The sun provides free energy every day in the form of sunlight.
Solar panels absorb the sunlight and turn it directly into electricity.
Solar panels produce DC electricity and your home uses AC electricity. Inverters convert the DC into AC so your home can use it.
The electricity is sent directly to your home and powers all of your appliances.
When you produce more electricity than you use, any extra will then flow back out to the grid. Your meter will actually spin backwards and earn you credits.
Credits are extra savings when you produce more electricity than you use. The credits earned are reflected on your monthly utility bill. In other words, the utility company pays you.