All solar power systems work on the same basic principles. Solar panels first convert solar energy or sunlight into DC power using what is known as the photovoltaic (PV) effect. The DC power can then be stored in a battery or converted by a solar inverter into AC power which can be used to run home appliances. Depending on the type of system, excess solar energy can either be fed into the electricity grid for credits, or stored in a variety of different battery storage systems.