Microgrids are the future of power distribution. With the rural population demanding more access to electricity, this is the most efficient and feasible option. In this article, we discuss the major advantages of it.

1. Benefits of Microgrid
1. Cost
Since setting up of a grid connected sub-system is pretty costly for a remote
location - it involves heavy equipment cost for setting up a sub-station including
transformers - setting up a smaller Solar DC micro grid makes more financial
sense.
Furthermore, for a small micro grid, the transmission losses are higher for an AC
system as compared to a DC system.
2. Reliability
A small DC micro grid is far more reliable than a dependency on a centralized
grid. This is primarily due to distributed nature of generation. With distributed
sources of power, operation of one generation system is independent of the
failure of another.

2. 3. Scalability
DC microgrids are very easily scalable as compared to AC microgrids. This is
primarily due to the absence of limiting equipments like transformers and relays,
that are size specific and need to be replaced once, the consumer base
increases.
4. Efficiency
DC microgrids are comparatively more efficient due to the use of energy efficient
DC appliances like BLDC motors instead of induction motors, in household
appliances. They result in lower investment requirement on the generation side.