Solar energy systems have become increasingly accessible, efficient, and affordable, especially in Michigan, where more residents and business owners are realizing the long-term savings and environmental benefits they offer. Before you make the leap, it’s important to understand how solar panels and batteries work together to power your home or business.
How do solar panels work?
Solar panels are made of photovoltaic cells that convert sunlight into electricity. When sunlight strikes these cells, it excites electrons, creating direct current (DC) electricity. Because most homes and businesses use alternating current (AC), a device called an inverter converts DC power into AC power that can be used for lighting, heating, and appliances.
A solar energy system includes several key components:
- Solar panels that capture sunlight
- An inverter that converts electricity into a usable form
- A monitoring system that tracks production and performance
- A solar battery that stores excess energy
The amount of energy your panels generate depends on your roof’s orientation and shading. Panels facing south or southwest tend to produce the most energy. Modern solar panels are designed to work efficiently in cloudy conditions or during Michigan’s shorter winter days.
How do solar batteries work?
Solar batteries store excess energy generated by your panels for use when the sun isn’t shining—at night and during storms and power outages. For homes or businesses operating independently of the electrical grid, batteries are required to ensure a steady power supply. For grid-connected systems, batteries are optional but can increase your energy independence and resilience.
Batteries help stabilize your power supply and can save money over time by using stored energy during outages or peak utility hours. Advances in lithium-ion technology have made batteries more efficient, compact, and durable than ever.
Why understanding your system matters
Knowing how solar panels and batteries work helps you make informed choices about system size, cost, and expected savings. Whether you’re seeking to reduce monthly bills, minimize your carbon footprint, or gain energy independence, understanding the technology behind solar energy is the first step toward maximizing your investment.
Get affordable financing for solar panels with Michigan Saves
Michigan Saves, the nation’s first nonprofit green bank, offers low interest rate loans to finance solar panels and other energy-saving upgrades. We can help you turn your home or business into a comfortable and efficient space. Get started with Michigan Saves by finding an authorized Michigan contractor in your area and unlocking new energy-saving opportunities.




