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On-Grid vs Hybrid vs Off-Grid Solar: Which Is Best for Malaysia?

Aerial view of solar panels on grass

An on-grid system has no battery and sends extra power to the TNB grid. A hybrid system adds a battery for night use and blackouts. An off-grid system is not connected to TNB at all. For most Malaysian homes, on-grid costs least and pays back fastest.

Three Types of Solar Systems

Every home solar system has panels and an inverter. The three types differ in what happens to the electricity you do not use at once.

FeatureOn-GridHybridOff-Grid
Connected to TNBYesYesNo
BatteryNoYesYes, large
Works in a blackoutNoYesYes
Solar ATAP creditsYesYesNo
CostRM15,000 to RM40,000RM30,000 to RM60,000RM50,000 to RM100,000 or more
Payback4 to 6 years6 to 8 years8 to 12 years

1. On-Grid System

An on-grid system, also called grid-tied, is connected to the TNB grid and has no battery. Your home uses solar power as it is made. Extra energy goes to the grid and earns credits under Solar ATAP.

Good points

  • Lowest cost
  • Simplest installation
  • Shortest payback
  • Little to maintain

Limits

  • No power during a blackout. The inverter switches off when the grid goes down, to protect people working on the lines.
  • At night you buy electricity from TNB as usual

Best for: most Malaysian homes, especially ones that use electricity in the daytime.

2. Hybrid System

A hybrid system is connected to the grid and also has a battery. In the day the panels run the home and charge the battery. In the evening the battery takes over before the grid does.

Technician wiring a solar battery and inverter

Good points

  • Power during a blackout
  • More of your own solar energy used at night
  • Still connected to the grid, so you are never short of power

Limits

  • Higher cost
  • The battery wears out before the panels do and will need replacing
  • Longer payback, because of the battery

Best for: homes that lose power often, homes with equipment that must stay on, and homes that use most of their electricity at night.

You can also start on-grid and add a battery later. Ask for a hybrid inverter at the start, so the system is ready for one.

3. Off-Grid System

An off-grid system has no connection to TNB. A large battery bank stores the day's energy for the night and for rainy days.

Good points

  • Works where there is no grid
  • No electricity bill

Limits

  • Highest cost
  • Needs a large battery bank
  • No Solar ATAP credits, because nothing is exported
  • You have to manage your use on days with little sun

Best for: farms, remote houses and sites the grid does not reach.

Which One Should You Choose?

Ask yourself three questions.

  1. Do you have a TNB supply? If not, off-grid is the only option.
  2. How often does your power go out? If rarely, a battery pays for something you will seldom use.
  3. When do you use most electricity? If in the daytime, on-grid already uses most of your solar power.

For most homes the answer is on-grid. It costs least, and under Solar ATAP the energy you export still lowers your bill.

If you want backup power, choose hybrid. If you are not sure, start on-grid with a hybrid inverter and decide about the battery later.

In Sarawak, Check the Scheme First

Sarawak's NEM scheme, run by Sarawak Energy, is for solar without battery storage. If you live there, read our page on solar in Sarawak before choosing a hybrid system.

Get Advice for Your Home

WhatsApp SolarKita with your TNB bill. We will tell you which type fits the way your home uses electricity.

Frequently Asked Questions

What is the difference between on-grid and off-grid solar?

An on-grid system is connected to the TNB grid and has no battery. An off-grid system has no grid connection and stores its energy in a large battery bank.

Does an on-grid solar system work during a blackout?

No. The inverter shuts down when the grid goes off, for the safety of people repairing the lines. For power during a blackout you need a hybrid system with a battery.

Is a hybrid solar system worth the extra cost?

It is if your power goes out often or you use most of your electricity at night. Otherwise an on-grid system pays back sooner, because it has no battery to pay for.

Can I add a battery to my solar system later?

Yes, if the system has a hybrid inverter. Ask for one at the start if you think you will want a battery.

Which solar system is best for a house in Malaysia?

For most homes, on-grid. It has the lowest cost and the shortest payback, and exported energy earns Solar ATAP credits.

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