Solar panels work through a series of events that allow customers to take advantage of the sun’s rays. This process essentially takes place in five steps: Sunlight hits the solar panels on rooftops. Solar cells are activated and produce electrical currents. Electrical energy is converted via a solar inverter. Converted electricity can be used to power you’re home. Excess electricity can be fed back into the grid for a small rebate off your energy bills. Your solar panels are made up of silicon photovoltaic (PV) cells. When sunlight hits your solar panels, the solar PV cells absorb the sunlight’s rays, producing electricity via the Photovoltaic Effect. The electricity produced by your panels is called Direct Current (DC) electricity, which is not suitable for your home by your appliances. Instead, the DC electricity is directed to your central inverter (or micro inverter, depending on your system set-up).  Your inverter can convert the DC electricity into Alternating Current (AC) electricity, which can be used in your home. From here, the AC electricity is directed to your switchboard.  A switchboard allows your usable AC electricity to be sent to the appliances in your home. Your switchboard will always ensure that your solar energy will be used first to power your home, only accessing additional energy from the grid when your solar production is insufficient.  All households with solar are required to have a bi-directional meter (utility meter), which your electricity retailer will install for you. A bi-directional meter can record all the power drawn to the house and record the amount of solar energy exported back to the grid. This is called net-metering.  Any unused solar electricity is then sent back to the grid. Exporting solar power back to the grid will earn you a credit on your electricity bill, called a feed-in tariff (FiT). Your electricity bills will then consider the electricity you purchase from the grid, plus credits for the electricity generated by the solar power system that you don’t use.