Sunlight—solar energy—can be used to generate electricity, provide hot water, and to heat, cool, and light buildings.

Photovoltaic (solar cell) systems convert sunlight directly into electricity. A solar or PV cell consists of semiconducting material that absorbs the sunlight. The solar energy knocks electrons loose from their atoms, allowing the electrons to flow through the material to produce electricity. PV cells are typically combined into modules that hold about 40 cells. About 10 of these modules are mounted in PV arrays. PV arrays can be used to generate electricity for a single building or, in large numbers, for a power plant. A power plant can also use a concentrating solar power system, which uses the sun's heat to generate electricity. The sunlight is collected and focused with mirrors to create a high-intensity heat source. This heat source produces steam or mechanical power to run a generator that creates electricity.

Solar water heating systems for buildings have two main parts: a solar collector and a storage tank. Typically, a flat-plate collector—a thin, flat, rectangular box with a transparent cover—is mounted on the roof, facing the sun. The sun heats an absorber plate in the collector, which, in turn, heats the fluid running through tubes within the collector. To move the heated fluid between the collector and the storage tank, a system either uses a pump or gravity, as water has a tendency to naturally circulate as it is heated. Systems that use fluids other than water in the collector's tubes usually heat the water by passing it through a coil of tubing in the tank.

There are a number of solar incentives, both state and federal, to aid customers in achieving their energy, economic, and environmental goals.