A Builder’s Guide to Off-Grid Solar Systems and Electrical Systems

Mar 10, 2025 | LEED & Green, Magazine, Tech & Smart Home

Explore how an off-grid solar system can provide energy independence. This guide covers key components, costs, pros & cons, and builder considerations.
An off grid solar system powers this eco-friendly, fire resistant home in the remote mountains.

Building trends change with the times, and more and more homeowners are seeking energy-efficient solutions they can tailor to their needs. Solar panels have become drastically more efficient and affordable in the past few years alone, spiking in popularity.

As building plans increasingly incorporate off-grid electrical systems, now is the time to get up to speed.

This guide breaks it down for you, including an explanation of the pros and cons of off-grid systems, their main components, and some top manufacturers.

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What’s the difference between grid-tied (on-grid) and off-grid electrical systems?

On-grid electrical systems are connected to the public power grid, maintained by utility companies.
Off-grid electrical systems are entirely independent and self-sufficient, and do not rely at all on the public power grid.
Off-grid systems include a battery to store excess energy produced during the day, so that the power runs consistently at night as well. Batteries require maintenance and replacement, which is not necessary in on-grid systems. Stored power can be a benefit, as a building with off-grid electricity won’t lose power if the grid goes down in a storm.

Pros and Cons of Off-Grid Systems

Off-grid systems are a more expensive up-front investment. It’s necessary to investigate local building codes and regulations and obtain permits. In extremely rural areas, it may be cheaper to install an off-grid system than pay to install power lines leading to the grid. Off-grid systems can pay off in the long run especially if they rely on renewable energy sources like sun or wind. However, they require more work, including regular maintenance like cleaning solar panels and other components. They also require the careful planning of wattage hours used, management of the number and types of appliances which can run off it, and the number of people using electricity. Most systems are designed to be scalable, so it’s possible to add solar panels and batteries later to increase capacity.

Components of an Off-Grid Electrical System

It’s possible to purchase entire solar kits that come with all components, or to buy the individual elements separately depending on need and compile them yourself.

Power Generation System

A power generation system for a small home will range in production capacity between 1-5 kW, while larger systems can create 10 kW and more.
  • Solar Panels (Photovoltaic Modules): This is the most-used off-grid option, which converts sunlight into electricity.
  • Wind Turbine: Wind is a great option for use in areas with consistent wind.
  • Hydropower: Harness a flowing water source to generate electricity.
  • Backup Generators (Optional): Utilize gas, diesel, or propane generators as a backup power option.

Charge Controller

A charge controller regulates the voltage and current coming from the power system to safely charge the battery bank without over or undercharging it. There are two main types of charge controllers:
  • PWM (Pulse Width Modulation): Simple, affordable, fits smaller systems.
  • MPPT (Maximum Power Point Tracking): More efficient, used for larger systems and to convert green energy efficiently.

Battery Bank

Store excess energy for later use during conditions in which the system cannot actively produce power. Types:
  • Lead-Acid Batteries: The traditional choice, affordable, last about 5-10 years.
  • Lithium-Ion Batteries: More efficient, with a longer lifespan (10-15 years), and can handle deeper discharge cycles, but are more expensive.
  • Flow Batteries: A promising form of battery that stores energy in liquid electrolytes, safer than lithium-ion. They can last 30 years, but are larger and more expensive.

Inverter

Inverters convert DC electricity into AC electricity for use in household appliances. Types:
  • Pure Sine Wave Inverters: create a smooth, consistent power wave similar to grid-tied electricity.
  • Modified Sine Wave Inverters: Less expensive but with sharper changes in voltage that don’t pair well with sensitive electronics.

Electrical Panel/Distribution System

An electrical panel (also known as a breaker panel) allows you to control how and where power flows to individual circuits in the building.

Wiring and Connectors

Connect all systems safely and efficiently.

Backup Generator (Optional)

Some power systems come with a built-in backup generator that uses fossil fuels so that a building still receives power if the main generator fails. These are called hybrid systems.

Grounding System

Connects the system to the earth, to prevent safety hazards and damage from lightning, electrical faults, or short circuits.

Monitoring System (Optional)

Monitor your power levels, energy consumption, performance and more through an app.

