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Glossary

What is a Solar Panel?

By Home Energy Quotes · Updated March 2026

A device that converts sunlight into electricity using photovoltaic cells

A solar panel (photovoltaic panel) is made of silicon cells that generate direct current (DC) electricity when photons from sunlight knock electrons loose. An inverter converts this DC electricity into alternating current (AC) for use in your home. Excess electricity can be exported to the grid and paid for through the Smart Export Guarantee (SEG).

Where it wins

  • Reduces electricity bills by up to 70%
  • Earn money through the Smart Export Guarantee (SEG)
  • Low maintenance with 25+ year lifespan
  • 0% VAT on residential installations

Where it struggles

  • Output depends on sunlight and roof orientation
  • Upfront cost of £5000-£10000
  • Does not generate electricity at night
  • May require roof reinforcement on older properties

How it works

01

Sunlight hits silicon photovoltaic cells in the panel

02

Photons knock electrons loose creating direct current (DC) electricity

03

An inverter converts DC to AC electricity your home can use

04

Excess power is exported to the grid, earning Smart Export Guarantee (SEG) payments

Solar Panel: common questions

What is a Solar Panel?
A device that converts sunlight into electricity using photovoltaic cells
How does a Solar Panel work?
A solar panel (photovoltaic panel) is made of silicon cells that generate direct current (DC) electricity when photons from sunlight knock electrons loose. An inverter converts this DC electricity into alternating current (AC) for use in your home. Excess electricity can be exported to the grid and paid for through the Smart Export Guarantee (SEG).

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