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Image above shows a residential Grid-Connected Photovoltaic System.
1. Solar panels
2. Inverter
3. Breaker box
4. Home power and appliances
5. Meter
6. Utility power grid.

1) Solar Electric or PV modules convert sunlight to electricity. The PV modules generate DC electricity - or direct current - sending it to the inverter.
(2) The inverter transforms the DC power into AC electricity for ordinary household needs.
(3) Existing electrical panel distributes solar electricity and utility power to
(4) loads (appliances). For systems with a battery backup (optional), the inverter also regulates the charge of batteries. The electricity stored in the batteries can be used at night or during blackouts.

A valuable feature of photovoltaic systems is the ability to connect with the existing power grid which allows owners to sell excessive electricity back to the utility with a plan known as Net Metering. At times when you are not using all of the electricity produced by your system, your meter will spin backwards selling the electricity back to the (6) utility power grid at retail rate.

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