Sunlight hits the layers of your solar panels, and photons and electrons interact to create an electrical current.
The electrical current flows from the panels down to your solar inverter, which converts the energy generated from your panels (DC) into usable energy for your home (AC).
The AC energy flows from the inverter into your breaker panel, which will then circulate it throughout your home.
Any unused AC will flow back to your utility meter and remain available for consumption. In some cases homeowners have the ability to return that unused AC back to the electric grid in the form of energy credits on their next power bill. This process is known as net metering in electricity generation.