What is Solar Energy?

As solar energy enters the mainstream, in both commercial and residential markets, let’s find out how this technology works and if it is worth the investment.

There’s a growing interest in alternative sources of power, particularly in solar, around the world. With more countries transitioning to solar as a primary energy source, we could expect technical improvements and mass production of solar equipment with more efficient and high-quality manufacturing.

As solar energy enters the mainstream, in both commercial and residential markets, we answer some of the big questions such as — “what is solar energy and is it worth it?” We’ll also cover how solar panels work, the amount of electricity it produces and if it's a viable power source for your home.

Solar energy is natural energy derived from the sun. To create solar energy, special equipment using solar photovoltaic (PV) technology absorbs sunlight and converts it into energy. One of the most common types of equipment of this kind is a solar panel, which is placed on roofs to collect sunlight for energy.

Energy is then transformed into electricity, which is used to power the lights, electrical appliances, HVAC systems, and more. Extra energy produced by solar equipment can be stored until it's needed with the help of battery storage, so excess energy won't go to waste.

Since the sun will always produce sunlight, solar is one of the most sustainable forms of energy. Compared to traditional energy sources like coal and gas, the technology that converts sunlight into solar energy does not produce harmful emissions, so it's also a cleaner form of energy.

How do Solar Panels work?

Solar panels work by collecting solar energy from the sun. How well they work depends on how much light energy they get via the solar cells.

Solar cells are typically combined to make solar panels, otherwise known as PV panels, solar modules, or PV modules. One or more of these panels grouped together constitutes a PV array or solar array.

Solar panels are used to convert solar photovoltaic energy into DC (direct current) electricity. A power inverter is then used to convert that DC electricity to AC (alternating current) electricity, which is what we use in our homes.

Energy vs. Power – What’s the difference?

Energy and power are closely related. Energy is the ability to cause change while power is the rate at which energy is applied. Solar PV technology is the process by which energy from sunlight is collected and then converted into electric power in order to be useful.

Electric power is measured by how quickly energy is used or transmitted. To illustrate – a single unit of energy is called a “Joule (J)”. Dissipating one joule of energy in one second is called a single “Watt (W)”. In mathematical terms:

1 W = 1 J/sec

In electrical terms, commonly used power units are the kilowatt (1 kW = 1,000 W) for residential and commercial solar systems and megawatt (1 MW = 1,000 kW) for large, utility-scale solar installations.

How much electrical power do solar panels generate?

From a power output standpoint, a typical residential solar installation may incorporate 30 solar panels, each capable of generating 390 watts of power, and be rated at 30 x 390 = 11,700 W or 11.7 kW.

If the sun shone for five hours with enough intensity to generate the full power rating of the solar installation, the 30-panel solar installation would have developed 11.7 kW x 5 hr = 58.5 kilowatt-hours (kWh) of energy.

Solar panels capture whatever sunlight is available and convert it to DC power. An inverter converts the DC power to AC power (which is what we use to power electronic devices). For people who want to completely power an entire home with the sun's rays, there are systems available to convert and store extra power in the form of battery energy.

What does it mean to “go solar” for the home?

It typically means that a homeowner has switched to a system where their home is mostly or almost entirely disconnected from the main grid and independently powered by sunlight. They have likely added solar panels to their roofs or open land to convert sunlight to electricity.

Going solar can also refer to replacing typical electric or gas heating with solar heating. Solar heating again uses the sun's energy but to heat air rather than power a home, resulting in solar heat.

Does solar generate enough energy to power your home?

The quick answer is – it depends on your usage and generating capacity. Consider calculating your KW usage for the following energy demands of a typical household –

Heating and air conditioning – the biggest drains of power in a house
Lighting and vent fans
Major appliances, i.e. refrigerator, stove, washer and dryer
Electronics, i.e. stereos, televisions and computers

If your house is huge and your heating or air conditioning is on all day, you'll need a more intense solar setup. Energy-saving decisions such as using insulated window shades to trap heat (or cold) in the home, could help in reducing power consumption. Ultimately, the smart consumer calculates electricity use, then assembles a solar panel setup that can meet that demand.

Finally, how much does Solar cost and is it worth it?

According to the latest report from marketwatch, residential solar panel systems have dropped in price by an annual average of more than 60% over the past decade — from upwards of $50,000 for a 6-kilowatt-hour (KWh) system back in 2011 to just between $16,000 and $21,000 in 2022.

Before you make the transition to solar, remember that electricity rates vary by location. The national average is about 14 cents per kilowatt-hour, according to year-to-date 2022 data from the U.S. Energy Information Administration.

Solar panels generate their own power and can therefore greatly offset your monthly electricity bill, if not eliminate it. The higher your bill, the more likely you'll benefit from switching. Be aware that electricity rates fluctuate, and so does your consumption which could affect the amount of savings.

Thinking about switching to solar?

Find the perfect solar panel size for your house to meet your current energy usage and start saving on your monthly utility bills using omni’s solar panel calculator. And if you decide that going solar is right for your home, contact us for free advice. We help with the design and set up of solar panel equipment, installation, including financing and warranties.

What is Solar Energy? And Other Big Questions Answered