Solar panels absorb the sunlight and convert solar energy into DC (direct current) electricity

The inverter then converts this DC electricity to 240v AC (alternating current) electricity for use in your home

Electricity from the inverter is fed into your switchboard where it is distributed to appliances in your home. You will now be running these appliances for free if your system is producing enough power

The bi-directional (smart) meter measures both the electricity you use (during the day when you house is using more electricity than is generated and at night) and the excess electricity generated by your solar system and not used inside your home. Power consumption is measured in half hour intervals.

Excess electricity is fed back into the grid for your neighbours to use. Depending on your location and electricity provider you may be paid for this electricity which is called a feed in tariff.