The most common type of solar technology is photovoltaic (PV) cells. These cells are made of semiconductor material and are arranged in a panel. When sunlight hits the panel, the energy of the light is absorbed and then converted into direct current (DC) electricity.

 

This electricity is then sent to an inverter, which converts the DC electricity into alternating current (AC) electricity, which is the type of electricity used in homes and businesses. The electricity generated by solar technology can be used to power anything that uses electricity, including lights, appliances, and even electric vehicles. Solar panels can also be used to heat water or air, as well as to produce hot water.

​

During the day, when the solar array is producing electricity and you are using electricity, the solar electricity will first get used in your home. The solar electricity replaces grid electricity, which reduces your electricity bill cost. In this situation, you also avoid variable transmission and distribution costs which provides additional financial benefit.