Technology facilitates the transformation of solar radiation into heat and electricity through two main methods: solar thermal and solar photovoltaics. Solar energy allows for decentralized power generation. A grid-connected PV system includes solar panels, inverters, a power conditioning unit, and grid connection equipment. These systems vary in size, from small residential and commercial rooftop installations to large utility-scale solar power plants.
When sunlight strikes the solar cells on a rooftop solar panel, it transforms photons into electrons, producing direct current (DC) electricity. The inverter manages and converts this energy to meet utility power requirements (single or three-phase output), synchronizing it with the utility grid and feeding any excess power back. Without batteries, this system is generally more affordable and simpler to install than off-grid systems. The absence of batteries also eliminates storage losses, ensuring effective use of generated power. This setup allows users to draw power from the grid only when the solar system cannot meet their energy needs. A grid-connected photovoltaic system can lower electricity bills, as surplus energy can be sold back to the grid.