Solar panels create energy by absorbing photons from sunlight. The photons react with the photoelectric material in the solar modules, knocking electrons. These electrons are captured in the form of a direct electrical current, creating power for your home.
After being converted to alternating current, power travels from the inverter to your electrical service panel (your breaker box). The power from the electrical panel is then distributed to any electrical loads in your home.
When excess power is produced by the solar panels system, the power will flow into the grid through your electric meter. This will cause your meter to run backward gaining you a credit with the utility company.
The net metering legislation states that the utility company must credit you at retail rates (the same rate they would have charged you). Therefore, time of use customers will be credited peak rates for power fed into the grid during peak hours.
There are several factors that determine how suitable a home is for solar panels: