At a high level, solar panels are made up of solar cells, which absorb sunlight. They use this sunlight to create direct current (DC) electricity through a process called "the photovoltaic effect. Solar technologies capture this radiation and turn it into useful forms of energy. There are two main types of solar energy technologies: photovoltaics. A photovoltaic (PV) cell, commonly called a solar cell, is a nonmechanical device that converts sunlight directly into electricity. Understanding how. Solar power, also known as solar electricity, is the conversion of energy from sunlight into electricity, either directly using photovoltaics (PV) or indirectly using concentrated solar power.