PostgreSQL vs Neon for Solo Developers

Quick Comparison

PostgreSQL Overview

Self-hosted PostgreSQL means you run the database on your own server. You control everything: the version, extensions, configuration, backup strategy, replication, and resource allocation. This gives you maximum flexibility and zero vendor lock-in.

The tradeoff is operational responsibility. You handle updates, security patches, backups, monitoring, connection pooling, and disaster recovery. For a solo developer who already manages a VPS, adding Postgres is straightforward. For someone who wants to focus purely on application code, it is extra work.

Cost-wise, self-hosted Postgres is unbeatable. A $5-10/mo VPS from Hetzner or DigitalOcean can run Postgres alongside your application. No per-query charges, no connection limits, no compute hour caps. Just a flat monthly server cost.

Neon Overview

Neon is serverless PostgreSQL that separates storage from compute, allowing your database to scale to zero when idle and spin up on demand. It is full PostgreSQL compatibility with a serverless billing model. Think of it as "Postgres without the ops."

The free tier is genuinely generous: 0.5 GB of storage, 191 compute hours/month, and database branching. For side projects and early-stage products, this is enough to run a real application without spending anything. The Pro plan at $19/mo removes most limits.

Database branching is Neon's standout feature. You can create instant copies of your database for testing, development, or preview deployments. This is genuinely useful when paired with preview deploy services like Vercel. Each preview gets its own database branch with real data.

Key Differences

Same engine, different delivery. Neon runs PostgreSQL. It is not a Postgres-compatible database. It is actual Postgres. Your SQL, extensions, and tools work the same way. The difference is in how the infrastructure is managed and billed.

Operational burden is the real comparison. Self-hosted Postgres means you manage backups, updates, monitoring, and failover. Neon handles all of this automatically. For a solo developer who would rather write features than manage database infrastructure, Neon removes a meaningful chunk of ops work.

Cold starts are the tradeoff. Neon's serverless model means your database can spin down when idle. The first query after inactivity takes a few hundred milliseconds to wake up the compute. For always-on production apps, this adds latency. Self-hosted Postgres is always running and always fast.

Cost structure differs significantly. Self-hosted Postgres costs whatever your server costs, regardless of usage. Neon charges based on compute hours and storage. For a side project with sporadic traffic, Neon is cheaper (free). For a production app with constant traffic, self-hosted is often cheaper because a flat $10/mo VPS has no usage caps.

Branching is Neon's killer feature. Creating a copy of your production database takes seconds in Neon and uses copy-on-write storage, so it barely costs anything. Doing this on a self-hosted setup means dumping and restoring the database manually. For development workflows, especially with preview deploys, this is a legitimate advantage.

Connection pooling is handled for you. Neon includes a built-in connection pooler. Self-hosted Postgres needs PgBouncer or a similar tool to handle many concurrent connections efficiently, especially in serverless environments. One less thing to configure.

When to Choose Self-Hosted PostgreSQL

• You already manage a VPS and are comfortable with database administration
• You need predictable, flat-rate pricing regardless of usage
• You want zero cold start latency for always-on applications
• You need specific Postgres extensions or custom configurations
• You want maximum control and zero vendor lock-in

When to Choose Neon

• You want Postgres without managing infrastructure
• You are building side projects and want a free database
• You use preview deployments and want database branching
• Your application has variable or low traffic
• You want connection pooling handled automatically

The Verdict

Both earn a 9/10 for solo developers, and the right choice depends on your situation. If you already run a VPS and are comfortable with basic server administration, self-hosted Postgres gives you the best value and performance. No cold starts, no usage limits, no surprises.

If you want to focus entirely on building your application and never think about database ops, Neon is excellent. The free tier is generous enough for real projects, branching is genuinely useful, and the fact that it is real PostgreSQL means you can migrate away anytime. My recommendation: use Neon for side projects and prototypes, self-host Postgres for production applications that need consistent performance.