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Solar Homes NSW

How Does a Solar System Work?

If you're in the market for solar you’re probably getting a great deal of products, statistics, benefits and solar terms thrown at you, this can be overwhelming, leaving you confused on what set-up would suit the needs of your home and often leading you to blindly trust the word of solar retailers.

This industry is rife with ‘solar cowboys’, dodgy solar providers and installers out to make a quick buck with little regard for the health and longevity of your system, often without offering adequate aftermarket support.

With a mix of quality solar retailers and shoddy solar cowboys it is vital that you understand the basics of a solar system and how these components work together so you can spot inconsistencies and false promises while having a greater understanding of what you're getting and what you need.

Summary of the Main Points:

  • Why Bother Understanding How Your Solar Works? The solar industry can be confusing with a mix of reputable and unreliable providers competing for your attention. Understanding how your solar works helps you to stay informed in your decisions and avoid any misleading claims from retailers.

  • Key Components: A solar system consists of several critical parts, including solar panels or PV modules (which convert sunlight into electricity), inverters (that change DC electricity to AC for home use), cabling (for electrical connections), and optional solar storage (like batteries for excess energy), as well as other non-structural components like your monitoring platform.

  • Solar Panel Functionality: Solar panels contain solar cells made of silicon that generate electricity through the photovoltaic effect. They have protective layers, including glass and an aluminum frame, to ensure durability.

  • Inverters and Optimisation: Inverters are crucial for converting energy and may vary in type (microinverters, string inverters, or optimisers) to enhance performance, especially in shaded areas.

  • Energy Management and Monitoring: Systems can be enhanced with energy management tools and monitoring systems to optimise electricity usage and track performance, allowing homeowners to adjust their energy consumption patterns for maximum efficiency.

What are the Different Components of a Solar System?

A great place to start is by understanding all the elements that go into transforming sunlight into usable energy. By first understanding the makeup of a solar system it will be much easier to understand how all of these components work together to power your home. 

Solar Panels:

Your solar panels, or PV modules are the stars of the show, responsible for converting sunlight into an electrical current. Panels are made up of solar cells which are the actual component responsible for the generation of electricity. Solar cells are usually made up of silicon. The conversion of sunlight into an electrical current is called photovoltaic energy. 

Although solar cells are responsible for the conversion there are other components that go into the overall solar panels design. Each solar panel usually contains around 60-72 individual cells, these solar cells are connected and secured within a frame and are surrounded by a number of layers.

  • Glass Cover: protects the PV module from hail, debris, other harsh weather conditions, birds and other pests and a range of potential damage risks.

  • Protective Layers: these are made of plastic and offer further protection to the solar cells. 

  • Back Film: the back film provides the PV module with insulation and stabilisation.

  • Aluminium Frame: this holds all of these different layers together securely.

panels
cells

Solar Cells:

Next we’ll dive into the makeup of the solar cells themselves, this part can be a bit more complicated as we’ll discuss how the electricity is actually generated but can be helpful information when installing your own solar. Solar cells are made up of two layers of silicon:

  • P-doped: this layer is made of elements that have fewer electrons creating a shortage. 

  • N-doped: unlike the first layer this one is made up of elements that carry a greater number of electrons creating an excess. 

Between these two layers a boundary (pn junction) forms, preventing the electrons from being transferred across. As sunlight reaches this electrical field, electrons begin to come loose in a sense and are then set into motion creating an electrical current.

Solar Inverter

Inverters are the heart of your solar system, responsible for converting the DC electricity produced by the panel into AC, which can be used to power your home appliances. The inverter grabs energy from the PV modules (DC) which is then run through a transformer converting it into AC. The electrical current is then run through two or more transistors, these essentially work by turning on and off at a great speed, feeding varying sides of the inverter. A key component of a solar inverter is the MPPT Tracker or Maximum Power Point Tracker which ensures the modules are operating at maximum efficiency and providing the maximum yield. Your solar inverter may have one or several depending on the system itself.

Different Types of Inverters:

Microinverters

microinverter

These inverters are almost like smaller mini inverters installed directly on each module. Microinverters allow each panel to operate independently from the others, optimising overall performance, this is often referred to as panel level performance. This is an ideal option for those homes experiencing shading issues or different panel orientations.

