What Is Solar Energy?

It’s energy from the sun that’s converted into electricity or heat for homes and businesses

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    rows of solar panels at sunrise

    Solar energy is the sunlight that hits your roof every day. It’s what makes a pool warm during the summer. It’s why ice melts faster during the day in the winter.

    The sun’s immense power has always been around. More recently, we’ve figured out how to harness sunlight and turn it into usable electricity.

    For homeowners, the most common way to do this is with photovoltaic (PV) solar panels. Instead of buying all your power from the utility company, you can use energy that’s already shining on your home.

    Below, we discuss the types of solar energy, how different solar arrays work and how solar energy is stored.


    Key insights

    Solar energy is the sun’s light and heat. Solar power is the electricity generated from solar energy.

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    Residential solar energy is typically generated through photovoltaic (PV) panels. Concentrating solar-thermal power (CSP) is more common for large-scale industrial projects.

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    There are three main types of solar storage: electrochemical storage, thermal energy storage and pumped-storage hydropower.

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    Solar energy definition

    Solar energy is the radiation from the sun that can be used to produce heat, cause chemical reactions or generate electricity. In simple terms, it’s the light and heat we receive from the sun every day.

    But “solar energy” isn’t the same thing as “solar power.”

    Solar power vs. solar energy

    Solar power refers specifically to electricity generated from sunlight. For example, when solar panels (PV systems) convert sunlight into electricity for your home, that electricity is solar power.

    Solar energy is the source. Solar power is the electricity you generate from it.

    Solar energy can also be used directly without converting it to electricity. For instance, sunlight can naturally light and warm your home, or it can be used in solar thermal systems to heat water.

    According to Encyclopaedia Britannica, solar energy is “radiation from the sun capable of producing heat, causing chemical reactions, or generating electricity.”

    Solar power, by contrast, refers to electricity produced by converting sunlight into usable electrical energy.

    » MORE: What is a solar home?

    How does solar energy work?

    The three main types of solar energy systems are photovoltaics (PV), concentrating solar-thermal power (CSP) and solar thermal systems.

    • Photovoltaics (PV) systems: Solar panels that convert sunlight directly into electricity for your home.
    • Concentrating solar-thermal power (CSP): Large-scale systems that use mirrors to create heat, produce steam and generate electricity (usually for power plants).
    • Solar thermal systems: These systems use the sun’s heat to warm water (e.g., solar water heaters). They are rare in the United States.

    How PV panels work

    Solar panels work by turning sunlight into electricity that your home can use. When sunlight hits a panel, it activates small cells inside. These cells create an electric current (basically, flowing electricity).

    Solar energy works by capturing sunlight and turning it into usable electricity.

    However, they produce a type called direct current (DC) power. Your home runs on alternating current (AC) power.

    That’s where the inverter comes in. The inverter converts the DC electricity from the panels into usable AC electricity. From there, the power flows into your home to run your lights, appliances and electronics. Maybe even your electric vehicle or heated pool.

    How CSP works

    Instead of using solar panels, CSP uses mirrors, heat and steam to make power.

    1. Large mirrors capture sunlight and reflect it onto a central point.
    2. That central point is a reservoir of liquid (water or another heat-transfer fluid), and it gets very hot.
    3. When the water is hot enough to boil, steam spins a big wheel.
    4. That spinning wheel generates electricity.
    5. The electricity is sent to the grid, like other power plants. Utility-scale projects (such as industrial water desalination or mineral processing) use that electricity.

    Did you know?

    CSP technologies are best equipped to provide electricity on a massive scale, powering whole cities, towns and communities, according to the National Renewable Energy Laboratory.

    » MORE: What is community solar?

    How is solar energy stored?

    Solar panels make electricity when the sun is shining. But your home still needs power at night. In fact, energy use often peaks on hot summer evenings, when panels aren’t producing much.

    Residential solar storage batteries typically cost $7,000 to $18,000.

    On sunny days, your system may generate more electricity than you need. A storage battery stores that extra power so you can use it later. Then at night, during bad weather or even in a blackout, you can keep your lights on.

