Source: FreeFoto.comPure silicon is the basic element of solar panels. This is because when silicon is stripped of all impurities, it makes an ideal neutral platform for the tansmission of electrons. Also known as photovoltaic panels, the silicon within them are formed into very thin wafers. Silicon in its stable structure has no charge therefore it is combined with other elements such as phosphorus, therefore resulting in a negatively charged silicon/phosphorus plate. When the sun rays hit the panels, the photons from the sun bombard the silicon/phosphorus atoms, causing the electrons to be broken off. These electrons are caught by the small wires and when connected in a circuit, will generate electricity. An inverter is then needed to convert the Direct Current electricity to Alternating Current for use in homes.
Before i end off this post, the following picture shows solar panels being installed on rooftops as a source of electricity for households:
Source: http://kohm.org/blog/?p=1758
Informations from the above are adapted from:
http://ezinearticles.com/?How-Does-Solar-Power-Work?&id=68282
http://www.wisegeek.com/how-do-solar-panels-work.htm