--- title: How Solar PV Works? description: This article tells you about how solar PV system works, give information about parts of a plant, types of solar PV and their finanicial classification. image: https://www.soorpaenergy.com/hubfs/eynfbn4oo7umv8bybl1u%20(1)%20(1)-1.webp --- [+91-9717345131](tel:+91-9717345131) [sales@soorpaenergy.com](mailto:sales@soorpaenergy.com) [facebook icon](https://www.facebook.com/Soorpaenergy/) [twitter icon](https://twitter.com/ProdahSolutions) [instagram icon](https://www.instagram.com/prodahsolutions/) [linkedin icon](https://www.linkedin.com/company/soorpa-energy/) [![Soorpa Energy Logo](https://www.soorpaenergy.com/hs-fs/hubfs/logo.png?width=144&height=48&name=logo.png)](https://22065757.hs-sites.com/en/homepage) ![burger](https://www.soorpaenergy.com/hubfs/burger.svg) ![Group 1](https://www.soorpaenergy.com/hubfs/Group%201.svg) - [Solar Estimator](https://www.soorpaenergy.com/solar-estimator) - [Solar Knowledge](https://www.soorpaenergy.com/solar-knowledge) Show submenu for Solar Knowledge - [Solar Panels](https://www.soorpaenergy.com/solar-panel) - [Solar Policies and Regulations](https://www.soorpaenergy.com/solar-policies-and-regulations) - [Operation and Maintenance of Solar Plants](https://www.soorpaenergy.com/operation-and-maintenance-of-solar-plants) - [Solar Costs and Benefits](https://www.soorpaenergy.com/solar-costs-and-benefits) - [Energy Saving Methods](https://www.soorpaenergy.com/energy-saving-methods) - [Financing Solar Plants](https://www.soorpaenergy.com/financing-solar-plants) - [Services](https://www.soorpaenergy.com/services) - [Projects](https://22065757.hs-sites.com/projects) - [About Us](https://www.soorpaenergy.com/about-us) Show submenu for About Us - [Vision & Mission](https://22065757.hs-sites.com/en/about-us#vision-mission) - [Values](https://22065757.hs-sites.com/en/about-us#values) - [Our journey](https://22065757.hs-sites.com/en/about-us#timeline) - [Leadership](https://22065757.hs-sites.com/en/about-us#leadership) - [Contact Us](https://www.soorpaenergy.com/contact-us) - [Solar Estimator](https://www.soorpaenergy.com/solar-estimator) - [Solar Knowledge](https://www.soorpaenergy.com/solar-knowledge) Show submenu for Solar Knowledge - [Solar Panels](https://www.soorpaenergy.com/solar-panel) - [Solar Policies and Regulations](https://www.soorpaenergy.com/solar-policies-and-regulations) - [Operation and Maintenance of Solar Plants](https://www.soorpaenergy.com/operation-and-maintenance-of-solar-plants) - [Solar Costs and Benefits](https://www.soorpaenergy.com/solar-costs-and-benefits) - [Energy Saving Methods](https://www.soorpaenergy.com/energy-saving-methods) - [Financing Solar Plants](https://www.soorpaenergy.com/financing-solar-plants) - [Services](https://www.soorpaenergy.com/services) - [Projects](https://22065757.hs-sites.com/projects) - [About Us](https://www.soorpaenergy.com/about-us) Show submenu for About Us - [Vision & Mission](https://22065757.hs-sites.com/en/about-us#vision-mission) - [Values](https://22065757.hs-sites.com/en/about-us#values) - [Our journey](https://22065757.hs-sites.com/en/about-us#timeline) - [Leadership](https://22065757.hs-sites.com/en/about-us#leadership) - [Contact Us](https://www.soorpaenergy.com/contact-us) # Blog ## How Solar PV Works? 26 February, 2019 | [Solar Panels](https://www.soorpaenergy.com/en/blog/tag/solar-panels) Solar PV power plant consists of 1. Solar panels 2. Solar Inverter 3. Battery (optional) ###### **Solar Panels & Inverter** Solar panels convert solar radiation into DC electricity. Our loads at home or factories run using AC electricity. To convert DC electricity from panels into AC electricity, solar inverter is required. AC electricity from solar inverter can be used to run loads. ###### **Battery** Solar radiation is intermittent in nature. Therefore, more often production from solar panels does not match load requirement. To balance generation from solar and load, there are two options: **Batteries** Store electricity from solar panels into battery and withdraw as per load requirement **Grid** When solar generation is more than load, inverter exports the extra generation into grid. The exported units can be used when generation from solar is less or not available to run loads. These exported units are recorded by your utility; adjusted in monthly bills. This process is called net metering. Please read here about net metering. ###### **On-Grid/Off-Grid Systems** If you use grid to balance solar generation and load, they are called on-grid systems. If you use batteries, they are called off-grid systems. On-grid systems cost less but work only when electricity connection and supply are there. Off-grid systems cost more as it involves extra money for batteries. Also, type and amount of load does not matter in on-grid systems as grid takes care variations from load and solar. ###### **Finance of Solar Systems** When it comes to financing Solar PV Power Systems, two models in the industry work. They are OPEX and CAPEX. **CAPEX** In CAPEX model, customer invests, owns and enjoys all the benefits from the system. Customers generally hire third parties to maintain the solar plant for yearly fees. [Check Out How Much Area Do You Need to Meet Your Energy Requirements.](https://prodahsolutions.com/how-much-area-do-i-need/) **OPEX** In OPEX model, customers just provide space for installation of the solar plant. The third party invests, operates and maintains the power plant. Customer pays monthly bills at a discount of the existing electricity bill. This frees up capital for the customer to invest in other activities. Read more about [CAPEX, OPEX](https://prodahsolutions.com/solar-financing-options/). ###### Recent Posts - [Solar PV Power Plants Financing – CAPEX and OPEX / PPA](https://www.soorpaenergy.com/en/blog/solar-financing-options) - [How to Calculate Solar Plant Capacity Required for You](https://www.soorpaenergy.com/en/blog/how-to-calculate-solar-plant-capacity-required-for-you) - [What are On-Grid, Off-Grid & Hybrid Solar Systems?](https://www.soorpaenergy.com/en/blog/types-of-solar-systems) - [How Much Area do I Need?](https://www.soorpaenergy.com/en/blog/how-much-area-do-i-need) - [Solar Rooftop Power Plants Cost in Delhi NCR](https://www.soorpaenergy.com/en/blog/cost-of-on-grid-solar-system-in-delhi-gurgaon) ###### Categories - [Solar Panels](https://www.soorpaenergy.com/en/blog/tag/solar-panels) - [Financing Solar Plants](https://www.soorpaenergy.com/en/blog/tag/financing-solar-plants) - [Solar Policies and Regulations](https://www.soorpaenergy.com/en/blog/tag/solar-policies-and-regulations) ## Leave a Comment [![Soorpa Energy Logo](https://www.soorpaenergy.com/hs-fs/hubfs/logo.png?width=115&height=38&name=logo.png)](https://22065757.hs-sites.com/en/homepage) Soorpa Energy provides customized solar solutions for industrial, commercial and residential consumers across India. 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