Three options:
First it’s used within the home, powering whatever you’ve got plugged in and drawing power. This offsets how much energy you have to purchase throughout the day from the grid (your electricity supplier).
If you are generating more energy than what you are consuming, that extra energy can then be dumped into a battery system to be used later when the sun isn’t up or shining brightly. (or in some cases during hours when purchasing electricity is more expensive than other times)
Finally if you don’t have a battery system or that battery is full, the excess energy is exported to the grid and sold to your electricity supplier. This takes load off their generators burning less fossil fuels to power your neighbours. While this is an option; you usually get paid far less per kwh than what you’ll spend to purchase that same energy from the grid later, which is why a system that includes battery storage for night is more ideal.
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