How Solar Power Works: A Guide to Solar Panels and Systems

Solar power is an incredible technology that harnesses the clean, abundant energy of the sun. In just an hour and a half, the amount of sunlight that strikes the earth’s surface could power the world’s energy consumption for an entire year. So how does this amazing technology actually work?  

Essentially, solar panels use photovoltaic (PV) cells  to convert sunlight into electricity that can be used to power homes, businesses, electric vehicles and almost any other energy-consuming technology. But how? It’s surprisingly easy. 

In this blog, we’ll explore how solar power works, including how solar panels generate electricity, components of a solar panel system, the role of solar inverters and batteries, and what’s involved in a solar power installation. 

What is solar energy?

Solar energy is the radiant light and heat that comes from the sun. Solar panels capture this solar radiation and convert it into electricity. This creates a renewable energy source that’s abundant, sustainable, and environmentally friendly. 

By tapping into the natural and near inexhaustible energy supply of the Sun, solar power systems can provide a clean, cost-effective alternative to traditional energy sources. Every location on earth receives sunlight at some point throughout the year, but in exceptionally sunny regions - like Arizona - solar energy production is an absolute game-changer. 

How solar panels generate electricity

We all know that solar panels convert sunlight into electricity, but how exactly does this process work? Solar power relies on the photovoltaic effect and involves several key components that work together seamlessly to generate electricity. 

Let’s take a closer look at the photovoltaic effect and the key parts that make up a solar panel. We’ll then look at all the components that make up a functional solar energy system. 

The photovoltaic (PV) effect

Solar panels utilize  the photovoltaic (PV) effect to convert sunlight into usable energy. The photovoltaic effect occurs when photons from sunlight strike a PV cell, exciting the electrons to a higher energy state, and causing them to move. This generates a flow of direct current (DC) electricity. 

A single PV cell, also known as a solar cell, is usually made from silicon and is less than the thickness of four human hairs. Each PV cell can produce around one or two watts of power. 

Essentially, the PV effect allows solar cells to convert energy from the sun directly into electrical energy without any moving parts. The lack of moving components also makes solar panels quite durable, and subject to minimal wear and tear over time. Most modern solar panels have a usable lifespan measured in decades. 

Key parts of a solar panel

Solar panels are made up of four key parts: 

• Silicon cells: Silicon has conductive properties that allow it to absorb and convert sunlight into electricity. These cells are usually made from crystalline silicon and are designed to maximize photon absorption.
• Glass casing: The glass casing on the front of a solar panel protects the silicon cells from the elements while allowing sunlight to pass through with minimum reflection (which can reduce absorption). 

• Metal frame: This provides structural support and protects the edges of the panel. The metal frame also ensures solar panels are securely mounted and fixed on rooftops. 

• Wiring: Wiring in solar panels connects the individual cells together and transfers generated DC energy to the inverter. 

Components of a solar energy system

A solar energy system is made up of more than just panels. There are four components in a solar energy system: 

• Solar panels: Solar panels work by using PV cells to capture solar energy and convert it into direct current (DC) electricity. 
• Inverter: This device transforms DC electricity into alternating current (AC) electricity, which is what’s used to power homes and appliances.
• Solar meter: This keeps track of the energy you use and surplus you generate. Solar meters run in both directions, showing how much energy you’re using and how much you’re sending back into the grid. As such, solar meters are crucial in managing your solar energy consumption and credits. 
• Battery (optional): Solar batteries are used to store excess solar energy for later use, like after the sun goes down or to offset expensive on-peak hours when utility energy is the most expensive. Batteries can also provide energy backup to keep critical electrical systems - like ACs, light or medical equipment - functional during a power outage. 

Types of solar panels

There are three main types of solar panels:

• Monocrystalline: These panels are made from a single silicon crystal, giving them a sleek look. They’re highly efficient, durable, and can perform better in low-light conditions compared to other types. 

• Polycrystalline: Also known as multicrystalline panels, these are made from multiple silicon crystals. They are less efficient than monocrystalline panels but also more cost-effective, making them popular for homeowners installing solar panels on a budget.

• Thin-film: These are created by depositing a thin layer of photovoltaic material onto a solid surface, like glass. They’re flexible and lightweight, making them useful for a wide range of applications, but have lower efficiency compared to crystalline solar panels. Thin-film panels are mostly used in large-scale industrial and utility solar installations.

The role of solar inverters

Solar panels generate direct current (DC) electricity, but most household appliances run on alternating current (AC) electricity. To make solar electricity usable, solar inverters convert the DC electricity generated by solar panels into the AC electricity that can be used at home and fed into the grid. 

Types of solar inverters

There are three main types of solar inverters: 

• String inverters: Also known as central inverters, these are the most common type of solar inverter for both residential and commercial systems. They connect multiple solar panels in a series (or string) and convert the collective DC electricity from these panels into AC electricity. These inverters are cost-effective and simple to install, but their efficiency can be easily affected as each string functions as a united group. If even one solar panel is shaded or damaged, the entire string’s performance is impacted.

• Microinverters: These are small inverters installed on each individual solar panel. They immediately convert DC to AC electricity, allowing each solar panel to operate independently. This means that if one panel is shaded or damaged, the others will continue to operate at peak efficiency. Microinverters are ideal for complex roofs with shading issues or when panels are oriented in different directions. They are typically more expensive than string inverters and their installation is slightly more complex as well.

• Hybrid inverters: Also known as multi-mode inverters, these are designed for solar energy systems that incorporate battery storage. They convert DC electricity into AC electricity while also directing excess solar energy into the solar batteries. Hybrid inverters are ideal for off-grid use and providing power during off-peak hours or power outages.

How solar batteries work

Solar panels often produce more electricity than immediately required, especially during peak sunlight hours, or during milder weather seasons when a home’s energy consumption is significantly lower Instead of sending this excess energy back to the grid, you can use solar batteries to store it for later use, like during periods of no sunlight or when a power outage occurs. 

Solar batteries can either be connected directly to a hybrid solar inverter (DC Coupled) or to your home’s electric panel (AC Coupled). In an AC-coupled system, the DC electricity from your solar panels is first converted to alternating current (AC) for home use, and back to DC again for battery storage. This three inversion process results in some efficiency loss. In DC-coupled systems, the DC electricity from your solar panels flows directly into the battery, inverting just once to AC electricity when it’s ready to be used in the home. 

Pros and cons of AC-Coupled systems

AC-coupled batteries integrate most easily with existing solar energy systems, simplifying installation and reducing initial costs. However, AC Coupling’s double conversion process does result in some efficiency loss. DC-coupled batteries benefit from a single DC-to-AC conversion process and therefore offer slightly higher efficiency than their AC Coupled counterparts. DC Coupled batteries are also easier to configure when installed at the same time as solar due to fewer components and labor hours. 

Benefits of solar batteries

Solar batteries have many benefits, from reducing your power bill to providing energy security during blackouts. 

• Energy independence: Solar batteries reduce your reliance on the grid by allowing you to store your excess solar energy rather than sending it back into the energy grid. Having access to all your solar energy when and where you need it most means you're less affected by rising electricity costs, grid outages, and energy price fluctuations.

• Backup power during outages: One of the main benefits of solar batteries is that they provide backup power during grid outages. This can be especially valuable if you live in an area prone to natural disasters, extreme weather, or frequent power interruptions. 
• Maximized self-consumption: Without a solar battery, excess solar energy produced by your panels is sent back to the grid. In many cases, your local power utility will grant you energy credits for any excess solar electricity you send back into the grid, but these credits are generally much lower value.  With a battery, you can store and use your solar energy when you need it most, and avoid buying full retail priced utility power as a result. 

When deciding whether battery storage is worth it for you, first identify your main goals. If energy security is your primary objective, you must consider how important it is for you to have electricity during an outage. Maybe you rely on medical devices, or live in an area where extreme weather makes your HVAC system essential for survival. What is your health, comfort, and survival worth? 

