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Solar panels contain photovoltaic cells that convert sunlight into direct current (DC) electricity. An inverter then converts the DC electricity into alternating current (AC) electricity that can be used to power your home or business. 

The cost of a solar panel system can vary depending on factors such as the size of the system, the quality of the panels, and the installation costs. However, with government incentives and tax credits, the initial cost can be significantly reduced. 

The amount of energy that solar panels can produce depends on the size of the system, the location, and the amount of sunlight received. However, on average, a 5 kW solar panel system can produce around 7,000-8,000 kWh of electricity per year.