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What does grid-connected solar power system mean?

Suburban homes in Australia are connected to the electricity grid (power lines). Our electricity system uses 240Volt and alternating current electricity (AC). But the electricity generated by solar panel is direct current (DC). That means grid-connected solar PV systems use micro inverters or a central inverter to transform the DC electricity into AC electricity suitable for ordinary household use.Houses with grid connect solar systems consume the solar electricity first and then if more electricity is required than the solar system creates - at that point in time - the rest of the household's electricity need is sourced directly from the electricity grid.

grid connected solar power system