A basic home PV system consists of PV cells connected and packaged together in weather-protected modules, which are fastened side-by-side on a racking system to form an array. The PV modules produce direct current (DC) which, in a grid-tied system, flows to a grid-interactive inverter. An inverter changes DC voltage to the alternating current (AC) for the household electric circuit powering wall outlets and all AC appliances. Some systems are grid-tied with battery backup and batteries can usually be added after a complete solar installation.

Excess power from the inverter may flow out of the house through the utility company's electric meter into the citywide grid. When this happens, the meter may run backward, and the utility will credit the outflowing electricity against electricity purchased from the grid at other times, like at night. This process is called net metering.

In an off-grid system, DC power flows from the modules through a charge controller (also called a regulator), which is an electronic device that produces a smooth flow of current at the desired voltage. From the charge controller, the power can go to a set of storage batteries and then on to the inverter, as needed.

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