How do solar panels generate electricity?

Solar panels convert sunlight directly into electrical energy via the photovoltaic (PV) effect. Each panel is made of semiconductor layers (usually silicon) forming a p-n junction. When photons strike the cell, they can be absorbed and transfer energy to electrons. This dislodges electrons from atoms, creating free charge carriers. The cell's built-in electric field (at the junction) drives electrons to one side, creating a voltage. Conductive contacts allow these electrons to flow as current when the circuit is closed. In short, light → photons → electron excitation → electrical current. The result is direct current (DC) power, which can then be used or inverted to AC for grid use.