How Do Solar Panels Work?
Solar panels turn daylight into electricity your home can use straight away. Here's the whole journey in plain English — from the roof to your sockets, your battery and the grid.
On this page
- Solar panels convert daylight into direct current (DC) electricity — no direct sun required.
- An inverter turns that into the alternating current (AC) your home and appliances use.
- Your home uses solar first; a battery stores the surplus for later instead of exporting it cheaply.
- Panels still generate on cloudy days, just less than in bright sun.
The Basics
A solar panel is made of many photovoltaic (PV) cells, usually silicon. When daylight hits a cell, it knocks electrons loose and creates a flow of electricity. Panels use direct sunlight as well as diffuse daylight, so they still generate in cloudy conditions, with lower output than in bright sunlight.
Step by Step
- Daylight hits the panels on your roof, generating direct current (DC) electricity.
- The inverter converts that DC into alternating current (AC) — the type your home uses.
- Your home uses it first, powering whatever is switched on at the time.
- Surplus is stored in a battery, if you have one, for use later.
- Any remaining surplus is exported to the grid, and you're paid for it.
What the Inverter Does
The inverter is the brain of the system. Its main job is converting DC to usable AC, but it also manages the flow — deciding when to power your home, charge your battery or export — and lets you monitor generation from an app.
Where a Battery Fits
Without a battery, you use solar only as it's generated and sell the rest back cheaply. A battery stores your cheap daytime energy so you can use it during the expensive evening peak — meaning you buy far less from the grid. Our battery guide covers sizing and payback.
Exporting to the Grid
When you generate more than you can use or store, the surplus flows back to the grid. Under the Smart Export Guarantee, your supplier pays you for every unit you export.
Do They Work on Cloudy Days?
Solar panels generate electricity from both direct sunlight and the diffuse daylight that reaches them through clouds. They produce more power in bright sunlight, but they still work on cloudy days.
Your Questions, Answered.
How do solar panels generate electricity?
Photovoltaic cells in each panel convert daylight into direct current (DC) electricity. An inverter then converts that into the alternating current (AC) your home and appliances use.
Do solar panels work without direct sunlight?
Solar panels generate electricity from both direct sunlight and the diffuse daylight that reaches them through clouds. They produce more power in bright sunlight, but they still work on cloudy days.
What does a solar inverter do?
The inverter converts the DC electricity from your panels into usable AC, and manages whether energy powers your home, charges your battery or is exported to the grid.
What happens to solar energy I do not use?
It charges your battery if you have one, and any remaining surplus is exported to the grid, where your supplier pays you for it under the Smart Export Guarantee.
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