A Detailed Guide About How Solar Panel Works and Its Key Components

Sep 12, 2025

Source: Freepik

Did you know that surveys suggest that around 250 million Indian houses can install solar panels on their roofs, generating over 637 Gigawatts (GW) of electricity? However, not many have explored the potential. We have so far only 8.5 lakh households that have installed rooftop solar connections.

Maybe it’s the myth and mystery surrounding solar energy that causes people to shy away from its usage. Through this blog, you can learn how solar panel works, their key components, life-changing advantages and some helpful tips to help you keep your solar panel safe.

Explore Different Components of a Solar Power System

A solar power system consists of multiple components, each connected to perform a specific function. Learning more about the components will help you understand all about solar panels and how they work:

  • Solar Panels

    To know how does a solar panel work, you have to get familiar with its main components, the solar panel. These are the visible parts of the power system that absorb sunlight. Solar panels are made of smaller solar cells.

  • Ā 
  • Inverter

    Every energy source needs an electrical component that can help convert DC to AC voltage and offer stable power to your appliance. An inverter does this job in a solar energy system. Having an efficient inverter will help lower energy wastage and your house bills.Ā 

  • Mounting System

    A mounting system is used to place the solar panel to offer a customisable and sturdy structure. You can tilt the panel for maximum coverage and make sure it stays safe in different weather conditions.

    Source – Freepik
  • Solar Batteries

    A battery is necessary to ensure power output during the night. It stores the energy during the day and saves it for any emergency requirement at night. Pick the correct voltage and power capacity to ensure an optimal power outage and smooth performance.

How Does Solar Panel Energy Work

Let’s finally put your curiosity about how solar panel works to rest. Here’s a simple step-by-step guide to help you understand how the sunlight is converted into electricity to help you run your TVs, lights, laptops and more:

Step 1: Sunlight Absorption

The solar panels are planted on the top of the roof, where there is ample sunlight during the day. When the sun starts to shine bright and hits the panels, they absorb the sunlight. These photovoltaic cells are crafted using semiconductor materials such as silicon, which helps boost the absorption process.Ā 

Step 2: Activation of Electrons

When the photons in the sunlight are absorbed by the cells, they excite or activate the electrons, causing them to flow freely. With proper wiring and a system, these electrons start to generate the flow of direct current electricity that is passed through a connecting wire.

Step 3: Conversion of DC to AC

Now, once the flow of DC energy is created, it is passed into the solar inverter. Now, the inverter, just like with every other energy source, such as batteries and cell fuels, starts to convert DC into AC electricity. It does that by rapidly closing and opening transistors. This AC electricity is now suitable for your household consumption and can run your daily appliances. The inverter also stabilises and regulates the voltage as per your house’s needs.Ā 

Step 4: Storing Excess Power

One of the key benefits of any solar energy system is the ability to store the excess power supply. You need a compatible solar battery to store your energy, so that you can use it in case of power cuts at night. However, another point in the guide about how solar panel works, if you are connected to a grid-tied system, the excess energy is sent off to the grid. This ensures minimal wastage and can earn you some rewards depending on what your utility company offers. A net meter can be installed to calculate any excess electricity sent off.Ā 

Factors to Consider Before Installing a Solar Energy System at Home

Now that you have a good knowledge of how solar panel works, you can use them to invest in a solar plant that fits your needs. However, before you start looking for options, here are some key factors to keep in mind when installing a solar energy system at your home:

Calculate Your Energy Needs

List down all the heavy appliances that you are planning to run on your solar plant and calculate the total energy required. Energy is calculated in kWh (kilowatt-hours).

Compatible ComponentsĀ 

Rather than buying each component, such as the solar inverter, panels and battery separately without any compatibility with each other, opt for a holistic approach. Check the maximum power required, storage needs and voltage to find the perfect system.Ā 

The Placement

Make sure to install your panels in an area with maximum sunlight coverage. Avoid any trees and shadows from tall buildings.Ā 

Fulfill All Regulations and Permits

Ensure all local permits and licenses are fulfilled before installing the plant. You can also check for any tax credits or government rewards available for solar plants.Ā 

Conclusion

With ever-changing policies and global focus on cleaner energy, it’s high time we shift towards solar energy systems for our homes. You can enjoy lower electricity bills and no tension caused by untimely power cuts. However, to make sure that you enjoy the full benefits of an ideal solar energy system, it is crucial to understand how solar panel works. Green Energy, Green Future!

FAQ's

How can I choose an ideal solar panel?

When choosing a solar panel, consider its compatibility, performance in low-light conditions, energy efficiency, and all-weather protection features.Ā 

Is this Helpful?

Regular cleaning of solar panels will help keep the surface clean from dust, leaves and oil, hampering the absorption process. Proper maintenance and cleaning will improve the performance and longevity of your panels.

Is this Helpful?

Ā No! Solar panels do not charge or produce electricity at night. They rely on sunlight to generate electricity through the photovoltaic effect.

Is this Helpful?