String Inverters

string

This is the more traditional type of inverter and is often more cost effective than its counterparts. These inverters are generally installed centrally near the solar array.

Power Optimisers

optimiser

Optimisers or DC optimisers are installed between the PV modules and the string inverter and are another way of optimising each panel's performance individually. Optimisers are also ideal for homes experiencing shading issues or different orientations within the panel array.

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cabling

Cabling:

Cabling is a vital component of the solar system as it provides an electrical connection between all the different elements of the PV system. These aren’t just any cables, they are designed specifically for use in solar systems, equipped for outdoor application and are resistant to both UV and extreme weather conditions. There are two main kinds of solar cabling: 

  • AC Cabling: these cables are robust and designed to handle the high voltage electrical currents needed to power appliances, lights and more around your home. 

  • DC Cabling: these cables connect the system components such as the PV modules and inverter. They are typically low resistance in order to minimise potential energy loss throughout the process. 

Solar Storage:

Installing solar storage such as a battery set-up can be an amazing way to elevate your system and maximise your savings, a solar battery allows you to store any excess solar power generated for use at a later time, whether that be at night, an overcast day or during a power outage. First let’s unpack a few common battery storage terms: 

  • Battery: the component responsible for storing this excess energy, the most common kind of battery used is lithium ion

  • Battery Management System (BMS): your battery management system is responsible for monitoring and controlling the charging and discharging of the battery, this prevents overcharging or deep-discharging which could be harmful to battery health and reduce its lifespan. 

  • Battery Inverter: Solar batteries can only store energy in DC, this means any excess AC current must be converted back into DC before storage and once again converted to AC for later use in the home. 

storage

Electricity Meter

All homes have an electricity meter installed, this is usually done by your energy retailer as it measures your electricity consumption (power drawn from the grid), solar homes will need a bi-directional solar meter in order to measure both the power they draw from the grid as well as the power they export back into the grid, luckily this usually does not require any physical changes and can be done remotely by your provider. 

Smart Energy Meter: A smart energy meter for solar power can allow you to see your precise energy consumption in real time. 

Energy Management

An energy management system for solar power controls and optimises both the generating and consumption of solar electricity. This can be an excellent way of maximising your solar benefits more specifically the efficiency of your system and your solar savings. This allows you to alter you energy habits to best suit peak generation. 

Monitoring System:

Your monitoring system provides real-time data on yield, production and overall performance of the solar panels, giving you a better idea of the times of peak solar production as well as giving you any early warning signs of performance degradation within the system. 

monitoring

Now Let’s Put All of That Together

Now that we’ve been over all of the components of a solar PV system, let’s jump into how they all work together and the process of energy generation step by step: 

  1. Sunlight Reaches Panels: The PV or solar cells absorb the sunlight, once activated an electric current is formed, starting the process.

  2. Electrical Current is Converted: the solar inverter will then convert the DC electricity from the panels into AC electricity that can be used to power your home. 

  3. Electricity can Now be Used in the Home: the electrical current is then transferred from the inverter, through the switchboard and into your home. 

  4. Net Meter Measures Usage: your bi-directional solar meter will then measure the flow of electricity in both directions both to and from the grid so that all charges and credits are calculated correctly.  

  5. Battery Storage: the excess AC energy that hasn't been used in the home will then be converted back into DC and stored in your solar battery for use later at times of lower production. When needed, for example after dark, the energy will then be converted back into AC and transferred in order to power your home. 

system diagram

Your energy management  and monitoring system will allow you to keep track of all of these different components and processes, identifying any potential issues and altering your habits based on system performance.

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inverter
electricity
battery
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1KOMMA5° Blog

Need more information?

Head over to the 1KOMMA5° blog for more helpful tips and other important guides on everything solar, from inverters, panels and batteries to how to make the most of your investment for years to come.

FAQ

Frequently Asked Questions about Installing Solar Power

How Does Solar Work?

The way solar power works in Sydney these days is all of the solar energy is directed into your home to be used immediately.

By using solar power, you’re not buying electricity from the grid, and that directly reduces your power bill. And importantly with that, you’re not actually going to see the saving on your bill as a line item, it’s just gonna be a smaller bill.

Say for example you have an $800 quarterly bill, and then you go and install a good-sized solar system, it may reduce your bill by $300 a quarter. In that case, your bill will just be $500.

