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A grid-connected photovoltaic system, or grid-connected PV system is an electricity generating solar PV power system that is connected to the utility grid. A grid-connected PV system consists of solar panels, one or several inverters, a power conditioning unit and grid connection equipment. On-grid means your solar system is tied to your local utility's GRID. This is what most residential homes will use because you are covered if your solar system under or over-produces in regard to your varying energy needs. All this means for you is that your utility system acts as your battery space.