Advantages

There are a few advantages to having an ungrounded system. The first is that since your system is never physically connected to the ground, you have negligible ground fault current. For example, in a 3-phase system, because all of the ground fault current is capacitive, when you have a single line-to-ground fault in an ungrounded system, the current and voltage you would lose is negligible, and is instead carried by the other two lines. This allows you to continue operation unimpeded during a single line-to-ground fault.

The other big advantage is that because of the negligible ground fault current, special ungrounded systems can be used to minimize shock risk to people. An excellent example would be medical equipment in a hospital: a patient is directly connected to the machine, and if a fault were to occur, electricity might be able to flow through the patient and into the ground. Because the ground fault current is negligible in an ungrounded system, no power current will pass from the machine through the patient into the ground.

Disadvantages

Of course, the disadvantages of an ungrounded system are obvious. If there is a fault, you are now using two wires to carry an amount of current that was allotted for three wires: the increase in current and voltage will jack up the heat, and the extra heat will wear out your insulation much faster. Worn out insulation could lead to unnecessary damage to your electrical system, particularly at motors.

The other big disadvantage of an ungrounded system is that it is incredibly difficult and time consuming to locate any faults. Each line must be tested individually, which is a very slow process that completely interrupts service. The opportunity cost of a fault in an ungrounded system is very high.

Ungrounded systems were the norm back in the 40's and 50's, but because their disadvantages outweigh their advantages in most scenarios, you won't see too many new ungrounded systems today.

Advantages Over Ungrounded Systems

Because the current in the neutral is controlled instead of negligible, system overvoltages are also controlled. This reduced current and reduced overvoltage means reduced heat, which keeps the wear and tear of your electrical system to a minimum. This is especially important for keeping your motors safe, since the reduced current will not damage the magnetic iron of the motor (which is costly to repair). The reduced currents also reduce the risk of shock and arc flash/blast hazards.

There are two types of resistance grounding: high resistance grounding and low resistance grounding.

High Resistance Grounding

High resistance grounding is typically used to limit ground fault current to < 10 amps. The low ground-fault current also means that, just like an ungrounded system, you can continue to operate the system on a single line-to-ground fault. The low current will typically not trip your protective devices during a single line-to-ground fault.

Overall, you want to use high resistance grounding when you need low fault current and still want to operate with a single fault. High resistance grounding is typically seen in retrofits of previously ungrounded systems in addition to new systems.

Low Resistance Grounding

Low resistance grounding typically limits ground fault current to between 100 and 1000 amps. This offers a similar advantage to high resistance grounding in that you can control the ground fault current, which means you can design your system to withstand the currents without damage.

Low resistance grounding systems have the benefit of tripping your protective devices when there is a fault. Their purpose is to immediately cut the power to the circuit, and so unlike the high resistance grounding systems, a low resistance grounding system will not maintain operation during a single line-to-ground fault.

Low resistance grounding also reduces overvoltage, and is used in medium voltage systems of 15kV or less, typically where big generators/motors are used.

Pros and Cons

Solid grounding, like resistance grounding, can greatly reduce overvoltages in your electrical system. However, solidly grounded systems have the potential to have huge amounts of ground-fault current. As a result, solidly grounded systems cannot operate with a ground fault (since all of the current in the system is going from fault to ground). Solid grounding has two main uses:

• In systems with voltages of 600V or less, solid grounding can be used if it is not necessary to maintain operation of a faulted circuit.
• In systems with voltages of 15kV or greater, solid grounding can be used if high ground fault currents are desirable of any reason, such as quick ground fault detection (since the high current will most definitely trip protective devices).