About solar power
How Solar Power Works
AGL understands there are a lot of questions around how a solar PV system works. Let's start with the basics. Just how is the sun’s energy converted to the electricity used at your property?
It's as simple as this:
- When the sun is shining, the photo voltaic panels of a solar PV system capture sunlight and convert it into direct current electricity.
- The Solar PV system, using an inverter, then converts this electricity into 240V alternating current electricity which you can use around your home.
- Under a net feed-in system this electricity then gets distributed for use around your property, and any excess electricity is fed into the electricity grid through your electricity meter.
- Under a gross feed-in system all of the electricity generated is fed into the electricity grid through your electricity meter.
You can see how solar PV Systems work below.

The parts that make it all happen.
Sound simple enough so far? It's a mixture of technology and Mother Nature that makes using the sun’s energy possible. The main element involved in the process is sunlight - the source of the energy. This is harnessed by your solar power system, which is comprised of two main parts:
- Solar panels - (also known as 'photovoltaic' or PV panels) - Used to capture the sunlight and convert it into electricity.
- An inverter - To convert the electricity generated by the solar panels into electricity that can be used around your home, or fed into the electricity grid.
We're making it sound simple, but there is a technical side to it all.
The positives for you.
A solar PV system could help you save on your energy bill in the following two ways:
- Less electricity from the grid means less on your bill - With solar PV system you could draw less electricity from the grid, because the electricity you generate can be used to help power your home.
- Offset your bill further – At times your solar PV system may generate more electricity than your home requires. Depending on the state you live in, and the solar incentive schemes available, you could receive a feed in tariff for every kWh of this excess electricity you feed into the grid.