The energy transition supports the shift towards more sustainable energy alternatives, paving towards decentralized smart grids, where the energy is generated closer to the point of use. The decentralized smart grids foresee novel data-driven low latency applications for improving resilience and responsiveness, such as peer-to-peer energy trading, microgrid control, fault detection, or demand response. However, the traditional cloud-based smart grid architectures are unable to meet the requirements of the new emerging applications such as low latency and high-reliability thus alternative architectures such as edge, fog, or hybrid need to be adopted. Moreover, edge offloading can play a pivotal role for the next-generation smart grid AI applications because it enables the efficient utilization of computing resources and addresses the challenges of increasing data generated by IoT devices, optimizing the response time, energy consumption, and network performance. However, a comprehensive overview of the current state of research is needed to support sound decisions regarding energy-related applications offloading from cloud to fog or edge, focusing on smart grid open challenges and potential impacts. In this paper, we delve into smart grid and computational distribution architec-tures, including edge-fog-cloud models, orchestration architecture, and serverless computing, and analyze the decision-making variables and optimization algorithms to assess the efficiency of edge offloading. Finally, the work contributes to a comprehensive understanding of the edge offloading in smart grid, providing a SWOT analysis to support decision making.