Photovoltaic system

A photovoltaic system, also called a PV system or solar power system, is an electric power system designed to supply usable solar power by means of photovoltaics. It consists of an arrangement of several components, including solar panels to absorb and convert sunlight into electricity, a solar inverter to convert the output from direct to alternating current, as well as mounting, cabling, and other electrical accessories to set up a working system. Many utility-scale PV systems use tracking systems that follow the sun's daily path across the sky to generate more electricity than fixed-mounted systems.

Photovoltaic systems convert light directly into electricity and are not to be confused with other solar technologies, such as concentrated solar power or solar thermal, used for heating and cooling. A solar array only encompasses the solar panels, the visible part of the PV system, and does not include all the other hardware, often summarized as the balance of system (BOS). PV systems range from small, rooftop-mounted or building-integrated systems with capacities ranging from a few to several tens of kilowatts to large, utility-scale power stations of hundreds of megawatts. Nowadays, off-grid or stand-alone systems account for a small portion of the market.

Operating silently and without any moving parts or air pollution, PV systems have evolved from niche market applications into a mature technology used for mainstream electricity generation. Due to the growth of photovoltaics, prices for PV systems have rapidly declined since their introduction; however, they vary by market and the size of the system. Nowadays, solar PV modules account for less than half of the system's overall cost, leaving the rest to the remaining BOS components and to soft costs, which include customer acquisition, permitting, inspection and interconnection, installation labor, and financing costs.