Solar panels turn energy from the sun's rays directly into useful energy that can be used to power homes and businesses. PV panels use the photovoltaic effect to turn the sun’s energy directly into electricity, which can supplement or replace a building’s usual supply.
A PV panel is made up of a semiconducting material, usually silicon-based, sandwiched between two electrical contacts. To generate as much electricity as possible, PV panels need to spend as much time as possible in direct sunlight.
When sunlight strikes the panel and is absorbed, it knocks loose electrons from some of the atoms that make up the semiconductor. The semiconductor is positively charged on one side and negatively charged on the other side, which encourages all these loose electrons to travel in the same direction, creating an electric current.
The contacts capture this current in an electrical circuit. The electricity PV panels generate is direct current (DC). Before it can be used in homes and businesses, it has to be changed into alternating current (AC) electricity using an inverter. The inverted current then travels from the inverter to the building’s fuse box, and from there to the appliances that need it.
PV systems installed in homes and businesses can include a dedicated metering box that measures how much electricity the panels are generating. As an incentive to generate renewable energy, energy suppliers pay the system’s owner a fixed rate for every unit of electricity it generates - plus a bonus for units that the owner doesn’t use, because these can help supply the national grid. Installing a PV system is not cheap, but this deal can help the owner to earn back the cost more quickly - and potentially even make profits.