How Do Solar Panels Work?

Solar panels are magic. Or maybe they feel like it. Learn how solar panels work in this brief article.

Last updated
August 15, 2024
Author: Matt from Currents
Learn about energy for your home or business.

The Photovoltaic Effect

  1. Sunlight Hits the Solar Panels: Solar panels are made up of photovoltaic (PV) cells, which are typically composed of silicon. When sunlight, consisting of photons, strikes these cells, it initiates the photovoltaic effect.
  2. Generation of Direct Current (DC) Electricity: The energy from the photons excites electrons in the silicon cells, causing them to move and create an electric current. This current is direct current (DC) electricity, which flows in a single direction.
  3. Conversion to Alternating Current (AC): Since most home appliances use alternating current (AC) electricity, the DC electricity generated by the solar panels is converted into AC by an inverter. This conversion is essential for the electricity to be usable in homes.
  4. Distribution of Electricity: The AC electricity is then fed into the home's electrical panel, where it is distributed to power appliances and devices. Any excess electricity can be sent back to the grid or stored in batteries for later use.
  5. Net Metering and Grid Integration: If the solar panels produce more electricity than is consumed, the surplus can be exported to the grid. This process, known as net metering, can result in credits on electricity bills, further enhancing the economic benefits of solar energy.

By following these steps, solar panels effectively convert sunlight into usable electricity, offering a renewable and sustainable energy source for homes and businesses.

home with rooftop solar

What types of material are used in solar panels?

The most common residential solar panels contain monocrystalline or polycrystalline (also called multicrystalline) solar cells.

If space is limited on your roof, a higher-efficiency monocrystalline panel may be preferred, and could result in a better return on investment. Alternatively, a lower-cost, slightly less efficient, polycrystalline panel may do the job just as well if you have ample roof space on your home. 

Most panel manufacturers also build panels containing both mono and polycrystalline wafers to form solar cells, capable of harvesting energy from a wider spectrum of light. Get the best of both worlds!

home battery with solar

How does sun exposure affect solar panel efficiency?

Of course it does. But more specifically, it's important that your panels get good sun exposure throughout the day and are free from as much shading from trees or neighboring obstructions as possible.

There are a number of factors that influence solar panel efficiency. They include:

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