How Solar Panel Power Systems Work

Solar panel arrays are best mounted at a fixed angle facing south, or they can be mounted on a tracking device that follows the sun, allowing them to capture the most sunlight over the course of a day. Because of their modularity, solar panel systems can be designed to meet most power needs, no matter how large or how small. You can connect solar panels to an electric utility system (grid-connected), or they can stand alone (off-grid) with an optional battery storage system.

A grid-connected solar panel system receives back-up power from the utility company when the solar power system is not producing enough energy. When the solar panels produce excess power, the utility is often required to purchase the power through a metering and rate arrangement. Under this arrangement, also known as net-metering, the utility essentially pays you the retail price in the form of energy credits for the electricity you provide into the grid. Your local installer should know about the requirements of your utility company.

To produce power, solar cells (about 40) are interconnected to form solar panels. About 10 to 20 solar panels could provide enough power for a household.

The key components of a solar electric system include: 

1.Solar Panels: Solar panels convert sunlight to electricity. They are typically mounted to the roof of a residence or ground mounted close to the building. 

2. Inverter: The inverter (or power converter) converts the direct current (DC) power from the panels to alternating current (AC) used in your home. Some newer panels include micro-inverters that are integrated into the panels, so no additional equipment is needed.

3.Electrical Panel: Power travels from the inverter to the breaker box or electrical service panel. The power from the electrical panel is then distributed throughout the home or back to the utility grid for use.

4.Utility Meter: When excess power is produced by the solar system (for instance during a work day at a residence or over the weekend at a business), the electrical power will flow into the grid through the electric meter. This will cause the meter to run backwards, generating a credit with the utility company that can be used to offset future usage. The arrangement is known as net metering and is usually mandated by the State Public Utility Commission.

Solar Panel System Costs
If you are paying more than $100 each month in utility bills, you can likely save money with solar power. As a rule of thumb, a one kilo-watt (1 kW or 1,000 watt), grid-connected solar power system could cost between $7,000 to $10,000 when installed by a solar professional. Geography, energy consumption, size of the home, roof pitch, roof direction, and even the presence of trees or other obstacles to sunlight could all effect the size of the solar power system needed. Depending on geographic location, energy consumption and other installation factors, the typical home could require a 2 to 4 kWh system. Therefore, a 2 kWh system could cost between $14,000 to $20,000, while a 4 kWh system could cost between $28,000 to $40,000. These costs do not include any solar energy credits, cash rebates, tax credits or deductions that may be available. These rebates and incentives could reduce your cost by up to 50%, depending on where you live. Remember, you will likely recoup many times over this investment by reducing your monthly utility bill by 50% to 85%. In addition, your property value will appreciate by most of the amount of the solar improvement cost. Finally, you will feel especially good about making a positive impact against climate change and global warming.