Solar panels receive sunlight during the day which they convert to energy through the photovoltaic effect. The direct current (DC) electricity created by the panels is then connected by electrical cable to a Solar Inverter which is usually installed somewhere near the switchboard. The now converted AC electricity is then connected into the switchboard so it can be used as a power source. If the home also has a connection to the grid, then the house will prioritise first the use of cheap solar energy and if there is any additional energy required then that can seamlessly continue to be drawn from the grid.