How Do Solar Panels Work?

Sep 25, 2025
Solar Energy
How Do Solar Panels Work?

How Do Solar Panels Work?

Solar panels convert sunlight into electricity through a process called the photovoltaic effect, where silicon cells absorb solar energy, generating direct current (DC) electricity that is then converted by an inverter into alternating current (AC) for use in homes and businesses.

Here at Solen Energy we supply a comprehensive range of solar panels, inverters, and mounting systems suitable for domestic and commercial projects. Our in-house design service ensures systems are specified to maximise performance and reliability.

Is Solar Power A Clean Energy Source?

Solar power is widely recognised as one of the cleanest energy sources available today. Unlike fossil fuels, solar panels generate electricity without producing air pollution or greenhouse gases during operation. The photovoltaic effect converts sunlight directly into electricity without combustion or emissions, making the electricity generation process itself completely emissions-free.

The environmental benefits of solar power include:

  • Zero direct carbon emissions during electricity generation
  • No air pollutants like sulfur dioxide, nitrogen oxides, or particulate matter
  • Silent operation with no noise pollution
  • Minimal water usage compared to conventional power plants
  • Renewable and sustainable, drawing from the sun's abundant energy

While manufacturing, transportation, and installation of solar panels do create some environmental impact, the carbon footprint of solar power systems is typically offset within 1–4 years of operation, after which they provide clean energy for decades. Modern solar panels typically last 25–30 years, producing more than 80% of their original power even after 25 years, making them an increasingly sustainable solution for meeting global energy needs.

At Solen Energy, we are committed to supplying the highest quality solar and electrical components, backed by expert support and customer care throughout your installation journey.

When Was Solar Power Discovered?

Solar power has ancient roots, with evidence of humans using the sun's energy dating back to the 7th century BCE when magnifying glasses were used to concentrate sunlight to make fire. The photovoltaic effect—the principle behind modern solar cells—was first observed in 1839 by French physicist Alexandre-Edmond Becquerel when he discovered that certain materials produced small amounts of electric current when exposed to light.

The first practical solar cell wasn't developed until 1954 at Bell Laboratories by scientists Calvin Fuller, Daryl Chapin, and Gerald Pearson. Their silicon-based solar cell achieved about 6% efficiency, marking the birth of viable photovoltaic technology. Before this breakthrough, selenium-based solar cells had been created in the 1880s but were extremely inefficient. The space race of the 1950s and 1960s accelerated solar technology development, as satellites powered by solar cells became the first major application of photovoltaic technology. The energy crisis of the 1970s further stimulated research and development, eventually leading to the sophisticated silicon-based solar panels that dominate today's market with efficiencies exceeding 20%.

Solen Energy works with industry-leading manufacturers such as LONGi, Canadian Solar, and JA Solar to offer reliable, high-efficiency panels for every type of installation.

How Exactly Is Electricity From Solar Energy Produced?

Solar panels generate direct current (DC) electricity, but most homes and appliances use alternating current (AC). This conversion process is essential for making solar energy usable in everyday applications.

The process works in several key stages:

  • Solar energy to DC electricity: Photovoltaic cells in solar panels absorb sunlight, creating an electric field between semiconductor layers (typically silicon) that causes electrons to flow in one direction, generating DC electricity.
  • DC to AC conversion: The solar inverter, often called the "brain" of the solar system, transforms DC electricity into AC through a process using H-bridge circuits with four switches. These switches regularly open and close to change the direction of current flow, creating the alternating pattern needed for AC power.
  • Maximum Power Point Tracking (MPPT): Most inverters include MPPT technology that continuously adjusts voltage and current to extract maximum power from panels under varying sunlight conditions.
  • Efficiency considerations: Inverters typically operate at about 90% efficiency, meaning some power is lost during conversion. This efficiency rate must be factored into calculations when determining available AC power from your system.

We stock a wide selection of inverters from reputable brands including SolarEdge, Fronius, and Huawei, with technical support available to ensure correct configuration and integration with battery systems where required.



The example above is for a standard residential Hybrid Inverter System.

  1. Solar Panels - PV cells on the panels capture sunlight and convert it into DC electricity.
  2. Hybrid Inverter - Converts DC electricity from the panels into AC for use in the home. Manages the flow of electricity between panels, home, batteries, and the grid.
  3. Battery Storage - Stores excess energy for later use, such as at night or during power cuts.
  4. Consumer Unit - Distributes electricity safely around the home to power appliances.
  5. Home Appliances - Your free solar electricity powers household appliances directly.
  6. The National Grid - Surplus energy is exported to the grid.


What’s The Difference Between Solar PV Panels And Solar Thermal Panels?

Solar PV (photovoltaic) and solar thermal systems both harness the sun's energy but serve fundamentally different purposes.

  • Solar PV panels convert sunlight directly into electricity using silicon cells, powering home appliances and electronics.
  • Solar thermal panels capture heat from the sun to warm a fluid (typically water and glycol) that circulates through tubes, primarily for heating water for domestic use in showers and taps.

