How to Tell the Difference between On-grid, Off-grid, and Hybrid Inverters

Dec 1, 2025

With increased awareness about climate change, everyone is looking for planet-friendly options to eco-optimize their household. Sustainable power solutions are good for our world as well as our pockets. Easy to install, they reduce our carbon footprint by a margin and have high long-term returns on investment. 

However, choosing from the various solar inverter types can feel overwhelming, especially without a clear understanding of how they function. The wide range of types of solar inverters available in the market often leaves homeowners confused about what suits their needs best.

In this blog, we’ll simplify the decision-making process by explaining the types of inverters for solar from the ground up. We’ll also clarify the difference between on grid off grid and hybrid solar system, helping you compare performance, cost, and usability before making a purchase.

Understanding the Basics of  Solar Inverters 

As promised, let’s start from the beginning.

The primary function of an inverter is to convert the DC charge generated by the solar panels into AC electricity. The raw solar power from the panels is of exponentially higher voltage than that we use in household appliances. The inverter’s job is to match the voltage of the power coming from panels with that of the electricity grid. 

Your location, the electricity cost, and the frequency of power outages in your area are the first things to be factored in when deciding on a suitable power backup or energy system. Here’s why: 

Location: The amount of sunlight received by solar panels differs between regions. A high solar output reduces battery dependency, while a low solar output increases the same.

Electricity Cost: If you live in areas with high electricity costs, investment in an inverter with smart battery options is a profitable thing to do. For example, a hybrid inverter sends back surplus energy from the battery to the utility grid. The excess units are adjusted in your monthly electric bill. 

Subsequently, if the electricity cost is lower, an inverter that fulfils your needs is adequate.

Frequency of Power Outage: Certain solar inverters depend on the electrical grid system to operate, while some can function independently. If your area experiences frequent power outages, an inverter independent of connection to the utility grid is the practical choice.

Choosing the Best System for Your Needs

Having a grip on the difference between solar inverters precedes a quality purchase decision. Here’s what you need to know about types of solar inverters:  

  1. On-Grid System

Commonly known as the “Grid-tie” system, this type of inverter draws DC power from solar panels and converts it into AC power to be fed into homes. Connection to the electricity grid is central to how on-grid inverters work: 

  • To synchronise the voltage and frequency of the AC output to match the grid.
  • To safely feed  the excess solar power to the grid

This type of solar system, thus, cannot operate in case of a power outage.

Due to connection to the utility grid, any excess energy generated by the panels is fed to the grid, earning net metering credits. Alternatively, at night or during periods of low sunlight, the grid compensates for the power demand.

Pros

  • Cost-effective
  • Easy to install and maintain
  • No additional investment required for battery backup
  • Excess energy directed to the grid  reaps credit

Cons

  • Unsuitable for areas with frequent power cuts
  • Cannot supply power during the night
  1. Off-Grid System

Equipped with battery banks to store excess energy from solar panels, this type of solar system operates independent of the main grid.

Charge controllers to regulate the voltage and frequency of power being fed into the battery are fundamental to how off-grid inverters work. Functioning similar to the electrical grid, they limit overcharging of the backup system for battery health. Energy from the inverter satisfies the household demand as well as supplies stored power when the panels don’t generate electricity.

Pros

  • Shields against grid failures or power outages
  • Self-reliant, it does not depend on the electricity grid
  • Best suited for rural areas

Cons

  • Rendered useless in the absence of power generation from panels
  • More expensive than an On-grid system
  • Battery banks have a high carbon footprint
  1. Hybrid System

A combination of both the on-grid and off-grid systems, this type of solar system is built with the best of both worlds. Along with a connection to the main electrical grid, it also comes with battery backup for energy conservation. 

Advantages of hybrid inverters lie in their duality of operation. Alternately known as the “Grid-Interactive System”, it’s an advanced device that functions as an off-grid system during power interruptions. When the power comes back on, it automatically switches to acting as an on-grid system. The hybrid system is best suited for giant commercial projects or businesses.

