Solar panels work their magic through a process called photovoltaics. Each solar panel is made up of many solar cells, typically composed of silicon.Solar panels are placed in direct sunlight. When sunlight hits the solar cells, it excites the electrons in the silicon, causing them to become energized.The energized electrons flow through the solar cells, creating an electric current. This electric current is in direct current (DC) form.The DC electricity generated by the solar panels is then passed through an inverter, which converts it into alternating current (AC) electricity. AC is the type of electricity used in most homes and businesses.