How does a home solar power system work

Solar panels capture sunlight and generate direct current. The electrical energy is fed into a device called an inverter.
The inverter converts direct current into alternating current (AC), which is the type of electricity your home can use. Then, the AC power converted from the inverter will be fed to the main panel of the house. At that time, all the electricity not used by your home was distributed to the grid.
Your electricity meter will output the excess electricity generated to the grid according to your electricity usage agreement to be credited to your account. Then, when the system is not in production, at night and on dark days, the electricity meter will use the balance in your account.