The basic work of Solar Power plant is to generate electricity from solar panel. Solar Panel generates DC (Direct Current) electricity from sunlight, solar inverter convert this power to AC (Alternative Current) and run your electrical home appliances and machines. Basically there are three types of Solar Power Plant.
Off grid is a battery based solar power system, In the first priority this system will run your home appliances or connect load (as per solar inverter capacity). And surplus power feed in to the solar battery bank, provided with the solar power system. This type of solar power are recommended where power cut are the major problem.
On grid solar system is grid (Government electricity supply) connected system. In the first priority this system will run your home appliances or connect load (without any limit). If your connected load will exceed the capacity of installed solar power plant it will automatically use the power from main grid. And if your connected load is less, it will supply surplus power to the grid. This type of system is recommended to reduce electricity bills only.
Hybrid is a combination of on grid solar system as well as off grid solar system. One side hybrid solar system connects with the main electricity grid and simultaneously it will also provide battery backup to you.
CAPEX and OPEX Model Solar Power Installations
You might not want to build your own solar system but rather then this, you want to buy the electricity produced by the solar system. That way, you don’t have the upfront costs, construction and maintenance to worry about. Maybe someone else will be happy to build a solar plant on your roof (or nearby) and sell you the power through a Power Purchase Agreement (PPA). This model works typically for industrial and commercial solar system consumers and Indian companies have started offering it to residential customers in some cities. A PPA is a formal agreement between an electricity consumer (in this case, you) and the electricity generator (usually an investor) that specifies terms and conditions of electricity purchase. Details usually include the length of the PPA (typically 10- 25 years), the price (tariff) for the power from the solar plant and annual escalations (if any). OPEX model is also called the power purchase agreement.