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How Solar Energy Works: A Complete Guide

Understand the science behind solar panels and how they convert sunlight into electricity for your home.

Dr. Sarah Mitchell
Dr. Sarah Mitchell
Feb 20, 2026 · 8 min read
How Solar Energy Works: A Complete Guide

Solar energy has become one of the fastest-growing energy sources in the world, and for good reason. It is clean, abundant, and increasingly affordable. But how exactly do solar panels turn sunlight into the electricity that powers your home? Let us break down the science in simple terms.

The Photovoltaic Effect

At the heart of every solar panel are photovoltaic (PV) cells, typically made from silicon, a semiconductor material. When photons from sunlight strike the silicon cells, they knock electrons loose from their atoms. This creates an electrical current through what is known as the photovoltaic effect, first discovered by French physicist Edmond Becquerel in 1839.

Each solar cell produces only a small amount of electricity on its own, typically around 0.5 volts. That is why cells are wired together into modules, and modules are grouped into panels. A standard residential solar panel contains 60 to 72 cells and produces between 300 and 400 watts of power under ideal conditions.

From DC to AC: The Role of Inverters

Solar panels produce direct current (DC) electricity, but your home appliances and the electrical grid operate on alternating current (AC). This is where inverters come in. There are three main types of inverters used in residential solar installations:

String inverters are the most traditional option. All panels in a string feed into a single inverter that converts DC to AC. They are cost-effective but can be limited by shading issues since the entire string performs only as well as the weakest panel.

Microinverters are installed on each individual panel, converting DC to AC right at the source. This means each panel operates independently, so shading on one panel does not affect the others. They also allow for panel-level monitoring.

Power optimizers are a hybrid approach. They are attached to each panel like microinverters but work with a central string inverter. They optimize the DC output of each panel before sending it to the inverter, offering many of the benefits of microinverters at a lower cost.

Net Metering: Selling Back to the Grid

One of the most attractive aspects of residential solar is net metering. When your solar panels produce more electricity than your home needs, the excess is sent back to the utility grid. Your electric meter literally runs backward, and you receive credits on your utility bill for the energy you export.

During evenings and cloudy days when your panels produce less electricity, you draw power from the grid as usual. At the end of each billing cycle, you only pay for the net electricity you consumed. In many cases, homeowners with properly sized solar systems can reduce their electric bills to near zero.

Battery Storage: The Next Level

While net metering is excellent, adding battery storage takes solar to another level. Home batteries like the Tesla Powerwall or Enphase IQ store excess solar energy for use when your panels are not producing. This provides backup power during outages and allows you to use solar energy around the clock.

Battery storage also enables time-of-use optimization. If your utility charges higher rates during peak evening hours, you can draw from your battery instead of the grid, maximizing your savings.

How Much Energy Can Solar Panels Produce?

The amount of energy your solar system produces depends on several factors including the size of your system, your geographic location and climate, roof orientation and tilt angle, shading from trees or nearby structures, and panel efficiency and quality.

As a general rule, a 1-kilowatt (kW) solar system in the United States produces about 1,200 to 1,800 kilowatt-hours (kWh) of electricity per year, depending on location. A typical home uses about 10,000 kWh annually, so a 6 to 8 kW system can often cover most or all of a household’s electricity needs.

The Environmental Impact

Every kilowatt-hour of solar electricity you generate replaces fossil fuel-generated electricity from the grid. Over a 25-year lifespan, a typical residential solar system offsets approximately 100 tons of carbon dioxide emissions. That is equivalent to planting over 2,500 trees or taking two cars off the road for 25 years.

Solar panels also require no water to generate electricity, unlike coal and natural gas power plants that consume billions of gallons annually. By going solar, you are not just saving money, you are making a meaningful contribution to environmental protection.

Getting Started

The first step toward solar energy is understanding your current energy usage and evaluating your property’s solar potential. Our free consultation includes a comprehensive energy audit, satellite-based roof analysis, and a detailed savings projection customized for your home. Contact us today to see how much you could save with solar energy.

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