How Solar Energy Works?

A simple diagram to show how a solar PV system works.

How does solar energy help us reduce our electric bills?

To Understand how it works, lets first talk about what solar energy is. Simply put, solar energy is the energy that comes from the sun.

It all starts when the light of the sun touches the solar panels. The technology inside the solar panels, converts the solar energy into electrical energy. This electrical energy is called Direct current. The Direct current then passes through a Solar Inverter and gets converted into Alternating Current which is then distributed to your system and used by your load. This lessens the power that your system consumes from your power provider (ex.Meralco) since you are now generating your own electricity and it is being used directly by your system.

Now there are times that your solar PV system will be producing more electricity than what you are consuming. This excess electricity is then fed back to the grid. Under RA. 9513 : Renewable energy act of 2008, power providers are required to buy excess electricity produced by establishments thru their solar PV systems. This process is called Net Metering. A credit system where your excess electricity this month that you fed back to the grid will be deducted to your bill next month.

To understand more about how solar energy works, please watch this video by Richard Komp.