ODYL | Premium Quality Glulam/CLT House
Off-grid or on-grid energy supply?
Advantages and disadvantages explained
Solar power is the most popular and cheapest renewable energy source, thus the below focuses on off-grid and on-grid options based on solar energy.
Advantages and disadvantages of OFF-GRID housing
+ Advantages | – Disadvantages |
Energy independence. Can be set up everywhere. | Contingency. What If the sun is not shining? |
Reduced energy bills. The pay-back period of solar panels is on average between 5-8 years (some claim even 3 years). The life span average of solar panels is 25-30 years. This means savings up to 25 years. | High cost of solar panel batteries. It typically ranges between €6000 – €15000 for a private house. In addition to the cost, the life span of batteries is between 5-15 years which means replacing them at some point. |
Relatively low cost of installation. Connecting to the grid can result in higher bills than installing solar panels to the roof. | Solar panels work best in direct sunlight. What if there are trees in front? Fortunately, there are technologies which also work with shade, but direct sunlight is by far the best option. |
Sustainable. Renewable energy. | Solar panels are currently a pain to recycle. The technologies are getting there though. |
Nice design. New designs for solar panels for the roof look great, one cannot make a difference between a roof with or without solar panels. | Maintenance. Keeping an eye on the system as a whole is needed. |
Cheaper land and more options. There are more plots without utility connections and those can be considerably cheaper. The price difference can make up the initial investment of going off-grid. | Water treatment system needs to be solved together with energy which adds extra costs. Read more about independent water supply. |
Overall, the industry for solar power is developing quickly, competition is increasing, prices are decreasing and technologies are constantly becoming more efficient. Solar energy in Europe is expected to represent at least 36% of the total electricity production by 2050, which is a major increase from the 5% in 20211.
There are many factors to consider and trade-offs to be made when going totally off-grid, but in the big picture, solar energy is environmentally more sustainable and can result in considerable savings.
Advantages and disadvantages of on-grid housing
+ Advantages | – Disadvantages |
Consistency | Occasional power outages. |
Easy to maintain | Dependency on external factors which can influence energy market prices considerable (2021-2022 energy crises example). |
Easy connection to the grid if it is available. Low cost of maintenance. | Possible high cost of connecting to the grid dependent on the proximity of the nearest power lines. |
Advantages and disadvantages of ON-GRID SOLAR systems
+ Advantages | – Disadvantages |
Affordable. No need for an expensive battery system. | Expensive if the power lines are distant. |
Net metering. Sell unused energy back to the grid. | Buying from the grid is approximately 50% more expensive that selling to the grid. |
Reduces the environmental contamination caused by batteries (if they are not applied) | Buying from the grid is a trade off – the energy from the grid also comes from somewhere. |
How to decide which solar energy strategy is best for you?
Here is a list of questions that need answers before a decision on solar strategy is made:
1. Plot location
How many sunlight hours are there throughout the year?
2. House location
Is there only direct sunlight or also some shadow? Should the panels be on the roof or as a solar park?
3. Possibility and cost of connecting to the grid?
This is a major factor to consider when calculating the best return on investment.
4. Surface area of the house
This is important to know if heating and/or air-conditioning is going to be needed. How many months per year would heating and air-conditioning be used?
5. Full list of appliances that need to be connected and their energy usage
This list is long: heating and air-conditioning related equipment, water heating and treatment equipment, ventilation equipment, kitchen appliances, cleaning appliances, TV, electric car etc. In addition, is a smart house solution being used (it can save up to 20% of energy use)?
6. Energy usage
How many days per week is the house in use and how many hours (e.g., 9 am – 6 pm not in use). How many people use it on average?
7. Are there alternative energy sources available?
Does the house have a fire place or other source of alternative energy (e.g., diesel generator). Would you be willing to spend some days with live fire and candles only if the sun would not be shining and batteries need refilling?
Based on the above information it is possible to calculate the approximate initial cost and return on investment of each option and analyse the different solutions to choose the optimal one.