Wondering about how do solar panels work, and what components are needed for a residential solar system?

Many homeowners are looking for ways to cut their electricity bills and make smarter financial choices, but the technical side of solar energy can feel overwhelming. The good news? It’s simpler than you think!

In this guide, we’ll break down how solar panels work, the essential components of a home solar system, and how it all comes together to help you save money while reducing your carbon footprint.

TL;DR – The Quick Version

☀️ Solar panels absorb sunlight and convert it into electricity.

☀️ An inverter turns that electricity into a usable form for your home.

☀️ If connected to the grid, net metering lets you send extra power back for credits on your bill.

☀️ Battery storage can store excess energy for night-time use or power outages.

☀️ A solar system can cut electricity costs significantly and even eliminate your bill over time.

rooftop solar
Rooftop solar

How Do Solar Panels Work?

Imagine your roof acting like a mini power station. When the sun shines, solar panels capture sunlight and convert it into electricity. But the power they generate is direct current (DC), while your home runs on alternating current (AC). That’s where an inverter comes in, it transforms DC into AC, making it safe and usable for household appliances.

If your system produces more electricity than you need, the extra power can be:

1. Stored in a battery for use when the sun isn’t shining.

2. Sent back to the grid where your utility company gives you energy credits.

This process is called net metering and can help you save even more on your electricity bills.

What Are the Key Components of a Residential Solar System?

A complete solar system isn’t just about the panels. It’s made up of a few key parts that work together:

1. Solar Panels

These panels are made up of photovoltaic (PV) cells, which absorb sunlight and turn it into electricity.

2. Inverter

Since your home runs on AC power, an inverter converts the DC power generated by the panels into AC electricity.

Types of inverters:

➡️ String Inverters: one unit for all panels. This is cost-effective but can be less efficient.

➡️ Microinverters: individual inverters for each panel, leading to higher efficiency and better for roofs with intermittent shading.

➡️ Hybrid Inverters: works with battery storage, allowing energy to be stored for later use.

3. Mounting System

Solar panels are installed on your roof using a mounting system that keeps them secure and positioned at the best angle for sunlight absorption. Want to know more about whether your roof is suitable for solar? Find out here in this guide about roofing requirements for solar panel installation.

4. Battery Storage (Optional)

A solar battery stores extra energy for nighttime use or during power outages. While optional, it’s a great way to maximize your system’s benefits.

5. Net Metering (Optional)

If your solar system is connected to the electric grid, any excess power your panels generate is sent back to the grid in exchange for credits on your electricity bill. This helps offset your energy costs when you need to draw power from the grid (like at night).

Solar engineers evaluating panels

Why Should You Consider Solar?

Here are the biggest reasons homeowners are making the switch:

💰 Save Money, reduce or even eliminate your electricity bill

🌱 Solar energy reduces carbon emissions

🔋 Energy Independence

📈 Increases Property Value

Solar engineers on roof

FAQs on a solar system

1. Do solar panels work on cloudy days?

Yes! While they generate less electricity, they still work in indirect sunlight.

2. How long do solar panels last?

Most panels last 25-30 years and require minimal maintenance.

3. Will solar eliminate my electricity bill?

It depends on your system size and energy use. Many homeowners see 50-80% savings, and some are able to eliminate their bill entirely.

4. What happens if I generate more energy than I use?

With net metering, extra energy is sent to the grid, and you get credits to lower your future bills.

Seeing the benefits of solar energy firsthand is always inspiring. One of our customers shared their journey of switching to solar in a Channel News Asia feature, highlighting how their rooftop solar system is helping them save on electricity bills while reducing their carbon footprint.

Read his full story here:🔗Landed homes powered by sunshine: More owners capitalise on solar panels as prices dip

Ready to Start Saving?

Switching to solar is one of the smartest financial moves you can make. If you’re ready to cut your electricity bill and take control of your energy costs, let’s chat!

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