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Microgrids Explained: Local Power Islands for Resilience

A microgrid is a localised energy system that can run independently of the main grid. How they work, who uses them, and the role of home solar.

WaterFuelAndSolarEnergy.com Editorial Team Updated December 2024 7 min read

A microgrid is a small energy system with its own generation and storage that can disconnect from the main grid and keep supplying local customers — the principle scaled to a neighbourhood or campus rather than a single home.

Key parts

  • Local generation (solar, wind, sometimes generators)
  • Storage to balance supply and demand
  • A controller that manages grid connection and islanding
  • A way to “island” — disconnect and run standalone
How is a microgrid different from a battery at home?
A microgrid coordinates multiple buildings, shared generation and storage with a central controller. A home battery is the single-household version of the same idea.