If you’re exploring solar energy for your home or commercial property, you’ve likely come across solar system diagrams. These are visual layouts that explain how solar panels, inverters, batteries, and the grid work together. For Australians considering solar, understanding a diagram for solar system is one of the easiest ways to grasp how solar power works—and what setup best suits your energy needs.

In this article, we’ll break down typical solar system diagrams for both residential and commercial use. We’ll explain each component’s role, how they connect, and how a well-designed system can reduce your electricity bill and carbon footprint.

What Is a Solar System Diagram?

A solar system diagram is a simplified illustration showing the flow of electricity from solar panels through an inverter and into your home or business. It also shows how energy interacts with the grid, battery storage, and smart meters.

While the layout can differ slightly based on whether you’re installing solar at home or a business site, the core components are similar. Most diagrams feature:

• Solar panels
• Solar inverter
• Main switchboard
• Battery (optional)
• Grid connection
• Appliances (energy consumption)
• Solar monitoring device

Diagram for Solar System for Residential Use

A typical home solar system diagram includes solar panels on the roof that generate DC (direct current) electricity. This DC power flows to a solar inverter—usually mounted near your switchboard or on a wall in the garage—which converts the power into usable AC (alternating current) electricity for your home.

The AC power is directed to your main switchboard, where it powers your lights, air conditioning, appliances, and other devices. If you generate more electricity than you use, the surplus is sent back to the grid, earning you credits via feed-in tariffs.

If you have a battery installed, excess solar power first charges your battery. Once the battery is full, any remaining electricity is exported to the grid.

Solar System Diagram for Commercial Use

Commercial solar system diagrams are more complex but follow the same principles. The key differences include:

1. Three-phase power connections
2. Higher panel capacity, often 20kW, 30kW or more
3. Commercial-grade inverters and mounting systems
4. Energy management software
   

A commercial diagram also highlights power demand during business hours, peak usage, and how battery storage or export limits can affect energy strategy. Many businesses also install monitoring platforms to track system performance in real time.

Components in a Solar System Diagram

Here’s a breakdown of each major component you’ll see in a solar system diagram:

1. Solar Panels

These are the most visible part of your system, usually installed on rooftops. They convert sunlight into DC electricity. In both home and commercial diagrams, panels are connected in series or parallel strings and wired to the inverter.

2. Solar Inverter

The inverter is the brain of the system. It converts the DC electricity into AC electricity for use in your home or business. Types include string inverters, microinverters, and hybrid inverters (which work with batteries).

3. Battery Storage 

If you have a battery, the diagram will show how it stores unused solar power during the day and releases it when the sun isn’t shining, such as at night or during blackouts. Systems like Powerbank 10 are common in Australia.

4. Switchboard / Main Panel

This is where solar electricity is distributed through your property. It powers everything from lights to heavy machinery and connects to any sub-boards on site.

5. Smart Meter and Grid Connection

The smart meter tracks electricity imported from or exported to the grid. It allows your electricity provider to measure usage and credit you for excess solar power.

6. Monitoring System

Many diagrams include a solar monitoring system connected to the inverter. These systems help you track energy production, consumption, and savings in real time from your smartphone or desktop.

Why Diagrams Matter for Solar Buyers

Understanding your solar system diagram helps you make informed decisions. Whether you’re choosing between different inverters, planning for battery storage, or trying to work out your grid connection, a diagram shows the whole energy flow.

For businesses, a detailed diagram also supports compliance with energy regulations, helps your installer optimise system design, and ensures your investment delivers maximum return.

Battery Integration: Updated Policy and Incentives

In 2025, battery storage is becoming more accessible thanks to government rebates like the Cheaper Home Batteries Program. This scheme offers up to $18,500 off battery installations, with low-interest financing options available. Your solar diagram will include the battery layout and how it charges from panels and supplies backup power.

Off-Grid Solar System Diagrams

If you live in a remote area or want full energy independence, off-grid solar diagrams are a little different. They replace the grid connection with larger battery banks, backup generators, and charge controllers. These diagrams are essential for sizing your system accurately and ensuring 24/7 power reliability.

How to Read a Solar System Diagram

Even if you’re not an electrician, reading a basic solar diagram is easy once you know what to look for:

• Arrows indicate the direction of power flow
• Boxes or icons represent hardware (panels, inverter, battery)
• Dashed lines may show optional components like monitoring or EV chargers
• Colour coding helps differentiate DC and AC circuits

Your installer will usually provide a site-specific diagram based on your roof layout, usage patterns, and energy goals.

How REA Solar Helps

At REA Solar, we design solar systems that are custom-fit for your home or business, using site assessments, drone imagery, and energy usage data to deliver a full diagram and layout. Our in-house engineers ensure that your system is efficient, scalable, and compliant with Australian standards.

We also provide you with:

1. A detailed solar system diagram
2. A projected savings analysis
3. Connection approvals with your energy distributor
4. Clear information about batteries, export limits, and usage

A solar system diagram is more than a technical drawing—it’s a visual roadmap to your energy future. Whether you’re a homeowner looking to reduce bills or a business aiming to cut operational costs, understanding how solar works through a diagram helps you make better choices and maximise your return on investment.

Ready to take control of your energy future? 

Let REA Solar design a custom solar system with a clear, easy-to-understand diagram tailored to your home or business. Our expert team breaks down every component so you know exactly how your system works—and how much you’ll save. Contact us or call us at 1300 563 458. Get your personalised solar layout and savings forecast today!

Frequently Asked Questions

What is a solar diagram?

A solar diagram is a visual representation that shows the position and path of the sun relative to a specific location on Earth. It’s used in solar energy planning to determine the optimal placement of solar panels for maximum sunlight exposure. The diagram often includes solar angles throughout the day and across seasons. Architects, engineers, and solar installers rely on it for designing energy-efficient systems and structures.

How does a solar system work step by step?

First, solar panels capture sunlight and convert it into direct current (DC) electricity using photovoltaic cells. Next, an inverter changes the DC electricity into alternating current (AC), which can be used by household appliances. The AC power is then fed into your home’s electrical panel for use. Any excess electricity can be stored in batteries or sent back to the grid, depending on the system setup.

How to draw a wiring diagram of solar installation?

Start by sketching out all key components: solar panels, charge controller, inverter, batteries (if any), and load connection. Draw lines showing how wires connect each part, using proper symbols for DC/AC, breakers, fuses, and grounding. Label wire sizes, voltages, and connection types clearly to ensure safety and clarity. Review standards or consult a professional guide to ensure the diagram meets local electrical codes.

What are the 3 types of solar power systems?

The three main types are grid-tied, off-grid, and hybrid systems. Grid-tied systems connect to the utility grid and use it as a backup for power supply or export excess energy. Off-grid systems operate independently and rely entirely on solar power and batteries, suitable for remote areas. Hybrid systems combine solar, batteries, and the grid, offering flexibility and backup during outages.