    Storage also helps when production dips. Bad weather, shade and dirt can reduce output (panels still work on cloudy days, just less efficiently). A battery gives you reliable backup when production dips.

    Large CSP solar power plants commonly use thermal storage. These systems store the sun’s heat (often in materials like molten salt) and use it later to generate electricity.

    Pros and cons of solar energy

    There are several advantages and disadvantages of solar energy.

    Pros

    • Renewable resource
    • Reduces greenhouse gas emissions
    • Lowers energy costs over time
    • Promotes energy independence

    Cons

    • Intermittency
    • Weather dependent
    • Land and space use
    • Initial investment and installation costs

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      FAQ

      What are the advantages of solar energy?

      Going solar has lots of benefits for homeowners:

      • Combats climate change: Using solar energy as your primary means of electricity helps combat the negative effects of climate change. Additionally, solar panels do not produce any greenhouse gases, unlike other electricity alternatives.
      • Energy independence: As the prices of fossil fuels and oil continually increase, going solar looks more favorable. And the U.S. Bureau of Labor Statistics lists solar photovoltaic installer among its fastest-growing jobs, projecting a 42% growth rate in the occupation between 2024 and 2034.
      • Beneficial investment: The cost of going solar is gradually decreasing. Solar energy can make your utility bills cheaper, increase the value of your home and qualify you for certain financial incentives in some states.

      » EXPLORE: Solar incentives by state

      What are the disadvantages of solar energy?

      Solar is not a perfect solution for every situation.

      • Intermittency: The sun isn’t always shining, and it’s impossible to know when your solar panels will receive the solar energy to power your everyday needs. Solar storage can provide energy for times like these, but once your storage is empty, you’re left with no electricity. This can make solar panels unpredictable and possibly unreliable.
      • Initial investment and installation costs: Solar panels can be expensive to install in relation to other energy sources. The prices of panels and installations vary based on location; doing your research is imperative.
      • Land and space requirements: To absorb enough solar energy for your electricity needs, solar panels require a large amount of land. To make solar energy a realistic renewable energy source, you also need to account for energy storage, which also takes up space on your property.

      » MORE: Are solar panels worth it?

      Are there environmental impacts of solar panel production?

      Mining for metals used to create solar panels does emit greenhouse gases. And the actual manufacturing of the panels requires water and energy use (which may come from burning coal). However, the amount of carbon emissions in solar panel production is still less than that of traditional energy facilities.

      » MORE: Solar vs. fossil fuels

      How efficient are solar panels?

      The average solar panel efficiency is around 20%. Most of the sunlight that hits PV panels is lost.

      What is net metering, and how does it work?

      Net metering allows solar-powered homeowners to sell extra energy produced from solar panels back to the grid for compensation. Net metering may not be available everywhere, so make sure you're eligible before weighing this into your decision to go solar.

      What is the life span of solar panels?

      The average life span for solar panels is around 25 years. Due to continuous solar innovation, these panels often achieve a greater life span.

      Bottom line

      The sun emits solar radiation that powers everything from photosynthesis to digestion and breathing. While the sun acts as the generator for almost all everyday functions, the Earth only intercepts an incredibly small percentage of the sun’s total energy.

      Out of this small percentage, even less is absorbed by the Earth and its atmosphere. That being said, the U.S. Department of Energy estimates that the amount of solar energy absorbed by the Earth in just an hour and a half is enough to power the entire planet for a year.

      Using solar panels, you can harness this energy to power simple tasks such as air conditioning, turning on your lights and keeping your food refrigerated — often for cheaper than other electricity alternatives — while also helping the environment.


      Article sources

      ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:

      1. U.S. Department of Energy, “Solar Integration: Solar Energy and Storage Basics.” Accessed Feb. 20, 2026. 
      2. U.S. Department of Energy, “How Does Solar Work?” Accessed Feb. 20, 2026. 
      3. U.S. Department of Energy, “Concentrating Solar-Thermal Power Basics.” Accessed Feb. 20, 2026. 
      4. U.S. Energy Information Administration, “Solar explained: Solar energy and the environment.” Accessed Feb. 20, 2026. 
      5. Encyclopaedia Britannica, “Solar energy.” Accessed April 12, 2026.
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