If saving money is your primary goal, you must consider the lifetime of the battery and the total cost to install it versus how much money the battery could save you over its operational lifetime. It's also worth considering whether you're eligible for any federal or state level solar battery incentives. 

How solar power works, step-by-step

By now you have a good understanding of what solar energy is, how solar panels produce electricity, and different components in a solar energy system. But how does it all work together? Let’s break down each step of the solar power process:

• Step 1: Sunlight absorption: Sunlight hits your solar panels and is absorbed by the photovoltaic cells, initiating the energy conversion. 

• Step 2: Creation of electric current: The energized cells cause electrons to move, creating a flow of DC electricity. This is sent to the solar inverter.

• Step 3: Conversion to usable energy: The inverter takes over and converts DC into AC electricity so it can be used to power your home’s appliances.

• Step 4: Distribution through your home: The AC energy is sent to your electric panel and distributed throughout your home to power your appliances.

• Step 5: Excess energy sent to the grid: If your solar energy system produces more energy than you need, excess electricity is sent back to the grid through your utility meter. This also records the amount of electricity you send to provide data for billing. 

• Step 6: Energy storage: If you have a solar battery system, excess energy is stored for off-peak hours, emergency backup, or a combination of both. 

• Step 7: Monitoring & maintenance: Your solar meter monitors energy production and consumption so you can track the performance of your panels and maximize your solar investment. Occasional maintenance, such as cleaning your solar panels, will ensure your system keeps operating efficiently into the future.

What’s involved in solar power installation?

One of the biggest questions people ask when investigating solar energy is what’s involved in the installation process? Below, we give you a step-by-step look at our solar installation process here at Sun Valley Solar.

Step 1: Consultation to evaluate your energy needs

The first step in the solar installation process is the consultation. During this consultation (which we offer for free, with no obligation - click here to get started), you’ll meet with one of our experienced solar integrators who’ll evaluate your home and energy needs. 

To do this, they’ll ask questions about your energy usage, analyze past utility bills, and evaluate your roof’s suitability for solar panels. Our solar consultants will also be available to answer any questions or concerns you have about solar energy. 

Step 2: Customized preliminary design

After the consultation, we’ll draw up a preliminary design that addresses your solar energy goals. At this stage, you’ll be provided with a quote estimate and an initial calculation of your return on investment - and everything is still obligation-free. 

If you decide to continue, we’ll conduct an on-site inspection of your roof to confirm our preliminary design and make any final changes to the system configuration to ensure it suits your location and surroundings. 

Step 3: Financing & incentives

If you need help with financing, our team will help you explore different options and provide details about solar incentives available in your area. These incentives can help you save as much as 30% of the total purchase price. Once financing is secure, we’ll begin with the installation. The installation process itself is relatively fast, often one day or a few, depending on the size of the system. But permitting and scheduling the installation can take weeks to months, depending on the time of year. In Arizona, we always advise people to shop for solar in the winter. This ensures that the system is most likely to be installed and ready when the expensive summer months arrive and your electric bills start to climb. 

Step 4: Final connection

After your system is installed, your electric utility will make the final connection to the grid. Again, this can take anywhere from a few days to a few weeks. And that’s it - you now have solar! Enjoy the cost savings, energy independence, and feel-good factor of using renewable energy. 

Summary: How does solar power work?

Solar power harnesses the sun’s energy to generate clean and sustainable electricity. By making use of this abundant power source, solar technology allows you to reduce your carbon footprint, have more control over your energy supply, and enjoy significant cost savings in the long-term. 

If you’re ready to explore the potential of solar power, our team is ready to help. At Sun Valley Solar Solutions, we've helped thousands of homeowners in Arizona navigate their journey into clean and affordable solar energy. We understand that going solar is a big investment, and that’s why we offer a free, no-obligation consultation and customized quote. Contact us now to receive tailored advice and solar solutions that meet your unique needs and budget.