What are solar panels and should you make the switch?

Solar panels are an increasingly popular way to generate energy, especially at home. From sprawling solar farms to small-scale panels for outdoor lights to professionally installed panels on your roof, solar power has many applications that may leave you wondering, "How do solar panels work?"

With federal programs like the Clean Electricity Production Credit and the Residential Clean Energy Credit, people are more curious than ever about them.

We spoke to Michael Kempe, senior scientist at the National Renewable Energy Laboratory, to find out how solar panels work.

How do solar panels work?

The short answer is that solar panels collect sunlight and turn it into energy that you can use to power a variety of things, like your garden lights or your backyard shed. The more technical answer is that solar power is created through photovoltaic cells that convert sunlight into electricity, Kempe says.

When the sun’s rays shine down on the solar panel, the cells begin the process of turning sunlight into energy.

During the photovoltaic process, there are two bands within the solar panels that contain electrons. When the sun hits the solar panel, it knocks loose electrons within the panel. The movement of electrons creates energy, which will be transformed into electricity.

Within the cells of the solar panel are silicon semiconductors (like you’d find in your smartphone or computer) that control the current of the energy created by the solar panel’s moving electrons. That energy creates a direct current, which is the type of electricity used in the batteries that power our electronic devices.

Direct current energy can be stored in batteries, which will eventually power your home when you need to use that energy. When the energy is pulled from those batteries storing the solar energy, it’s inverted into alternating current—the same type of current that comes from the outlets in your home.

Do solar panels work on cloudy days, too?

While wind turbines need wind to produce power, solar is an all-weather renewable energy source. Even on a cloudy day, solar panels will produce energy. However, under cloud cover, the panels will be significantly less productive and operate at approximately 25% efficiency. Even if you’re living in a climate that has more rainy days than sunny days, you can still take advantage of solar power.

A true hindrance to solar energy, according to Kempe, is the objects and shading around the exterior of your home. Tree shade is important for the energy efficiency of your home, as it can help keep your house cool, reducing energy costs. However, when it comes to solar panels, any shading reduces their efficiency.

While you can’t control cloudy skies, you can control the landscaping around your home that will shade your solar panels and decrease their efficiency.

Why should you switch to solar power?

Solar is a renewable resource and doesn’t contribute to the emission of greenhouse gases, which means it's not contributing to climate change. Plus, solar requires less water consumption than other electricity sources.

In short, it’s great for the environment. But how else can the switch to solar benefit you as a homeowner?

While the installation of solar panels will be an upfront investment, in the long run, it will save you money. If you’re still attached to the grid while using solar panels, you’ll use less of the traditional electricity supply, which translates to a lower power bill.

Thanks to net-metering (more on this below), if your solar panels produce more energy than you’re using, it will be sent into the grid, and you’ll receive a credit on your energy bill.

Additionally, the investment you make in setting up solar panels also enhances your home's value. According to the National Renewable Energy Laboratory, your home value increases by $20 for every $1 that solar panels save you in electric costs. That means if you’re saving $1,000 a year on your electric bill by installing solar panels, that’s a $20,000 increase in your property value.

What does switching to solar power entail?

You can either take the DIY-route or contact a professional to have them install the solar panels. Do your research to determine the best type of system for you, where to store the solar battery, and the optimal location for your solar panels.

It’s certainly possible to take on installing solar panels yourself. However, you should expect to take on a project management role, as it will require coordinating materials, cooperating with your local energy company, and hiring workers to help you install the panels. Although it will be more expensive, hiring a company to handle the project for you will save you time and stress.

There are some hidden costs to be wary of. If you are installing solar panels on a roof, you may need to consider new shingling or roof repair. Solar panels are heavy, so you want to make sure the foundation they’re on is sturdy. Landscaping costs also come into play, as you may need to cut back on trees that could impede your solar panels' ability to receive sunlight.

In addition to your solar panels, you’ll need solar storage. This is a place where all of the energy your solar panels produce is stored. That storage keeps things running at night, so even when your panels are getting no sun, you can still have the lights on and run the dishwasher overnight.

Going solar doesn’t mean going off the grid. Solar panels can work in conjunction with traditional grid power, providing access to both. This means that if your solar panels aren’t generating enough energy, your home can draw power from the grid to keep the lights on.

How do you use solar power at home?

The best place to start is by calculating the number of panels you will need. To do so, you need to know how many kilowatt-hours (kWh) you use a month (this information is available on your electrical bill).

Will Vandewiel, CEO of Unbound Solar, says that using your kWh is key in calculating because it allows you to offset your energy costs accordingly.

According to Unbound Solar, 500 kWh requires 13 panels. Sometimes, solar energy can completely power homes, but that is rarely the case. In most instances of residential solar energy, solar power can be used to power a home partially, but most homes will still remain connected to the grid.

Smaller home applications

Beyond the big panels you see constructed in fields or on top of residential rooftops, solar energy has small applications that are incredibly useful around the home. Solar-powered lights not only reduce energy usage, but they also provide the convenience of not needing to be close to an outlet.

Solar-powered lights are a great option for lighting up a pathway or stringing across the porch.

You can also harness solar energy for emergencies. Jackery makes solar panels that can generate a portable power station so your phone and other small appliances can stay powered up if you lose electricity.

With proper care, solar panels can last years, Kempe says. Solar energy is a relatively new technology, first discovered in 1954, but studies have shown that panels can reliably last around 30 to 40 years.

What is net metering? You need to know if you're using both solar and traditional power

Net metering is used for homes that utilize both solar and traditional electricity. This means that those with solar panels that produce more energy than they use in their home can send their surplus energy back into the grid and receive a credit from their local energy provider. Ensure you check the net metering stipulations with your local energy provider, as well as your state's net metering laws.

Kempe explains that electricity prices vary throughout the day, being at their highest when electric consumption is at its peak. However, in net metering, the credit received is always at a flat rate. Even if you’re giving power to the grid when electricity is at its most expensive, you’ll receive the same credit you would when the electricity cost is at its cheapest.