Solar panels are placed in a sunny location, usually on the roof of a home or commercial building. When sunlight hits the PV solar panels they produce electricity in the form of direct current (DC). Because most homes and buildings are powered by alternating current (AC), the electricity generated from solar your solar panels must first run through an inverter where it’s converted from DC to AC, then it’s connected to your existing electric service.
At times when you’re making more electricity than you’re using, the power flows out to the utility company grid and your meter runs backwards. When you need more power than you’re making, you automatically draw electricity from the utility company grid. The eliminates the need for batteries and allows power to flow seamlessly as you earn credit for every kWh your system generates.