How Solar Energy Works
Complete guide to understanding solar power systems. Learn how solar panels work, compare on-grid vs off-grid vs hybrid systems, and find the right solution for your home or business.
What is Solar Energy?
Solar energy is electricity generated from sunlight using solar panels. In the Philippines, where we enjoy abundant sunshine year-round, solar power offers a clean, renewable, and cost-effective alternative to traditional grid electricity from coal or natural gas.
When sunlight hits solar panels (also called photovoltaic or PV panels), it creates an electrical current. This electricity can power your home, business, or resort — reducing or even eliminating your Meralco bills while helping the environment.
Days of Sunshine Yearly in PH
Years Solar Panel Lifespan
Typical Electric Bill Savings
How Do Solar Panels Work?
Solar panels absorb energy from the sun's rays
Convert sunlight into DC (direct current) electricity
Converts DC to AC (alternating current) for home use
Powers your appliances, lights, and devices
It's that simple! During the day, your solar panels generate electricity that powers your home. What happens at night or when it's cloudy depends on which type of solar system you choose — which we'll explain below.
Types of Solar Systems
There are three main types of solar systems. Each works differently and suits different needs. Let's break them down.
On-Grid (Grid-Tied) Solar System
Most Popular & Affordable Option
How It Works:
Your solar panels are connected directly to the utility grid (like Meralco). During the day, solar panels power your home. Any excess electricity is sent back to the grid, earning you credits through net metering.
At night or on cloudy days, you draw power from the grid as usual. Your monthly bill is reduced by the amount of solar energy you generate.
Best For:
- Urban homes with stable grid connection
- Budget-conscious homeowners (lowest upfront cost)
- Areas with reliable utility power
- Makati, Manila, Quezon City, and major cities
Advantages:
- ✓ Lowest initial investment
- ✓ No batteries needed (lower maintenance)
- ✓ Net metering credits reduce your bills further
- ✓ Fastest return on investment (3-5 years)
- ✓ Simplest installation
Limitations:
- ✗ No power during grid outages
- ✗ Depends on utility company for nighttime power
- ✗ Net metering policies vary by provider
- ✗ Not ideal for areas with frequent brownouts
💰 Typical Cost: ₱150,000 - ₱400,000 for a residential system (3-8kW)
Off-Grid (Standalone) Solar System
Complete Energy Independence
How It Works:
Your solar system is completely independent from the utility grid. Solar panels charge battery banks during the day, and those batteries provide power 24/7 — even at night or during cloudy weather.
You're completely self-sufficient. No grid connection, no monthly electric bills, no dependence on utility companies.
Best For:
- Remote islands without grid access (Coron, Siargao)
- Beach resorts and island properties
- Mountain or rural areas with no grid
- Those seeking complete energy independence
Advantages:
- ✓ Complete energy independence
- ✓ Power 24/7, rain or shine
- ✓ No monthly electric bills ever
- ✓ Works anywhere (no grid needed)
- ✓ Protected from grid outages and rate hikes
Limitations:
- ✗ Highest upfront cost (panels + batteries)
- ✗ Battery maintenance required
- ✗ Battery replacement every 5-10 years (additional cost)
- ✗ Must carefully manage energy usage to avoid draining batteries
💰 Typical Cost: ₱400,000 - ₱800,000+ for a complete system with battery bank
Hybrid Solar System
Best of Both Worlds
How It Works:
Hybrid systems combine the benefits of both on-grid and off-grid. Your solar panels charge batteries during the day, providing backup power when needed. You're also connected to the grid for extra reliability.
During outages, your batteries automatically kick in. When the grid is stable, you can choose to use solar + batteries or draw from the grid, giving you maximum flexibility.
Best For:
- Areas with unreliable grid (frequent brownouts)
- Businesses requiring uninterrupted power
- Hospitals, clinics, restaurants with critical loads
- Anyone wanting backup power AND bill savings
Advantages:
- ✓ Power during outages (battery backup)
- ✓ Reduced electric bills (grid connection)
- ✓ Maximum flexibility and reliability
- ✓ Can expand batteries as needed
- ✓ Best for Philippine conditions
Limitations:
- ✗ Most expensive upfront investment
- ✗ More complex installation
- ✗ Battery maintenance still required
- ✗ Longer return on investment period
💰 Typical Cost: ₱350,000 - ₱700,000 for residential hybrid system
Quick Comparison
On-Grid
Off-Grid
Hybrid
| Feature | On-Grid | Off-Grid | Hybrid |
|---|---|---|---|
| Upfront Cost | ₱150-400K | ₱400-800K+ | ₱350-700K |
| Power 24/7 (Night) | ❌ (Uses grid) | ✅ (Batteries) | ✅ (Batteries/Grid) |
| During Grid Outages | ❌ No power | ✅ Full power | ✅ Battery backup |
| Monthly Bills | Reduced 40-80% | ₱0 (No grid) | Reduced 50-90% |
| Batteries Needed | ❌ No | ✅ Yes (Large) | ✅ Yes (Medium) |
| Maintenance | Low | Medium-High | Medium |
| Net Metering | ✅ Yes | ❌ No | ✅ Yes (Optional) |
| Best For | Urban homes Stable grid | Islands No grid access | Unreliable grid Businesses |
Which System is Right for You?
Choose On-Grid if:
- You live in a city with reliable grid power (Makati, BGC, Manila, etc.)
- You want the most affordable system with fastest ROI
- Power outages in your area are rare or short
- Your main goal is reducing monthly electric bills
Choose Off-Grid if:
- You're on an island or remote area with no grid access
- You want complete energy independence (zero bills)
- You run a resort, eco-lodge, or off-grid property
- Grid connection is too expensive or unavailable
Choose Hybrid if:
- You experience frequent brownouts or unstable grid
- You run a business that can't afford downtime
- You want backup power AND lower bills
- You need reliable power for critical equipment (medical, servers, etc.)
Still Not Sure Which System to Choose?
That's okay! Every property is different. Our solar experts will assess your location, energy needs, and budget to recommend the perfect system for you.
Get Your Free Solar AssessmentReady to Go Solar?
Onsolar Philippines has installed over 100 solar systems across Makati, Coron, Siargao, and Boracay. Let us help you find the perfect solar solution for your home or business.