Solar power has many applications, from powering calculators to cars to entire communities. It even powers space stations like the Webb Space Telescope. But most people are concerned about how solar panels can power their house and reduce their electricity bill. Here's a step-by-step overview of how home solar power. Solar panels turn sunlight into electricity through the photovoltaic (PV) effect, which is why they're often referred to as PV panels. The photovoltaic. Most home solar systems are “grid-tied” meaning that the solar system, home electrical system, and local utility grid are all interconnected,. It is important that your solar panels receive good insolation (sun exposure) throughout the day and are free from as much shading from trees. The most common residential solar panels contain monocrystalline or polycrystalline(also called multicrystalline) solar cells. Both types of cells produce electricity when exposed to sunlight, however there are some.