Photovoltaic system (PV) or solar power system, is a power system designed to supply usable electrical power. It consists of an arrangement of components, including solar panels, which convert sunlight into electricity, an inverter to change the electric current from DC to AC, as well as mounting, cabling, and other electrical accessories. A solar tracking system can improve the system's overall performance by tracking the suns path during production times. PV systems can include an integrated battery (Storage) solution. PV systems should not be confused with other technologies, such as concentrated solar power or solar thermal, used for heating or cooling applications.
PV systems range from rooftop-mounted or building-integrated systems with capacities from a few kilowatts, to large utility-scale power stations of hundreds of megawatts. Most PV systems are grid-connected, while off-grid or stand-alone systems only account for a small portion of the market.
Prices for PV systems have rapidly declined in recent years, with PV modules accounting for less than half of the system's overall cost, leaving the rest to the remaining BOS (Balance of System) -components and to soft costs, such as permitting, inspection, customer acquisition, connection, installation labour and financing costs etc.