Solar panels can seem like a mysterious or complex piece of technology, but the basic idea is surprisingly simple: they capture energy from daylight and convert it into electricity your home can use.

For many homeowners, this is the main appeal. A solar photovoltaic (PV) system can reduce the amount of electricity you need to buy from the grid, helping to cut your energy bills over the long term. If your panels generate more power than you use, you may also be able to sell the excess back to an energy supplier through the Smart Export Guarantee (SEG) .

But before deciding whether solar panels are worth it for your home, it helps to understand how they actually work and how their performance changes in the real world.…