At a high level, solar panels are made up of solar cells, which absorb sunlight. They use this sunlight to create direct current (DC) electricity through a process called "the photovoltaic effect. " Because most appliances don't use DC electricity, devices called inverters then convert it to. Solar Technology Has Reached Peak Efficiency: Modern monocrystalline panels achieve 20-24% efficiency rates in 2025, with the average residential system size now at 11kW, producing 12,000-16,000 kWh annually – enough to power most homes completely. Multiple System Options Serve Different Needs:. The sun emits heat and light in the form of solar radiation, also known as electromagnetic radiation. Solar technologies capture this radiation and turn it into useful forms of energy. There are two main types of solar energy technologies: photovoltaics. Solar power, also known as solar electricity, is the conversion of energy from sunlight into electricity, either directly using photovoltaics (PV) or indirectly using concentrated solar power. The main components of a home solar energy system include solar panels, an inverter, a charge controller, and batteries.