Solar power is playing an increasingly important role in delivering reliable, clean energy across the communities Xcel Energy serves. So, how does it work?
Solar energy begins with photovoltaic panels, designed to absorb photons from sunlight, triggering the movement of electrons and creating direct current, or DC, electricity.
Homes and businesses use alternating current, or AC, electricity, so the DC power generated by solar panels must be converted before it is delivered to customers. The electricity passes through an inverter, where it is converted to AC power, before moving through transformers and substations and onto the electric grid. To maximize electricity production and efficiency, some facilities use tracking technology, where panels shift to follow the sun as it moves throughout the day.
Pairing solar with battery power
What happens when the sun is not shining? That's where battery energy storage systems come in.
During periods of strong solar production, excess electricity can be stored in large-scale battery systems and discharged after sunset or during low solar generation. The combination strengthens grid reliability and expands renewable energy resources.
Solar's growing role in the energy mix
As of 2025, solar energy provides approximately 6% of the electricity supplied across Xcel Energy's service areas. That is more than 5,600 megawatts of solar capacity in operation, reflecting continued investment in renewable energy resources that help meet today’s energy needs while supporting a cleaner energy future.
What happens to solar panels at the end of their life?
Solar panels are designed to operate for decades, but like any technology, they eventually reach the end of their useful life.
Xcel Energy works with certified recycling partners to recover valuable materials from retired panels. Approximately 90% of the materials used in solar panels, including glass, aluminum, and silicon, can be reclaimed and reused in new products. As solar energy continues to expand, recycling technologies are advancing as well, creating more opportunities to reduce waste and keep it out of landfills.
Supporting a cleaner energy future
Solar panels generate electricity without producing air or water pollution. These environmental benefits, along with advances in battery storage and panel recycling, make solar energy a key component of a more sustainable energy system.
As solar technology continues to evolve, it will remain an important tool in delivering reliable, affordable and increasingly clean electricity to the communities Xcel Energy serves.