A grid connect solar power system draws power from solar panels during the day, when the sun sets or on very dark or cloudy days when there is not enough sunlight to power the solar modules the system switches over to draw electricity from the local power grid which is usually driven by fossil fuels like coal or gas.

Most solar power systems in use in Australia are of the grid-connect type. When a grid-connect solar power system makes more electricity than is required, the extra power can be fed back into the power grid for other homes to use. When the solar panels are not making enough electricity, power can then be then drawn from the grid.

Solar feed-in tariffs can sometimes be confused with solar rebates. A solar rebate is a discount you can get when you buy a solar power system. A solar feed-in tariff is a price or credit you get when your grid-connected solar power system sells electricity back to the grid for use by other customers on the grid.