How Solar Panels Work

The Short Version

Solar panels convert sunlight directly into electricity using photovoltaic (PV) cells. An inverter converts that electricity from DC to AC (what your home uses). Your home uses the solar electricity first, and any excess goes to the grid for credits. At night, you draw from the grid and use those credits. Your electric meter tracks the net difference.

Step 1: Sunlight Hits the Panels

Solar panels are made of silicon cells arranged in a grid. When photons (particles of light) hit the silicon, they knock electrons loose from their atoms. This creates an electrical current. Each cell produces a small amount of voltage; wired together in a panel, they produce meaningful power. A typical residential panel produces 350-450 watts.

Step 2: The Inverter Converts Power

Solar panels produce direct current (DC) electricity. Your home and the grid use alternating current (AC). An inverter converts DC to AC. There are two main types: a string inverter (one central unit for the whole system, cheaper) and microinverters (one small inverter per panel, better for shaded roofs because one shaded panel does not reduce the entire system output).

Step 3: Your Home Uses the Power

Solar electricity flows to your breaker panel and powers your home in real time. If your panels produce more than you are using at that moment, the excess flows out to the grid. If you are using more than your panels produce, you draw the difference from the grid. This happens automatically and seamlessly.

Step 4: Net Metering Credits

Most utilities offer net metering: excess power you export earns credits on your bill. At night or on cloudy days, you use those credits to offset the electricity you import. At the end of the billing cycle, you only pay for the net difference. Many solar homeowners have electric bills of $10-20 per month (just the utility connection fee).

Solar panels have no moving parts, require almost no maintenance, and are warrantied for 25-30 years. They typically last even longer than that. The technology is mature, proven, and getting cheaper every year.