Cost Breakdown and Return on Investment (ROI)

for an Off-Grid Electrical System

Off-grid systems are expensive, and builders must help clients justify the investment.
Estimated Costs Residential solar panel systems cost between $2 and $3 per watt on average. A small off-grid system (5kW solar with battery backup) can cost $15,000-$25,000, while a large system (10kW+ with lithium-ion batteries) can range from $50,000-$100,000+. Off-grid wind power setups typically start around $20,000 due to additional infrastructure requirements.

Financial Incentives

The Federal Solar Investment Tax Credit (ITC) allows homeowners to deduct 30% of installation costs from federal taxes. Some states also offer rebates and performance-based incentives.

Long-Term Savings

In rural and remote locations where grid extension costs can exceed $50,000 per mile, an off-grid system can be more cost-effective than running new power lines.

Builder-Specific Considerations

for an Off-Grid Electrical System

Building an off-grid system requires some additional steps including:

Permitting and inspections Each area has different rules for building permits. Some will require inspections to ensure the compliance with electrical standards, and others stipulate the necessity for power backup systems.
System design and calculations The efficiency of the system will depend on the quality of equipment, how components are configured and paired, and if the size of the system matches the power demands of the home. Homeowners often underestimate their power needs, so consider working with an off-grid system designer to accurately determine daily kW hours needed. A 1,500 sq. ft. home with basic appliances might only need a 5kW system, while a large, modern home could require 10-15kW with multiple inverters and a large battery.
Structural modifications Roof-mounted solar panels add additional weight to a building and may require further load-bearing capacity. Confirm that rafters and trusses can handle the weight. Wind power systems may need a concrete reinforced foundation. Plan to build well-ventilated protective enclosures around the system, particularly the battery, and installing fire-resistant walls.
Location and layout A solar system will need to be carefully planned to maximize power. A south-facing roof is ideal, but builders will also need to assess how much objects like trees and structures will block panels, and if they will require pole-mounting or other modifications. Wind turbines are only efficient in certain areas, and a careful analysis of the location is necessary to make sure power production will be consistent.

Manufacturers of Off-Grid Systems

OutBack Power Technologies

Arlington, WA
Specializes in off-grid and grid-tied renewable energy systems, offering inverters, charge controllers, and energy storage solutions.
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Schneider Electric Solar

Burnaby, BC, Canada
Provides solar power conversion and energy management products, including inverters and monitoring systems suitable for off-grid applications.
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Magnum Energy (Sensata Technologies)

Everett, WA
Offers a range of inverters and accessories designed for off-grid and backup power applications.
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MidNite Solar

Arlington, WA
Manufactures charge controllers, combiners, and other components essential for off-grid solar power systems.
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Blue Planet Energy

Honolulu, HI
Offers lithium-ion battery systems designed for off-grid and backup power applications.
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Zonna Energy

New Holland, PA
Distributes off-grid solar equipment, including inverters, charge controllers, and batteries, partnering with leading brands to provide high-quality products.
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Backwoods Solar

Sandpoint, ID
Specializes in off-grid solar power systems, offering design services and components such as solar panels, inverters, and batteries.
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Renogy

Ontario, CA
Provides a variety of solar panels, charge controllers, inverters, and battery storage solutions suitable for off-grid applications.
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NAZ Solar Electric

Flagstaff, AZ
Offers off-grid and grid-tied solar power systems, including components like solar panels, inverters, and batteries, with design and technical support services.
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Sungold Solar

Shenzhen, China (USA Office)
Offers off-grid and grid-tied solar power systems, including components like solar panels, inverters, and batteries, with design and technical support services.
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BOXED Solar

Ontario, CA
Provides complete, prewired off-grid solar systems, including energy storage solutions with various battery options.
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Creative Energies Solar

Lander, WY
Specializes in designing, installing, and servicing off-grid solar projects, offering customized solutions for unique energy needs.
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Solarland USA

Ontario, CA
Manufactures high-quality off-grid solar panels and components, focusing on reliable and efficient solar solutions.
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The Solar Store

Tucson, AZ

Provides off-grid and solar water pumping solutions, offering system design assistance and a range of solar products.

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P.S.

Have you built an off-grid electrical system? Where did you source the components, and how do you think the pros and cons compared?

Share your experiences with Built for Home on social. You may even get featured in a future Built for Home article!