Solar power systems, which harness the energy of the sun to produce electricity, are a growing industry. They range from tiny solar-powered night lights to a solar-paneled roof that covers an entire home.

The key components of a solar system are:

STEP 1: Solar panels absorb sunlight during the day, transforming it into electricity. The electricity is then changed to alternating current (AC) power by an inverter.

Unlike most power from the grid, which is generated during “peak” hours, solar-generated electricity can be stored in a battery for later use. This can be beneficial in times of shortages, such as in summer and fall, when the electric grid is unable to provide power.

There are several types of solar power systems, including residential, commercial and industrial. Each type varies in size, cost and efficiency.

Solar Power Systems: How They Work and What You Need to Know Before Going Solar

Residential, or home solar, is designed to meet the needs of individual homeowners. They can be off-grid, tied to the grid, or net metered.

Commercial, or business solar, is designed to provide energy for businesses. They can be grid-tie, connected to the grid but without a battery, or net metered.

There are many other factors that should be considered when installing a solar power system, including the orientation of your roof and any obstructions to sunlight. Getting these right can help you generate maximum energy from your roof, and save money on your utility bills in the long run.