Solar basics

How does a home solar system work?

A home solar system is a flow of energy between a few distinct parts. Understanding those parts makes it much easier to see where a battery controller can save money, and where it should stay out of the way.

Reviewed by QUBILY · 25 October 2026

Solar panels produce direct-current electricity

Photovoltaic cells convert light into electrical energy. Groups of cells form a panel, and panels are wired into one or more strings. Their output changes with sunlight, temperature, shading, orientation and the limits of the equipment connected to them.

Panels produce direct current (DC). Homes and the public electricity network normally use alternating current (AC), so the next part of the system has to convert it.

The inverter directs and converts the energy

A solar inverter converts the panels' DC output into AC for the home. A hybrid inverter can also manage a battery: charging it from solar or the grid and discharging it when the home needs energy.

The inverter remains responsible for its electrical limits and protections. An optimization product should work inside those limits, not replace them.

The home uses the nearest useful source

When the panels are producing, the home can use that energy immediately. Surplus may charge the battery or be exported to the grid. When solar is insufficient, the battery or grid can supply the difference, depending on the inverter settings and battery state.

A meter records what crosses the grid boundary. It does not necessarily show every internal flow between panels, battery and home, which is why local inverter data is valuable.

  • Solar first serves the home's current demand
  • Surplus can charge the battery or go to the grid
  • The battery can cover demand when solar falls
  • The grid supplies any remaining shortfall

A forecast helps decide how much to charge

Filling a battery from the grid can make sense before an expensive period or a day with little solar. Filling it to 100% in every charging window can also leave no space for free solar later.

QUBILY combines the next solar forecast, the home's measured demand and current electricity prices to choose one bounded battery target. Prices can come from a supported live market feed or a supplier schedule. The Energy Black Box applies that target locally and verifies the value reported by the inverter.

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