Solar panels and other diverse components are used in solar systems, also known as PV systems or solar power systems, to convert sunlight into electricity.

Solar panels are usually mounted on the roof of residential properties with solar systems installed, to maximise their exposure to sunshine. Sunlight is absorbed by the solar panels, which then transform it into DC energy. After passing through the inverter of the solar system, the direct current (DC) energy is transformed into alternating current (AC).

A household will use AC electricity instead of energy from the grid or batteries once it has been converted.

A solar system's capacity to generate power is determined by its size, the surrounding conditions, the length of daylight, and the system's efficiency.

In the event that a home with a grid-connected solar system is not producing enough electricity, the system will draw from the electrical grid as a backup source. A backup power source, such as a generator or battery, is used by a home with an off-grid solar system.

Note: Depending on the type of inverter the solar system has, a battery may also be added in a grid-connected system.