How Solar Energy Powers Homes and Businesses

In recent years, solar energy has become a major player in the renewable energy sector. More homes and businesses are recognising the benefits of solar power as a sustainable electricity source. The decline in solar panel prices, roughly a 90% drop globally in the last decade, combined with technological advances, has made solar panels far more accessible.

Understanding how solar energy works and its advantages can help individuals make informed decisions about adopting this technology.

What is Solar Energy?

Solar energy is energy derived from the Sun’s rays, the most abundant renewable energy source on Earth. Solar power is harnessed using solar panels, which convert sunlight into usable electricity. These panels (typically made of silicon photovoltaic cells) absorb sunlight and trigger a reaction that generates an electric current. Essentially, a solar photovoltaic system allows sunlight to be converted directly into electrical power that can run appliances, lighting, and even charge electric vehicles.

There are two main types of solar panels used for this purpose:

Photovoltaic (PV) Panels: These convert sunlight directly into electricity using the photovoltaic effect. PV panels are the most common type found on rooftops for home and business use.

Solar Thermal Panels: These panels (often used in solar water heaters) capture heat from the sun and convert it into thermal energy for heating water or indoor spaces.

This simple yet effective mechanism allows solar energy to be a clean, renewable resource with numerous applications. Once installed, solar panels quietly generate electricity without fuel or emissions, tapping into an energy source that is virtually limitless.

Solar panels on a commercial building’s metal roof harness sunlight to produce electricity at scale.

Businesses often install extensive rooftop PV arrays to lower their energy costs and carbon footprint.

How Solar Energy Powers Homes and Businesses

Solar energy can power homes and businesses through both grid tied and off grid systems. The configuration determines how the solar installation interacts with the local electricity network and whether backup sources are needed.

Grid Tied Systems

In a grid tied solar system, the solar panels are connected to the local electricity grid. This setup is very common in the UK and allows homeowners or businesses to draw electricity from the grid when needed (for example, at night) and export surplus solar energy back to the grid during the day.

Here’s how it works:

Solar Power Generation: Solar panels generate electricity during daylight hours. This power is used to run your home or business – lighting, appliances, machinery, etc.

Using & Exporting Power: If your solar panels produce more electricity than you consume, the excess automatically flows out to the national grid.

Smart Export Guarantee: Thanks to Ofgem’s Smart Export Guarantee (SEG) scheme, you get paid for every unit of renewable electricity you send into the grid. Your electricity supplier will credit you for the exported energy (at an agreed rate per kWh), effectively reducing your energy bills.

Grid Import: When solar production is low (e.g. at night or on very cloudy days), you can seamlessly draw power from the grid so you always have electricity.

This system is advantageous because it allows you to reduce energy costs without needing to invest in batteries. The grid acts as a virtual battery, you use the grid when solar isn’t sufficient and sell back any surplus when it is.

Under net metering or SEG arrangements, solar households effectively “spin the meter backwards” by earning credits for excess generation. It’s an efficient setup for those who want to cut bills and use renewable energy while still having the grid for backup supply.

Solar panels on a British family home provide renewable electricity and can significantly cut monthly energy bills. In grid tied setups, any surplus power the home doesn’t use is sent to the national grid in exchange for bill credits or payments.

Off Grid Systems

Off grid solar systems operate independently of any utility grid. These setups are ideal for remote locations or for individuals seeking total energy self sufficiency. An off grid solar PV system typically includes solar panels plus battery storage (to save energy for use at night or during overcast periods). Here’s how an off grid system functions:

Independent Power Supply: Solar panels charge a bank of batteries during sunny periods. The stored energy in the batteries is then used to power the home or business when the sun isn’t shining.

No Grid Connection: The property is not connected to the national electricity network at all. Users rely solely on the energy generated and stored by their solar setup.

Inverters and Control: A power inverter converts the DC electricity from the solar panels or batteries into AC power for normal household/business use. Charge controllers ensure the batteries are charged optimally without overcharging.

Backup Generator (Optional): Many off grid systems include a backup generator (often diesel or petrol) for emergency power if the batteries run low during long periods of insufficient sunlight. This adds reliability, especially in climates with long winters or very limited sun.

Off grid solar can be a practical solution for providing power in areas where grid access is unavailable or prohibitively expensive to install. It is also chosen by those who want independence from energy companies.

However, to live off grid, one must carefully size their solar array and battery bank to meet their needs year round. In the UK, off grid homes are less common due to the extensive reach of the National Grid, but they do exist (for example, eco cabins, remote farm buildings, or narrowboat and caravan installations).

With the right design, an off grid solar system can reliably supply power and eliminate electricity bills entirely.

Benefits of Solar Energy

Switching to solar energy offers several advantages beyond simply reducing your carbon footprint:

• Save on energy bills

• Get paid for excess energy via the SEG

• Lower your carbon footprint

• Improve your Energy Performance Certificate (EPC) rating

• Increase the value of your property

• Gain more independence from rising energy prices

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Getting Started with Solar Energy

If you are ready to explore solar for your home or business:

1. Assess your energy use

2. Call Solarsmith today!

3. Compare quotes and financing options

4. Install and register your system

5. Monitor performance regularly

The Future of Solar in the UK

As battery costs fall and smart grid tech advances, solar will continue to play a bigger role in how the UK powers itself. With government support, greater public awareness, and rising energy costs, now is a great time to invest in solar energy.

Whether you are looking to cut bills, reduce emissions, or increase your energy independence, solar power offers a sustainable and increasingly affordable solution.