Grid-Tied Solar System: A grid-tied solar system, also known as an on-grid or grid-connected system, is connected to the local utility grid. It consists of solar panels, an inverter, and a bi-directional meter. The solar panels generate electricity from sunlight, and the inverter converts the DC power produced by the panels into AC power for use in your home. The excess electricity generated by the system can be fed back into the grid, and you can receive credits or compensation for the energy you contribute.