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How solar power works

You already know that investing in a solar and battery system, or adding a battery, will add value to your property – but do you know how it all works?

If you want to learn more about how solar energy functions, and how each component of a greener energy solution fits together, then watch this video for a brief explanation.

Top 4 considerations for investing in solar power


Consider your available budget and whether you'll buy the system with cash, finance the purchase with additional interest, or find an option that allows you to buy now with no up-front deposit or interest fees.


Consider the savings you're expecting to see. Is your current electricity bill high due to your energy usage? Can you calculate how long the payback period would be?

House structure

Consider your roof and whether there is space for panels, shading, or whether it is strong enough. Is there room to install a battery (some batteries need to be housed indoors)?

System choice

Consider what solar system components you want to install by our Clean Energy Council approved installers. Which are the best and safest panels on the market? Why are some cheaper than others? Which are the best performing batteries, and is one with a 10-year performance warranty, worth paying the extra cost?

The solar basics

Solar panels

After sunlight strikes solar panels and positively charges the silicon atoms inside the panel cells, electricity is produced. The direct current (DC) electricity is used to transport the positively charged atoms into the inverter.

Solar inverters

The primary function of the inverter is to transform the DC electricity obtained from the solar panels, into alternating current (AC) electricity. For the electricity to be used in your home in the same way that power from the grid is used, it must go through this conversion. The inverter also sends any extra energy back into the grid, if you don’t have a solar battery storage system.

Solar batteries

One or more batteries and inverters are typically found in solar power storage systems. The purpose of a battery storage system is to store excess energy for use on days when demand is higher. A solar battery will continue to be full until the power is totally depleted, just like a car battery. As more power is generated, the excess goes into the battery until it is full, then it’s drawn on, refilled and so on.

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Victorian residents

Solar feed-in tariff

Once you have a residential home solar system installed, you need to understand what a solar feed-in tariff is and how it works. We’ve created a quick guide that breaks down what a solar feed-in tariff is and how they work. In addition, we also briefly discuss how you can pay off your solar panels sooner.

More about solar feed-in tariff

Solar news and resources