What Solar Power Really Is

Part 1. Renewable Energy Mining Series

Solar power has become one of the most widely deployed renewable energy technologies in the world. At its core the concept is straightforward. Sunlight reaches the surface of a solar panel and is converted into electricity through photovoltaic cells. While the physics behind this process involves semiconductor behavior and energy transfer the overall system logic is simple and scalable. This article provides a practical introduction to how solar systems work and why they have become a central part of today’s energy industry. In the next article we will connect these fundamentals directly to bitcoin mining.

(U.S. Department of Energy 2024)

At the center of any solar system are individual solar cells that convert sunlight into electricity. When sunlight strikes a cell it transfers energy to electrons in the semiconductor material which creates direct current electricity. The National Renewable Energy Laboratory explains that most modern solar cells use silicon based semiconductors because they are stable efficient and well suited for large scale manufacturing National Renewable Energy Laboratory 2024. An inverter then converts the direct current into alternating current so the electricity can be used by industrial equipment or delivered to the grid. This modular and inverter based architecture is one of the main reasons photovoltaic power has been adopted widely across utility and industrial energy systems. The US Department of Energy notes that improvements in inverter technology and system design have made solar power easier to integrate into existing electrical infrastructure United States Department of Energy 2024. These characteristics have driven adoption among utilities commercial operators and institutional energy providers seeking predictable daytime generation and long term operational stability.

As shown in a basic solar system diagram and component overview (Florida Solar Energy Center 2025)

The growth of solar power has been steady and measurable. The International Energy Agency reports that solar photovoltaic has been a primary driver of global renewable capacity additions over the past several years and continues to lead growth in new power installations worldwide International Energy Agency 2023. Increased manufacturing scale and technological refinement have reduced system costs over time. According to the International Renewable Energy Agency the cost of solar modules has declined by approximately eighty percent since 2010 which has significantly improved the competitiveness of solar power across energy markets International.

Global installed solar photovoltaic capacity has increased steadily over the past decade (Our World in Data 2025).

Deployment in the United States has followed a similar trajectory. Data from the US Energy Information Administration shows that utility scale solar operating capacity exceeded one hundred gigawatts by 2024 reflecting rapid expansion over the past decade US Energy Information Administration 2024. The Solar Energy Industries Association also notes that continued growth has been supported by improved reliability longer system lifespans and declining operating costs Solar Energy Industries Association 2024. These trends have positioned photovoltaic power as a dependable daytime energy source for industrial users.

Two large solar plus storage projects are under review that, if built, would each become some of the largest in the United States (Renewable Energy World 2024).

Solar systems also have operating characteristics that make their output relatively easy to forecast. Electricity production follows a daily pattern that rises in the morning peaks around midday and declines toward evening. The National Renewable Energy Laboratory explains that a photovoltaic system’s nameplate capacity does not represent continuous output because generation varies with sunlight intensity temperature and seasonal conditions National Renewable Energy Laboratory 2023. For this reason analysts use capacity factor to describe actual energy production over time. Storage systems and grid interconnections are commonly used to manage this variability and maintain stable power delivery.

The duck curve illustrates the mismatch between solar generation and grid demand throughout the day and the challenges it presents for balancing supply and demand (U.S. Department of Energy 2017).

With this foundation in place the relationship between solar power and bitcoin mining becomes easier to understand. Mining infrastructure can operate flexibly adjust load levels and align consumption with periods of strong solar generation. Solar photovoltaic power can help reduce average electricity costs and improve utilization of energy that might otherwise be curtailed during peak daylight hours. These attributes make solar a natural candidate for mining operations exploring more adaptive energy strategies. The next article in this series will examine how solar power generation and bitcoin mining systems work together in practice including load matching infrastructure design and operational considerations.

An 87 MW solar-powered bitcoin mining centre in Texas began operations as a data centre co-located with a large solar farm (PV Tech 2022).

References:

PV Tech. 2022. 87 MW solar-powered bitcoin mining centre becomes operational in Texas. October 31, 2022.

https://www.pv-tech.org/87mw-solar-powered-bitcoin-mining-centre-becomes-operational-in-texas

Florida Solar Energy Center. 2025. How a PV System Works. University of Central Florida.

https://energyresearch.ucf.edu/consumer/solar-technologies/solar-electricity-basics/how-a-pv-system-works

International Energy Agency. 2023. Renewable Energy Market Update.

https://www.iea.org

International Renewable Energy Agency. 2023. Renewable Power Generation Costs.

https://www.irena.org

National Renewable Energy Laboratory. 2023. Photovoltaic System Performance Basics.

https://www.nrel.gov

National Renewable Energy Laboratory. 2024. Introduction to Photovoltaic Technology.

https://www.nrel.gov

Our World in Data. 2025. Installed solar photovoltaic capacity.Data source International Renewable Energy Agency.

https://ourworldindata.org/grapher/installed-solar-pv-capacity

Renewable Energy World. 2024. Two massive solar and storage projects under review in California would be biggest in the U.S. October 24, 2024.

https://www.renewableenergyworld.com/solar/utility-scale/two-massive-solar-and-storage-projects-under-review-in-california-would-be-biggest-in-the-u-s

Solar Energy Industries Association. 2024. US Solar Market Insight Report.

https://www.seia.org

U.S. Department of Energy. 2017. Confronting the Duck Curve: How to Address Over-Generation of Solar Energy. Solar Energy Technologies Office.

https://www.energy.gov/cmei/articles/confronting-duck-curve-how-address-over-generation-solar-energy

United States Department of Energy. 2024. Solar Energy Technologies Overview.

https://www.energy.govUS Energy Information Administration. 2024.

Electric Power Monthly Solar Data.

https://www.eia.gov