Pros

  • Battery backup and credit from surplus energy
  • Maintains an uninterrupted energy supply 
  • Can satisfy heavy load demands

Cons

  • Expensive
  • High maintenance
  • Only profitable as a long-term investment

Best Livfast Offerings of Solar Inverters with Superior Features

When selecting from a vast array of options, a critical understanding of the application and dependability of the different types of solar inverters helps one make the most informed choice. Here are some Livfast models that can serve you best: 

  1. Solar Grid Interactive Inverter LFS103GIS

Fitted with state-of-the-art MPPT (Maximum Power Point Tracking) technology, the LFS103GIS extracts maximum DC power from your solar panels. It facilitates optimum energy consumption while guaranteeing surplus sales to the grid.

  • Capacity: 3 KW – 1 Ph
  • Maximum Recommended PV Power: 4100 W
  • Maximum DC Voltage: 550 V
  • Startup Voltage: 70 V

Feature Highlight:  Overload Capacity

Built to maintain stable, undisturbed flow, Livfast grid-interactive inverters provide overload capacities that are equipped to handle sudden spikes in the load or heavy voltage fluctuations. 

  1. Solar Grid Interactive Hybrid Inverter LFS105GIH

Combining a grid-interactive inverter and battery backup system to allow for a continued energy supply during outages or cloudy weather, the LFS105GIH is an intensive power converter for reliable energy.

  • Capacity: 5 KW – 1 Ph
  • Battery Nominal Voltage: 48 V
  • Battery Types: Sealed/Flooded/Gel/Li-ion
  • Maximum PV Power: 6000 W

Feature Highlight: Advanced I-V scanning

Wired to conduct solar panel health checks from time to time, Livfast offers a range of Grid-Interactive Inverters that require no additional equipment, just like the mentioned model. The integrated I-V scanning capabilities of the inverter allow for self-supporting performance evaluation of solar panels. 

  1. Solar 3 Phase Grid Interactive Inverter LFS350GI

Tough to capitulate, the LFS350GI uses 3 innovative MPPT setups and allows for the application of a versatile range of PV (photovoltaic) systems. They can support solar-powered irrigation, power entire remote communities, and carry industrial loads.

  • Capacity: 50 KW – 3 Ph
  • Maximum Recommended PV Power: 66500 W
  • Startup Voltage: 350 V

Feature Highlight: Superior PV Input Power

Prioritising full utilisation of the inverter’s capacity, a model with high PV input power enables efficient conversion of more solar panel power than usual. It has very low self-consumption needs and allows for maximum usage of sustainable energy.

Comparing Hybrid vs On-grid vs Off-grid Inverters

Here’s a crisp comparison between on-grid, off-grid and hybrid solar inverters:

FeatureOn-GridOff-GridHybrid
Connection to Main GridRequiredNot requiredRequired
Battery Optional/Does not require battery backup.Required. The stored power is utilised during power outages.Optional. But recommended to carry the power load during outages.
Primary FunctionReduction in electricity bills by exporting extra power to the utility gridProviding full backup Reduction in electricity bills as well as power backup during outages
Installation ExpenseLow expenseMedium, more expensive than on-gridHigh expense
Best ForHomes or areas with a reliable, continuous power supplyRural areas with frequent power outages/no powerOffices/Commercial Projects/Residential Buildings

Conclusion

With Livfast solar inverters, you get a winning combination of efficiency, adaptability, innovative tech, and reduced operational costs. You don’t have to feel doubtful anymore about your judgments of the difference between solar inverters. Explore our options and find solutions that are best for you.

FAQ's

Which solar inverters are the best?

Depending on your power needs and location, the best type of solar inverter for you might differ. However, a hybrid system complies with all conditions of maximum efficiency and solar energy usage.

Generally more expensive than on or off-grid systems, hybrid solar inverters are available in several high-yield, affordable options, too.

Solar inverters have built-in safety features and are completely safe when installed correctly and maintained well.

To extend inverter battery life, avoid deep discharges and high loads. Ensure charging inverter battery safely by following the manufacturer’s instructions and keeping the battery in a cool, ventilated space.