An on-grid solar system, also known as a grid-tied or grid-connected system, is a solar energy setup that is connected to the main electrical grid. It works by generating electricity from sunlight using solar panels, which is then converted into usable AC power by inverters. This electricity is either used immediately by the property or exported to the grid for use by other consumers. On-grid systems allow users to take advantage of net metering, where excess energy exported to the grid can be credited or sold back to the utility company.