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What is a microgrid?

A microgrid is a self-contained electrical network that allows you to generate your own electricity on-site and use it when you need it most. A microgrid is thus a type of distributed energy resource. You can operate microgrids while connected to the utility grid or in disconnected “island” mode.

When the grid goes down or electricity prices peak, microgrids respond.

There are three main benefits of microgrids:

  • Keep your facility’s power on during grid outages
  • Store electricity and sell it back to the grid during peak demand
  • Integrate on-site renewables such as wind and solar

How do microgrids work?

A microgrid co-locates electricity generation and consumption. Unlike the utility grid, which generates electricity in a centralized power plant and then distributes it along hundreds of miles of transmission lines, a microgrid generates electricity on-site.

For electricity generation, microgrids typically use some combination of back-up diesel generators and renewables such as solar panels. Microgrids can incorporate battery systems to store electricity and deploy it during outages or when grid demand spikes.

Intelligent software controls can automatically switch the facility between the utility grid and the microgrid based on factors such as power reliability and cost efficiency.

Learn about EcoStruxure™ Microgrid Advisor

Schneider Electric ranked #1 microgrid integrator in Guidehouse Insights Leaderboard

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Products, software, and services for Microgrids


Energy Control Center


EcoStruxure™ Microgrid Flex


EcoStruxure Power Monitoring Expert

EcoStruxure Microgrid Advisor


Start-up and Commissioning

Microgrid Consulting Services

What is energy-as-a-service?

Energy-as-a-service (EaaS) is a financing model for microgrids that allows you to avoid upfront costs. Similar to a software-as-a-service model, with EaaS you avoid capital expenditures and instead pay only for ongoing service.

Schneider Electric and our strategic partner, the Carlyle Group, have joined forces to create AlphaStruxure, a venture that is solving the world’s most complex energy challenges. AlphaStruxure will finance, build, and maintain your microgrid.

More about energy-as-a-service

Faith Technologies Incorporated

Sustainability Impact Award winner Faith Technologies Incorporated has already neutralized 249 million pounds of carbon. Hear about how the company uses microgrids to build a more sustainable world.

Daughters of Mary Campus

A campus microgrid reduces energy costs and supports critical care facilities.



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