Solar panels convert solar energy from sunlight into electrical energy for your home. The most common solar panels are made from one of three semiconductors: monocrystalline silicon, polycrystalline silicon, or thin-film solar cells.

When sunlight hits the thin layer of semiconductive material, it triggers the release of electrons from silicon atoms.

The negatively charged electrons are then attracted to the positively charged side of the cell. This “photovoltaic effect” forms as a result of the free-flowing electrons within the solar panel.

The moving electrons create an electric current which is then harnessed by the wiring connected to the solar panels to produce electricity.

Solar panels produce electricity in the form of direct current (DC). However, your home appliances use alternating current (AC) electricity, which means the electricity flows in both directions.

This means that the solar electricity from your panels needs to be converted from DC to AC to make it usable in your home. To convert DC power to AC power, you need an inverter.

The type of inverter you use depends upon the size and configuration of your home solar energy system. A simpler system typically uses a string inverter, a single box in a central location near your circuit breaker.

More intricate systems use microinverters in which each panel has its own individual inverter. Other inverter options include power optimizers and hybrid inverters, depending upon your home’s energy needs.

Solar inverters also allow you to connect your solar panel system to the internet so you can access information about your system’s performance.

This helps you compare your solar energy production and your household energy consumption so you can check if the system is functioning properly and meeting your electrical load as required.

Your electrical panel distributes electricity throughout your home. The circuit breakers in the electrical panel can also cut off the flow of current to an electrical circuit in case a fault or surge occurs to prevent overload in electrical lines that can cause damage.

While your solar panels generate electricity, they typically aren’t connected directly to your appliances or other electronic devices.

In terms of understanding how do solar panels work, they provide electricity to the electrical panel, and your electrical panel separates that home solar power into individual circuits that run to everything in the house.

Your electric meter (sometimes called the “utility meter”) is the device your utility company uses to measure your electricity consumption. It’s how they know what to bill you each month or bi-monthly.

A traditional electric meter has analogue dials that spin as current flows through it, which is why the utility company has someone check your meter in person or offer an estimated bill.

Even then, that meter reading is just a summary of your electricity consumption for the month or period.

When you go solar, you consume electricity from your solar panels, which lowers the amount of electricity you consume from the grid. 

As a result, your electric meter records a lot less consumption, and you save money by not paying for that electricity from the utility company.

Smart meters are more modern meters which allow more real-time information be captured and communicated to your electricity provider.

If your solar panel system is connected to the electricity grid (most are) then you can benefit from FIT (feed in tariff) credits from your local utility company for any surplus electricity generated. This is excess electricity generated that is fed back to the grid.