Hybrid solar systems generate power in the same way as a common grid-tie solar system but use batteries to store energy for later use. This ability to store energy enables most hybrid systems to also operate as a backup power supply during a blackout, similar to a UPS system.
Traditionally the term hybrid referred to two generation sources such as wind and solar but more recently the term 'hybrid solar' refers to a combination of solar and battery storage which unlike off-grid systems is connected to the electricity grid.
The Government and local utility grid operators have reduced the solar feed-in tariff (money or credit received for feeding solar energy to the grid). This means traditional grid-feed solar systems have become less attractive as most people are working during the day and not home to use the solar energy as it is generated, thus the energy is fed into the grid for very little return.
A solar hybrid system stores your excess solar energy and can also provide back-up power during a blackout. This is perfect for home owners although for the majority of businesses which operate during the daylight hours, a common grid-feed solar system is still the most economical choice.
The ability to store and use your solar energy when desired is referred to as self-use or self-consumption. It works in the same way as an off-grid power system but the battery capacity required is far less, usually just enough to cover peak consumption (8 hours or less) as opposed to 3-5 days with a typical off-grid system.