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As certain types of materials are exposed to sunlight, they give off small amounts of electricity releasing what is referred to in the scientific world as the "photovoltaic effect."
Solar panels generate solar energy when sunlight (composed of photons) shine down on a solar panel. When striking a PV cell on the solar panel, these photons are then transferred to an electron in a cell's atom. The electron, with a newfound energy, is removed from its standard position on the atom and becomes a part of the current in an electrical curcuit. With the special electrical properties of the PV cell, voltage is provided that pushes the current through a television set, air conditioning system, or radio.
source: British Photovoltaic Association