option since you don’t have to buy an expensive battery backup system to store excess energy. In case of insufficient solar energy, such as during nighttime or cloudy days, the inverter switches back to its grid power source. Lastly, the power meter measures the power to efficiently calculate the electricity generated by both the grid and solar system. The inverter turns DC into AC (alternating current), which runs through a switchboard to power your home and appliances. The system starts with its solar panels that harvest and turn sunlight into DC (direct current). Grid-tie inverter (GTI) or microinverters.This system is made up of these components: Its intelligent design allows it to know when power is available and when it’s not – synchronizing power delivery with grid power. Grid-tied solar systems work with your home’s power supply to deliver as much energy as possible. Sometimes called on-grid or grid-feed, this system is the most popular and common in both homes and businesses.Īs its name suggests, a grid-tied solar system is linked to your local utility grid.
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