But then there is also a feed-in tariff. So if you don’t use the solar power in the home as it’s being generated (and you don’t have battery storage), then the solar power will go straight out to the grid and you’ll get paid a feed-in tariff by your energy retailer.

This is not a rebate, but a part of the agreement you have with your energy retailer. The FITs bounce around a bit, they’ve been up over 20 cents per kWh before, but these days they’re somewhere between 5 and 10 cents. I think a lot of retailers at the moment are around about 7 cents, a kWh.

And so obviously with the price of power at the moment being a lot more than 7 cents a kWh (and it’s on the way up), in fact in the peak billing period if you’ve got time-of-use billing, it is often well over 50 cents a kWh. So it’s much, much better to save 50 cents in that example, compared to getting a 7-cent credit on your bill.

And so what we say is we want the feed-in tariff on your bill to be as small as possible because that means you’re using most of the solar power in the home as it’s being generated.

In this example, if you’re $800 bill is now $450, we’d only want to see a $20 or $30 credit on your bill from your feed tariff because that means that you’re really making the most of the power that you’re generating.

How does the feed-in tariff work?

The Feed In Tariff is only something you need to worry about if you don’t have battery storage.

The price your chosen energy retailer pays for any excess electricity generated from your solar panels is recorded as a credit on your power bill.

In NSW, solar power is fed into your home as it is generated and your household will use it first before you draw power from the grid.

This means that for every kWh of solar power used in the home you are directly saving money you’d spend on your power bill. This reduction in your power bill is the main financial benefit of solar power.

Everything else will be bought up at an agreed rate by your electricity retailer.

At the moment, most feed-in tariffs are between 5 and 10 cents per kWh, with many being about 7 cents. They bounce up and down a lot, for example in previous years they have been up over 20 cents per kWh. Typically, they are always at least 5 cents per kWh.

Do I Need a Battery?

A solar battery allows our system designers to size up a solar system to match your 24-hour energy usage. This means you can generate much more solar power compared to just trying to cover your daytime usage.

Without battery storage, most solar homes will only be about 30-40% self-sufficient. By adding battery storage, we can completely eliminate your power bills.

Unlike solar power, battery storage offers a lot more than savings on your power bill. So when you consider if battery storage is worth it for your household, you also need to factor in:

  • Blackout protection

  • Virtual power plants (VPPs) – sell excess solar power at a rate much higher than standard feed-in tariffs

  • The ability to run your home on solar power 24 hours a day

  • Protection from future price rises for electricity

  • The ability to charge an electric car, which also helps you save money on petrol

  • Divesting your home from coal and gas

There are also a number of intangible benefits that our customers enjoy, such as the freedom that comes from being independent of the power grid.

We get a lot of messages from customers after long blackouts who are genuinely grateful and relieved that they could get on with life while their neighbours struggled to make do without power.

In the same way that a nice new kitchen may not have a specific ROI calculation, living in a home where you can generate, store and manage your own electricity can be worth a lot more than the strict return on investment.

Of course, not having to pay a power bill isn’t such a bad thing either!

In terms of cost, the amount you pay for a battery will depend on how much excess solar power you have, how much energy you use, and what you’re trying to achieve. Lots of factors!

But as a starting point, the price of a Tesla Powerwall is $16000 fully installed.

All the panels look the same and everyone is saying their panels are the best! How can I tell the brands apart, and what should I be looking for?

The Solar Panels are the heart of any solar system. Whilst there are literally thousands of brands of solar panels on the market, Solaray only selects preferred suppliers that meet our strict standards. The supplier must:

  • Manufacture their own products in their own factories

  • Have a local office in Australia to provide warranty and other support

  • Conduct Research and Development and show a level of technology leadership

  • Have been manufacturing and supplying solar panels for at least 10 years

  • Have the financial and market strength to be able to honour the long term warranty

  • Have commercial scale and solar farm reference sites

As with most industries that have grown rapidly in the past (such as televisions, computers, cars etc), we are starting to see a growing consolidation in the number of manufacturers and it is likely that within the next few years, we will see the industry dominated by the top handful of suppliers. For this reason alone, it is worth selecting panels from any one of the world’s leading brands rather than the smaller or newer ones.