The key differences include:

  • Efficiency: Solar thermal systems are significantly more efficient, converting 70–90% of solar energy into heat, while PV panels typically achieve only 15–23% efficiency
  • Space requirements: Thermal panels require less roof space due to their higher efficiency
  • Cost: Solar thermal systems are generally less expensive, averaging around £5,900 compared to £7,000–£8,000 for a standard PV system (plus potential battery storage costs)
  • Energy use: PV generates versatile electrical energy that can power multiple applications, while thermal produces "lower grade" energy limited to heating water
  • Storage: Thermal energy is stored in hot water tanks, while PV electricity must be used immediately, exported to the grid, or stored in batteries
  • Seasonal performance: Both systems perform best in summer, but thermal systems experience a more dramatic efficiency drop during winter months

Our technical team at Solen Energy can guide you through system selection, helping you determine the most appropriate and cost-effective solution for your needs.

What Are Solar Farms?

Solar farms are large-scale installations of photovoltaic (PV) panels designed to harvest solar energy and convert it into electricity on a utility scale. Unlike residential or commercial rooftop systems, solar farms (also called solar parks or solar power stations) typically cover expansive areas of land - anywhere from 1 to 100 acres - and are usually developed in rural locations with optimal sunlight exposure.

These installations typically include:

  • Ground-mounted solar panels that capture sunlight
  • Central inverters that convert DC power to AC power
  • Transformers and substations that prepare electricity for distribution
  • Control stations that monitor performance

Solar farms come in two primary varieties:

  • Utility-scale farms that feed directly into the electric grid (generally generating more than one megawatt)
  • Community solar farms that provide power to specific local communities through pooled investments

Approximately 25 acres of land is required for every 5 megawatts of installation, enough to power about 1,515 homes.

Solen Energy supports commercial and utility-scale installations with volume component supply, design assistance, and palletised courier-tracked deliveries for secure and timely dispatch.

Can Solar Power Be Generated On A Cloudy Day?

Solar panels do work on cloudy days, though with reduced efficiency. On overcast days, panels typically generate 10–25% of their normal output compared to sunny conditions. The density of cloud cover significantly impacts performance—light clouds reduce electricity production by about 24%, while heavy cloud cover can decrease output by up to 67%.

Several interesting factors affect cloudy-day performance:

  • The "edge of cloud" effect can temporarily boost electricity generation when passing clouds magnify and reflect sunlight back onto panels
  • Modern high-efficiency panels, particularly monocrystalline models, perform better in low-light conditions by capturing a broader spectrum of light wavelengths
  • Some premium panels include features like "backside mirrors" that give photons a second chance at absorption, improving cloudy-day performance

For UK residents considering solar installation, it’s worth noting that winter months bring both increased cloud cover and shorter daylight hours, resulting in seasonal output variations that should be factored into energy planning.

Our in-house design team at Solen Energy considers local weather patterns, orientation, and system performance throughout the year to ensure your installation meets expectations in all conditions.

Who Are The Largest Producers Of Solar Power Worldwide?

China dominates global solar power production, with approximately 710 GW of installed capacity as of mid-2024, accounting for nearly two-fifths of the world's total solar capacity. Beyond being the largest consumer of solar energy, China also manufactures 77.8% of the world's solar panels.

The world's largest solar panel manufacturers by shipment volume include:

  • Tongwei Solar (China) – Shipped 65.5 GW in 2023, with 70 GW annual production capacity and approximately £17 billion in revenue
  • JinkoSolar (China) – Shipped 47.2 GW in the first half of 2024 alone
  • JA Solar (China) – Shipped 36.2 GW in 2022 with products reaching over 135 countries
  • LONGi Solar (China) – Shipped 29.2 GW in 2022 with £14 billion in revenue
  • Canadian Solar (Canada) – The only non-Chinese company among the top manufacturers

Solen Energy provides access to many of the top panel brands globally, ensuring stock availability and warranty-backed quality for trade and wholesale customers.

Grid Integration Methods

Solar grid integration is the process of incorporating solar-generated electricity into existing power grids through two primary methods:

  • Distributed generation (small-scale installations on rooftops)
  • Utility-scale generation (large solar farms connected to transmission lines)

To streamline solar integration, grid operators are implementing several key strategies:

  • Advanced grid planning models that optimise hosting capacity and forecast energy production patterns
  • Energy storage solutions to store excess solar energy for use during non-sunny periods
  • Smart inverters that actively regulate voltage and frequency fluctuations
  • Automated connection processes leveraging AI to improve customer interfaces
  • Conditional requirements that adjust solar output based on network congestion
  • Standardised equipment and streamlined permitting to accelerate new connections

Here at Solen Energy we offer grid-ready hardware solutions, including smart inverters and storage systems, supported by our technical staff to assist with specifications, installation advice, and after-sales support.