What is a Microgrid and How Does it Work?

What is a microgrid and how does it work? New portable units allow you to “island” home energy for off-the-grid security.

By Hoss Boyd
Updated on March 12, 2025
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by Adobestock/snapshotfreddy

What is a microgrid and how does it work? New portable units allow you to “island” home energy for off-the-grid security.

No, we’re not talking about miniature cooking pans for making tiny pancakes! Rather, new “micro-microgrid” technologies are allowing individuals to adopt homestead-sized versions of a microgrid for their own energy security. These systems serve the same purpose of keeping the lights on when utility-supplied power goes down, but at a fraction of the cost of more expensive solar-plus-battery-storage systems. They’re owned by a homeowner, rather than a utility, and are sited on the owner’s property, located on the owner’s side of the meter – plus, they’re portable.

Today’s micro-microgrids can be small enough to resemble a carry-on suitcase complete with fold-out solar panels and batteries, or they can come as larger units built into modified shipping containers that can power whole properties (provided you have a big budget to match). Prefabricated in a factory with all the components pre-wired, each type of system plugs-and-plays in minutes, and because the smallest among them are housed in protective cases equipped with rollers and handles, you can load them into the back of an off-road vehicle and take them to remote locations.

What is a Microgrid and How Does it Work?

For these reasons, I figure the term “microgrid” should’ve been referring to home-scale systems all along, and let me tell you why. The technology (really a whole grouping of technologies) traditionally referred to as a microgrid is actually a relatively large-scale system intended to operate independent of the “macrogrid” – the plain ol’ grid – in the event said grid goes down. A defining feature for microgrids is that they “island,” or fully disconnect from the larger grid, and keep running during an outage. To serve a single neighborhood, a microgrid can require a huge bank of batteries capable of storing megawatts of energy fed by 10 or more acres of solar panels (and a common misconception is that all microgrids run on renewables; any fuel type, including coal and fossil gas, can power them).

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