Solar Basics March 15, 2024 6 min read

How Solar Panels Work: A Simple Guide for Homeowners

A clear, jargon-free explanation of how solar panels convert sunlight into electricity — and how that electricity powers your home.

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Solar panels seem like magic — sunlight goes in, electricity comes out. But the science behind them is actually pretty straightforward. Understanding how your system works helps you get the most out of it and spot problems early.

The Photovoltaic Effect

Solar panels work through something called the photovoltaic effect — discovered in 1839 by French physicist Edmond Becquerel. When photons (light particles) from the sun hit a silicon cell, they knock electrons loose. Those free electrons create an electric current.

Each solar panel is made up of dozens of individual silicon cells. When sunlight hits them, they generate direct current (DC) electricity. Your home runs on alternating current (AC), so the next step is converting it.

The Inverter: DC to AC Conversion

Your solar system includes an inverter — the brain of the operation. It converts the DC electricity from your panels into the AC electricity your appliances use.

There are two main types:

  • String inverters — one central inverter for the whole system. Less expensive, but if one panel is shaded, the whole string underperforms.
  • Microinverters — one small inverter per panel. More expensive, but each panel operates independently. Pell Solar primarily installs Enphase microinverters for this reason.

What Happens to the Electricity

Once your panels generate electricity, it flows through your home's electrical panel. Your appliances use it first — lights, HVAC, refrigerator, EV charger. If you generate more than you use, the excess flows to the grid (or charges your battery).

Under California's NEM 3.0 rules, excess electricity sent to the grid earns you credits — but at a lower rate than before. This is why pairing solar with a Tesla Powerwall battery is now essential. Instead of sending cheap daytime energy to the grid, you store it and use it at night when rates are highest.

The Role of Net Metering

Your utility meter tracks electricity flowing in both directions. When your panels produce more than you use, the meter runs backward (or records a credit). When you draw from the grid at night, the meter runs forward.

At the end of each billing period, you pay only the net difference — hence "net metering." With a properly sized system and battery, many Pell Solar customers reduce their SCE bill to near zero.

How Much Electricity Do Panels Produce?

A typical residential solar panel produces 400–450 watts under ideal conditions. A 16-panel system (6.8 kW) produces roughly 25–30 kWh per day in Southern California — enough to power an average home.

Production varies by:

  • Time of year (more sun in summer)
  • Panel orientation and tilt
  • Shading from trees or other structures
  • Panel temperature (hot panels are slightly less efficient)

Monitoring Your System

Every Pell Solar installation includes a monitoring system — either Enphase Enlighten or Tesla's app. You can see exactly how much energy each panel is producing in real time, track your savings, and get alerts if something isn't working correctly.

The Bottom Line

Solar panels convert sunlight to DC electricity → an inverter converts it to AC → your home uses it → excess goes to a battery or the grid. It's a clean, silent, low-maintenance system that can power your home for 25+ years.

If you're curious how much a system would produce for your specific home, get a free quote from Pell Solar. We'll design a system sized exactly for your energy usage.

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