How does solar electricity work?

A solar electric system - using photovoltaic panels (PV) - generates electricity that can be used throughout your home to power the electric appliances and other devices, which reduces the amount of electricity you need to purchase from your power company. On sunny days you may not have a use for all the electricity you are generating and any excess flows out to the electric grid where it is available to other electric customers. When your system generates more electricity than you use, you receive a credit from your utility. This credit is measured in kilowatt hours (kWh).