How Solar Energy
Systems Work

Solar energy is a great clean energy alternative to traditional forms of power. Not only can solar panels help save you money on your electricity bill, but they can also help lower your carbon footprint and protect the environment.

Solar energy systems continue to grow in popularity in the United States as solar technology improves and systems become more affordable. You’ve most likely heard of solar panels before, but you might not be aware of how solar energy works and how it can benefit you.

In this guide, we explain everything you need to know about solar energy systems. We’ll tell you what solar energy is, how solar energy works, and list some of the benefits you might see from installing a solar energy system. Finally, we’ll answer some questions that you might have about solar electricity.

What is solar energy?

Solar energy is a form of renewable energy that comes from the sun. It’s the cleanest, most abundant form of energy on the planet. There are three main technologies that harness solar energy. They include:

Photovoltaic cells (PV) absorb sunlight directly to create electricity. This electricity can then be distributed to appliances and machines in homes and businesses.
Solar heating and cooling (SHC) uses the heat from the sun to warm water or a general area.
Concentrating solar power (CSP) uses solar heat to run electricity-gathering machines like turbines for power plants.

The solar panels that people install in their homes use photovoltaic technology. That’s the technology we’ll be focusing on in this guide. Solar panels attached to a home can use the photovoltaic effect to turn sunlight into usable energy.

Can solar energy power your home?

You can enjoy the benefits of the sun’s energy by attaching photovoltaic panels to your home. The government even tries to encourage citizens to use solar energy by offering tax credits to households that install solar energy systems.

Utility companies can even benefit from homes that use solar energy. When solar power systems produce an excess of electricity, power companies can redistribute it to other customers on their grid.

How do home solar energy systems work?

Sunlight doesn’t just fall from the sky as electricity that we can use. So, how do solar panels work? There’s a whole electricity generation process that light has to go through before it can power our home appliances and systems.

To produce energy, sunlight has to be broken down using the photovoltaic effect. In the next few sections, we’ll go over exactly how solar panels work to transform sunlight into clean energy you can use in your home.

Solar panels receive sunlight

Solar photovoltaic panels are generally installed on the rooftop of a home to capture sunlight. Each solar panel has a layer of photovoltaic cells, an aluminum frame, a glass cover, and wiring.

When the sun shines, photovoltaic cells (solar cells) on the panel take in sunlight. If it’s a cloudy day, the PV cells will still absorb some sunlight, just not as much as they would on a clear, sunny day.
Solar panel cells activate and produce a current

On the inside of every cell, there’s a semiconductor wafer that consists of two layers of silicon: a positively charged layer and a negatively charged layer. These layers function to form an electric field.

The panel cell gets energized when light energy comes in contact with it. This causes electrons to detach from atoms in the semiconductor wafer. The electrical field around the wafer causes the detached electrons to circulate, producing an electrical current.
An inverter converts DC electricity to AC electricity

At this point, the electricity that your panels have produced isn’t in a form that you can use in your home. It still needs to be converted from direct current (DC) electricity into alternating current (AC) electricity.

To do this, your solar power system uses an inverter. Generally, a system will only have one- or two-phase inverters depending on the size of the house. However, some systems will have microinverters attached to each panel.
Converted electricity enters your home

Now that the electricity is in a form that your home can use, it travels to your electrical panel and is sent to various areas of your home to power your systems and devices the same way electricity from your utility company would.

Generally, even if you have a solar energy system, you’ll still need to stay connected to your utility company’s power grid. There might be times when your system won’t be able to absorb enough sunlight to power your home. In these situations, you’ll be able to use power from the utility company.

However, your solar energy system may sometimes produce an abundance of energy, beyond what you need to power your home. If you have a net meter system, you’ll be able to send the excess electricity back through the electric grid where it can be used by your neighbors. Many utility companies provide financial credits to homes that send excess energy back through the grid.

Curious how solar inverters work?
Check out this related article.

Benefits of home solar energy systems

But what can a solar energy system do for you? There are a lot of potential benefits that you can get from using solar energy in your home. Here are a few of the top reasons you might want to consider using solar energy in your home.

Utility savings: Using solar energy can help save you money. It decreases the amount of energy you need to use from your power company, lowering your utility bills. How much you’ll save, though, will depend on factors like how much sun there is where you live, your overall electricity usage, and the electricity rates in your location.
Tax benefits: The federal government offers an investment tax credit (ITC) to homeowners who install solar energy systems. Depending on how much you spend on a system, the credit can drastically reduce your tax bill.
Added home value: Solar energy systems can increase the value of your home. A solar energy system is considered an upgrade to many home buyers. And depending on energy prices in your location, home buyers might find the incentives of saving money on energy costs attractive.
Environmental impacts: Solar technology provides energy that’s renewable, environmentally friendly, and doesn’t emit carbon dioxide or other greenhouse gases into the atmosphere. If issues like protecting the environment and climate change are important to you, using solar energy is a great way to decrease your carbon footprint.

Solar energy system FAQs

Now that you have a basic idea of how solar power works, we’ll answer some commonly asked questions about solar energy.

Are home solar energy systems expensive?

There are several factors that will determine the cost of solar panels for your home. Whether you choose a model with a single inverter or multiple microinverters, the amount of energy you need your system to create, and the size and design of your home can all have an impact on the cost of your solar energy system.

When you reach out to Vivint, we’ll connect you with a specialist who can provide you with a free quote for a system that will fit your needs. They’ll also tell you about our financing options that can make the switch to solar energy easier.

Are home solar energy systems hard to install?

It’s possible to DIY PV panel installation. Some panels are even designed for you to install yourself. However, DIY solar installation can be risky, as you’ll be working on the roof and with electrical equipment. Some areas also only offer solar energy tax rebates if your panels are installed by a certified professional.

A professional installer will also know things like what angle to position your panels so that they receive the most sunlight. Many certified companies will even offer warranties if your panels need to be fixed or replaced. These warranties might be voided when you perform your own installation.

There’s a lot that goes into the installation of a solar panel system even before you start the physical installation process. When you purchase solar panels with professional installation, a specialist will come to your home to survey your property and decide on the best design and location for your panels.

The installation expert might suggest for you to do things like remove trees on your property that could block sunlight, fix up your roof, or make upgrades to your home or electrical system.

The expert will then create a design plan for your panels and send it to your local permitting departments and utility company to make sure the plan is code compliant for your area. Codes can vary greatly from city to city. It can take a few months for your panels to be designed and approved by all the necessary departments.

Actually installing a solar energy system takes a lot less time than preparing to install one. PV panels can be installed in as little time as a few days. Here are the steps for actually installing your solar energy system.

Set up the base structure for your panels. You might have roof-ground mounts or flush mounts. Usually, these will be set up so that your panels face south to get the most sunlight possible.
Secure your solar panels into your mounted base structure using bolts.
Perform the necessary electrical wiring. Typically, you’ll use a universal connector, like an MC4, to connect your PV panels to your electrical system.
Attach your solar energy system to a solar energy inverter.
Attach the solar inverter to the grid input and to your solar battery, if you have one.
Activate the solar inverter.

Can solar energy be created on a cloudy day?

Your solar energy system can generate power on cloudy days. However, it won’t create as much energy as it would on a sunny day. The more direct sunlight your PV panels are exposed to, the more energy they’ll be able to produce.

Is solar power considered "clean energy"?

The sun is one of the best clean energy sources. Unlike other forms of energy—like fossil fuels—solar power is carbon-free, renewable, and sustainable. And it doesn’t emit any greenhouse gasses.

Are solar panels a good home investment?

Solar panels are a long-term investment. A set of panels can require a substantial initial investment, but the expense can be offset by your energy savings over the next 25 to 30 years, or however long your panels last.

The government also offers tax incentives to people who use solar energy. The federal tax credit for solar energy systems built in 2022 currently sits at 26% (and 22% for solar energy systems installed in 2023). That means if you spend $10,000 on solar panels for your home in 2022, you can reduce your taxes for the year by $2,600.

Going solar can even increase the value of your home. Panels are trendy items that appeal to both environmentally conscious home buyers and those looking to cut down on their energy costs.

Transitioning to a smart home? See how Vivint can help

If you’re looking for an environmentally friendly way to save money on power costs, a solar energy system might be right for you. By installing solar panels on your home, you can enjoy clean energy and feel good about lowering your impact on the environment.

Another way to improve the energy efficiency of your home is to make it smart. Smart homes use around 40% less energy than other homes, on average. Vivint can help you design and install a smart home setup that meets all your needs and preferences.

Request a consultation to see how a Vivint professional can help you find quality smart products for your home, like security systems, thermostats, lighting equipment, and more.