Simply put, you install panel onto your home that both collect – and feed – solar energy back to the grid. How does it do that? Solar panels are made up of photovoltaic (PV) cells, which convert sunlight into direct electricity. An inverter then converts the DC electricity generated by the solar panels into the alternating current (AC) electricity. It can then be sent back to the grid to be used to power homes in your area or, depending on your system, collected and used specifically for your home.