In Simple terms, sunlight shines on the panels creating electricity. This electricity is then inverted into exactly the same type you are using in your home now. The power will either be used right away or fed back into the grid for you to use at another time with net-metering credit.
A solar photo voltaic system consists of a few components wired together which are then connected to a home or buildings power distribution network.
Those components usually include:
Solar photo voltaic array: Sunlight will strike semiconductor material inside of a solar cell, it then frees the electrons, and captures them in a electric current. This process is what converts sunlight into electricity.
Solar cells: are placed together to form a PV panel or module. Generally a solar array includes a bunch of modules wired together to get the necessary system capacity or production capabilities.
Inverters: Solar PV panels produce direct current (DC) power, which must then be converted to alternating current or (AC) power. This process is done through an inverter. Usually the inverter is located near the electrical panel.