A Simple Guide to Solar Energy: How Do Solar Panels Work?

Across Malaysia, more homeowners are making the switch to solar energy. From landed homes in Penang to urban rooftops in Kuala Lumpur, solar panels are becoming a familiar sight. With electricity tariffs rising and the NEM Rakyat 3.0 scheme helping households cut down their bills, solar isn’t just a trend but it’s a smart financial decision.

If you’ve ever wondered how solar panels work and how they turn sunlight into electricity, you’re in the right place. Let’s break it down step by step.

Components Of A Solar Panel System

A solar panel system typically includes four main parts: photovoltaic (PV) cells, inverters, a PV distribution board, and the main/sub distribution board (DB) that connects your home to the grid.

Photovoltaic Cells

Made from silicon, PV cells capture sunlight and generate an electric charge through the photovoltaic effect. Different types of solar panels in Malaysia such as monocrystalline and polycrystalline that vary in efficiency and cost.

Inverters

Since solar panels produce direct current (DC), inverters convert it into alternating current (AC), which is what your appliances use. Homeowners can choose between different inverter types, see our guide on string vs microinverters to learn which works best for your roof.

PV Distribution Board Box (PVDB Box)

The PVDB acts like a switchboard. It houses safety devices such as miniature circuit breakers (MCB) and residual current circuit breakers (RCCB), before sending electricity to the home’s DB box.

Main/Sub Distribution Board Box (DB Box)

Finally, the DB box distributes electricity around your house. It also connects your home to the grid, allowing you to export any extra electricity generated.

How Solar Panels Work To Power Your Properties

Most solar panels for homes in Malaysia are grid-tied, meaning they connect both to your home’s electrical system and to Tenaga Nasional Berhad (TNB)’s grid. Here’s how the process works:

Step 1: Absorption Of Sunlight

It all begins with the sun. When sunlight strikes a solar panel, the photovoltaic (PV) cells create an electric charge through the PV effect. Think if the panels as giant sponges, soaking up sunlight and turning it into energy.

Step 2: Generation Of Electricity

The energy produced is in the form of direct current (DC) electricity. This flows in a single direction, but it’s not yet usable for your household appliances.

Step 3: Conversion To Usable Power

Enter the solar inverter. This clever device transforms DC electricity into alternating current (AC), which is the type of electricity we all use at home. Without the inverter, your fridge, lights, and air-con wouldn’t be able to run on solar power.

Step 4: Utilisation And Distribution

Enter the solar inverter. This clever device transforms DC electricity into alternating current (AC), which is the type of electricity we all use at home. Without the inverter, your fridge, lights, and air-con wouldn’t be able to run on solar power.

Here’s the exciting part: if your panels produce more electricity than you use, the excess doesn’t go to waste. Instead, it flows back into TNB’s grid. Thanks to Net Energy Metering (NEM), you’ll receive credits that directly reduce your electricity bills.

Step 5: Energy Storage (Optional)

Here’s the exciting part: if your panels produce more electricity than you use, the excess doesn’t go to waste. Instead, it flows back into TNB’s grid. Thanks to Net Energy Metering (NEM), you’ll receive credits that directly reduce your electricity bills.

Factors Influencing Solar Panel Sun Absorption

Solar panels are a smart choice, but their efficiency depends on a few key factors:

Orientation And Tilt Of The Roof

The angle and direction of your panels directly affect how much sunlight they can capture. Panels are most efficient when positioned perpendicular to the sun’s rays.

Tip! You can check your rooftop’s solar potential with GetSolar’s quick 3-step suitability guide.

Type Of Panel Used

The efficiency of solar panels depends on their build and technology. For example, monocrystalline panels tend to be more efficient but costlier than polycristalline. Learn more about the types of panels available in Malaysia.

Weather Conditions

Cloudy skies can reduce panel output. Don’t worry though as your home simply draws power from the grid during low-sunlight periods.

Tip! If shading (from trees or buildings) is a problem, pairing panels with power optimisers or a hybrid solar system can help.

Benefits Of Installing Solar Panels

Going solar is about more than just savings, it’s about energy independence and contributing to a greener Malaysia.

Lower Energy Bills

By producing your own power, you could reduce your TNB bill by up to 80%. Some homeowners even manage RM0 bills each month thanks to NEM.

Reduced Reliance On The Grid

With panels lasting 25-40 years, solar gives you long-term protection against rising tariffs and energy security for decades.

Environmental Benefits

Unlike fossil fuels, solar generates clean electricity without polluting the air or water. Every kilowatt-hour of solar helps cut carbon emissions.

Potential for Extra Income

Through GetSolar, some homeowners can also participate in Renewable Energy Certificate (REC) programmes, earning additional income while offsetting solar costs faster.

FAQs About Solar Panels

Can solar panels work during cloudy dats or at night?

Yes! Even on cloudy days they still generate some power, though less than in full sun. At night, panels don’t generate electricity, so your home uses grid power (or battery storage if installed).

Do I need a battery for my solar system?

Not necessarily. Thanks to NEM, most Malaysians enjoy savings without investing in batteries. Batteries are optional for added independence.

How much energy can a solar system generate?

On average, a 1kW solar system in Malaysia produces 1,300–1,600 kWh per year—enough to cover a significant portion of household needs.

Does temperature affects solar panel output?

Yes. Panels perform slightly less efficiently in very high heat but still work reliably across Malaysia’s climate. Interestingly, they can be more efficient on cool, sunny days.

Unlock Your Solar Potential Today

Solar isn’t just for the future—it’s already saving Malaysian households money today. With GetSolar’s rent-to-own plans starting from RM267/month, you can enjoy the benefits of solar with zero upfront cost and full warranty protection.

Ready to take the next step? Get your free solar quote today and start enjoying clean, affordable solar power.