Photovoltaic panels do not store energy; rather, they convert sunlight into electricity through the photovoltaic effect, which can then be utilized directly, transferred to a grid, or stored in batteries. Here's how the storage process works: 1. Even the most ardent solar evangelists can agree on one limitation solar panels have: they only produce electricity when the sun is shining. But, peak energy use tends to come in the evenings, coinciding with decreased solar generation and causing a supply and demand issue. Storage systems turn solar power from a “use it or lose it” resource into a reliable, flexible energy source.