How do the utility interactive PV systems work?
The solar panels generate DC electricity directly from the sun. Then a piece of equipment called an inverter changes the DC into AC, the kind of power that is in the utility grid and flows out of the wall sockets in a normal home. The solar panels supply the home with the power it requires, and any left over power is fed into the grid, running the meter backwards. When the house requires more power than available from the solar system, it draws from the grid, running the meter forward. So the utility grid is like a large storage system.