Solar panels, also known as photovoltaic (PV) panels, are made up of multiple solar cells. These cells are typically made of semiconductor materials, such as silicon. When sunlight hits the solar panels, the photons (particles of light) excite the electrons in the cells, creating a flow of electric current.
The electric current generated by the solar cells is in the form of direct current (DC), which is a flow of electrons in one direction. However, most appliances and the electrical grid operate on alternating current (AC). Therefore, an inverter is used to convert the DC electricity into AC electricity, making it compatible with standard electrical systems.
The AC electricity produced by the solar panels can be used to power electrical appliances and devices directly within the property where the solar system is installed. If the solar system generates more electricity than is currently needed, the excess can be sent back to the grid for others to use. Conversely, when the solar system does not generate enough electricity to meet the demand, electricity can be drawn from the grid.
excess electricity exported to the grid during times of surplus can be credited to the consumer's account. When electricity is drawn from the grid, the credits can be used to offset the cost. This allows solar system owners to effectively reduce their electricity bills.