Solar panels, also known as photovoltaic (PV) panels, convert sunlight into electricity using semiconductor materials—typically silicon. When sunlight hits the panel, it excites electrons in the silicon cells, creating an electric current. This direct current (DC) is then converted into alternating current (AC) via an inverter, making it usable for homes and businesses. The efficiency of a solar panel depends on factors like panel type, orientation, and sunlight exposure.