How does grid-connected solar energy work?

 

The system generates power using photovoltaic panels and injects it directly into the electricity grid.

In countries like Spain, Germany and Italy, electricity distribution companies are required by law to purchase the power injected into their grids by photovoltaic facilities. The sale price for the power is fixed by law to incentivize solar generating.

Photovoltaic generating facilities range from small-scale installations producing 1 to 5 kW deployed on domestic terraces to industrial roof- or ground-mounted plants with a capacity of up to 100 kW, and even plants capable of generating several megawatts.