How does solar work?

A solar electrical (photovoltaic/PV) system

1. Solar Modules
Solar panels are installed on the roof, ground, parking structure or any other adjacent structure. The panels are made up of photovoltaic cells that convert sunlight into direct current (DC) power.

2. Inverter
The DC power created by the photovoltaic modules flows to an inverter (power converter) where it is converted into alternating current (AC) power – which is standard residential and commercial electricity.

3. Electrical Meter and Distribution Panel
The AC power flows from the inverter to the main electrical service panel, and then the power is distributed through your business. The utility meter then measures the electrical supply: If your solar system produces more power than your business needs, the meter spins backwards and the excess power is exported to the grid. This exported power then generates a credit with the utility company.

4. Utility Grid
The utility grid supplies you with electricity when you need more power than your system produces. You will always be using power from the utility grid at night when there is no sunlight. Any surplus power generated by your solar system flows back into the grid.

The interaction between your solar electric system and the utility grid

Once you have installed a solar power system, you and your utility company will enter into an agreement called ‘Net Metering.’ This states that the utility will credit your account for any excess electricity that your solar power system generates.

Some utilities bill their customers on a tiered rate plan. This begins with a baseline allocation of power – the more electricity you consume, the higher rate you pay. By reducing your overall usage of grid power, you lower the most expensive portion of your bill, allowing you to experience immediate savings. In many cases you can reduce your net usage to zero, and completely eliminate your electricity bill.