Solar

Photovoltaic (PV) System A solar electric setup that turns sunlight into usable electricity

Alex Rivera By Alex Rivera, Senior Solar Editor · Updated 2026-06-09
← All Glossary Terms Definition
A photovoltaic (PV) system is a solar electric system that converts sunlight directly into electricity using semiconductor panels. Beyond the panels, a complete setup includes an inverter to convert the power for home use, racking to mount the array, and optionally batteries for storage. The term 'PV' exists to distinguish solar electricity from solar thermal systems, which heat water rather than generate power. When you shop for residential solar, you're almost always looking at a PV system. The exact size, layout, and components vary by your roof, energy use, and goals. Pricing, incentives, and net-metering rules also vary by state and utility, so the value of any PV system depends heavily on where you live and how your installer designs it.
Also Known As
Solar PV system Solar electric system Solar panel system PV array
Used in Context
  1. Before signing, you ask the installer to break out the cost of the panels, inverter, and racking that make up your PV system.
  2. A homeowner researching solar quotes through Dreamy Leads wants to compare PV system sizes from several local installers.
  3. Because you also want hot water savings, your contractor explains why a PV system handles electricity while a separate solar thermal unit heats water.
Related Terms
Solar Solar Inverter The device that converts your panels' DC power into usable AC electricity Solar Kilowatt-Hour (kWh) The unit of energy used for electricity billing—one kilowatt of power used for one hour Solar Monocrystalline Solar Panels High-efficiency solar panels made from single-crystal silicon with a uniform black look Solar Microinverter A panel-level inverter that converts DC to AC right at each solar panel Solar Interconnection Agreement The utility contract that lets your solar system legally connect to the grid Solar Solar Lease A financing deal where a third party owns the panels and you pay fixed monthly rent to use them Solar Solar Loan Financing that lets you borrow to buy and own your solar panel system outright Solar Solar Payback Period How long it takes for energy-bill savings to cover what you paid for solar after incentives
Frequently Asked Questions

What's the difference between PV and solar thermal?

A PV system uses semiconductor panels to convert sunlight into electricity, while solar thermal systems capture the sun's heat to warm water. PV powers your home's lights and appliances; thermal typically handles hot water. The 'PV' label exists specifically to mark this distinction between solar electricity and solar heating.

What parts make up a PV system?

A PV system includes semiconductor solar panels, an inverter that converts the generated power for use, and racking that mounts everything to your roof or ground. Batteries are an optional add-on for storing electricity. The exact configuration varies by your home, energy needs, and the design your installer recommends.

Do I need batteries with a PV system?

No, batteries are optional. A PV system generates electricity from sunlight using panels and an inverter without storage. Batteries let you store power for nighttime or outages, but whether they make sense depends on your goals, local net-metering rules, and budget, which vary by state and utility.

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