Solar panels convert sunlight into electricity through the photovoltaic effect. When sunlight hits the panels, it excites electrons in the semiconductor material, typically silicon, creating an electric current. This process begins with the absorption of photons from sunlight. Electrons are knocked loose, allowing them to flow through the material, which generates direct current (DC) electricity. An inverter then converts this DC electricity into alternating current (AC), making it usable for powering homes and businesses, or feeding it into the electrical grid.