How Do Solar Panels Work? PV Cells, Inverters & Net Metering Explained

From sunlight to DC electricity

Photovoltaic (PV) cells in each panel absorb photons and release electrons, creating direct current (DC). A 400W panel produces DC power proportional to the sunlight hitting it — about 1.5–1.8 kWh/day at average US sun with real-world losses.

The inverter converts DC to AC

Your home and the grid run on alternating current (AC). A string inverter (one box, lower cost) or microinverters (one per panel, better shading tolerance) convert the DC. The inverter is the part most likely to fail — most carry 10–25 year warranties.

Net metering and your bill

Your meter runs both ways: you draw from the grid at night and export surplus during the day. Under full-retail net metering, exports are credited at your bill rate. Under net billing (NEM 3.0), exports pay a lower rate — which is why batteries matter in those states.

How do solar panels actually work?

Photovoltaic cells absorb sunlight and release electrons, producing DC electricity. An inverter converts it to AC for your home, and net metering handles the surplus you export.

What are the main parts of a solar system?

Panels (PV modules), an inverter (string or micro), racking, a bidirectional meter, and optionally a battery for storage.

Do solar panels work on cloudy days?

Yes, but at reduced output — typically 10–30% of sunny-day production. Cloudy climates just need more panels.