How Do Solar Panels Work?

Solar panels harness the sun’s energy to power your home, and knowing how they work can help when deciding on an installation. Check out this guide for a breakdown of how solar panels convert sunlight into electricity and power your home.

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What Is Solar Energy?

Solar energy comes from the sun, which is a constant source of energy we can harness to power our homes and technology. By using photovoltaic (PV) panels or solar thermal systems, we convert sunlight into clean, renewable energy.

Solar technology presents a sustainable alternative to conventional fossil fuels due to its minimal environmental impact and long-term cost savings.

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How Do Solar Panels Work?

Wondering how those shiny panels on rooftops turn sunlight into electricity? It’s all about the magic of silicon solar cells. These cells are the building blocks of solar panels, which, when combined, form what’s known as a solar array. You’ve probably seen these large sheets of panels on homes or businesses.

Here’s how they work: Each solar cell is a photovoltaic (PV) cell, equipped with conductors that create an electric field. When sunlight, composed of tiny particles called photons, hits the cells, it kicks electrons free from their atoms. This movement of electrons generates direct current (DC) electricity.

The DC electricity flows to an attached inverter or microinverter, which converts it into alternating current (AC) electricity. This is the type of power your home uses to run appliances and systems. If you have a solar battery, any excess electricity can be stored for later, or it can be sent back to the grid, depending on your utility setup. The best-performing solar batteries are able to store more power and support your home longer during an outage.

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Types of Solar Panels

There are three main types of solar panels available for residential use: monocrystalline, polycrystalline, and thin-film. The type you use determines your solar panel system’s performance and longevity. Below is a breakdown of each solar panel type.

Monocrystalline Solar Panels

Monocrystalline solar panels—often referred to as “mono” panels—are made from a single piece of silicon. These are generally the most expensive and last the longest. You can easily recognize monocrystalline panels due to their dark black color, which many homeowners find to be more aesthetically pleasing.

Pros and Cons of Monocrystalline Panels

Pros

• Highest efficiency rates, typically over 20%
• Longest average lifespan—35+ years
• Require the least amount of roof space

Cons

• More expensive than other solar panel types
• Efficiency sometimes decreases in colder climates

Polycrystalline Solar Panels

Polycrystalline panels use older solar panel technology, so they’re slightly more affordable than monocrystalline panels. However, you will likely need more of them to power your home because they’re less efficient. As a result, they may end up costing as much as a smaller number of monocrystalline panels.

Polycrystalline panels are also more noticeable because they have a deep blue color. These panels are best for budget-conscious homeowners who have a lot of roof space.

Pros and Cons of Polycrystalline Panels

Pros

• More affordable than monocrystalline solar panels
• Average efficiency rate of 15%–17%
• Panels last 25–35 years

Cons

• Less heat-tolerant than monocrystalline panels
• Noticeable blue color
• Require more roof space

Thin-Film Solar Panels

Thin-film panels are the least efficient type, which is often used by the best-regarded affordable solar providers. They’re most commonly used in large, industrial solar installations where space isn’t a constraint. These panels have the sleekest appearance among the three panel types—they’re entirely black, flat, and flexible in shape and size. 

Thin-film panels don’t require the scaffolding construction that monocrystalline and polycrystalline panels do. They’re best for small solar projects, such as converting a boat or RV, or small commercial buildings with thin metal roofs, such as warehouses. 

Pros and Cons of Thin-Film Panels

Pros

• Easy to transport
• High heat tolerance compared to monocrystalline and polycrystalline solar panels
• Least expensive

Cons

• Efficiency ratings vary greatly depending on material type
• Less durable than other panel types
• Require the most amount of roof space

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The Cost of Solar Panels

According to the Solar Energy Industries Association (SEIA), solar panels cost an average of $3.45 per watt in 2023. This amounts to $20,700 for a typical 6-kilowatt (kW) system. Solar panel costs vary widely from state to state and depend on the following factors.

• Amount of sunlight: The more sun your home receives daily, the greater your potential savings. The National Renewable Energy Laboratory (NREL) has a map showing how many hours of full sunlight different areas average per day.
• Household electrical demand: This is the electricity your household uses each month. Homes with higher electrical demands require larger solar systems. For instance, homes with gas appliances use less electricity than those with all electric appliances. You can get a sense of your electrical demand by reviewing your electricity bills from the last year.
• Labor: Labor costs vary by location and are more expensive in areas with higher living costs. Different solar providers also charge different prices. Your initial quote will include labor.
• Location: Solar panels cost more in some states than others, primarily due to regional electricity costs. Peak sunlight hours are also a factor. The more sunlight exposure your home receives, the more renewable energy you’ll be able to generate.
• Payment options: You can choose to pay for your solar system upfront in full, by taking out a loan, or entering into a solar lease or Power Purchase Agreement (PPA). These solar panel payment options affect how much you’ll pay in the long run. Full payments and loans are the most cost-effective because they qualify you for tax incentives. However, you’ll pay more over time with a loan due to interest rates. Leases and PPAs are cheaper upfront but disqualify you from incentives.
• Panel quality: The equipment you choose dramatically impacts your electricity production. You’ll want to find the most efficient solar panels that fit your budget. More expensive equipment doesn’t always mean higher savings, while the cheapest option can sacrifice performance. Find the right balance between quality and price.
• Panel size: A larger solar system costs more because it requires more labor and more equipment. However, it can yield greater savings over time.
• Tax incentives: Federal and state solar incentives can reduce installation costs. Though state incentives vary by municipality and utility company, every homeowner can take advantage of the federal solar tax credit, which provides a federal tax deduction equal to 30% of your solar costs. Note that you must pay for your system in full or take out a loan to qualify.
• Solar panel type: Monocrystalline panels are more efficient but more expensive than polycrystalline panels. Homes with limited roof space require more efficient panels.

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How Solar Panel Installation Works

Solar panel installation is relatively straightforward because the solar company handles most, if not all, of the steps for you. A representative begins the process by setting up a consultation to assess your energy needs and home design. Then, the solar installer creates a system tailored to your home’s specifications. It also handles required permits from your local municipality. Finally, a team will install the system and conduct final inspections.

When we surveyed homeowners about solar installations in 2022, 65% of respondents said the entire installation process took less than two months, from requesting a quote to activation. However, the process can take longer, and delays are relatively common, with over 42% reporting delays due to installation difficulties or unforeseen problems. Paperwork, permit approvals, and communication issues can also cause delays.

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Our Conclusion

Going solar may seem complicated, but choosing the best solar panels for your home and a reputable installer will ensure your solar energy system operates at peak performance. A top solar installer will also make the experience approachable and stress-free. You should consider the pros and cons of going solar before making a decision.

We recommend getting at least three quotes from different solar companies to compare panel options, warranties, and pricing.

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FAQs About How Solar Panels Work

How do solar panels work when the power goes out?

Solar panels continue working during power outages as long as the sun is still shining. However, you’ll need a solar battery to use electricity during this time. A solar battery stores excess energy generated by your solar panels to use during outages or low sunlight hours. 

How many solar panels would it take to power a house?

The average 1,500-square-foot home needs 17–25 solar panels to provide adequate power.

How long do solar panels take to pay for themselves?

Various cost factors determine how long it will take for your solar power system to pay for itself, but the average solar payback period is 6–10 years.

Do solar panels work in the rainy season?

Yes, solar panels work in the rain. Solar panels work in most weather conditions, including during thunderstorms, in snow, and on cloudy days.