Solar cells convert sunlight directly into electricity. Solar cells are often used to power calculators and watches. They are made of semiconducting materials similar to those used in computer chips. When sunlight is absorbed by these materials, the solar energy knocks electrons loose from their atoms, allowing the electrons to flow through the material to produce electricity. This process of converting light (photons) to electricity (voltage) is called the photovoltaic (PV) effect.

Solar cells are typically combined into modules that hold about 40 cells; a number of these modules are mounted in PV arrays that can measure up to several meters on a side. These flat-plate PV arrays can be mounted at a fixed angle facing south, or they can be mounted on a tracking device that follows the sun, allowing them to capture the most sunlight over the course of a day. Several connected PV arrays can provide enough power for a household; for large electric utility or industrial applications, hundreds of arrays can be interconnected to form a single, large PV system.

Thin film solar cells use layers of semiconductor materials only a few micrometers thick. Thin film technology has made it possible for solar cells to now double as rooftop shingles, roof tiles, building facades, or the glazing for skylights or atria. The solar cell version of items such as shingles offer the same protection and durability as ordinary asphalt shingles.

Some solar cells are designed to operate with concentrated sunlight. These cells are built into concentrating collectors that use a lens to focus the sunlight onto the cells. This approach has both advantages and disadvantages compared with flat-plate PV arrays. The main idea is to use very little of the expensive semiconducting PV material while collecting as much sunlight as possible. But because the lenses must be pointed at the sun, the use of concentrating collectors is limited to the sunniest parts of the country. Some concentrating collectors are designed to be mounted on simple tracking devices, but most require sophisticated tracking devices, which further limit their use to electric utilities, industries, and large buildings.

The performance of a solar cell is measured in terms of its efficiency at turning sunlight into electricity. Only sunlight of certain energies will work efficiently to create electricity, and much of it is reflected or absorbed by the material that make up the cell. Because of this, a typical commercial solar cell has an efficiency of 15%-about one-sixth of the sunlight striking the cell generates electricity. Low efficiencies mean that larger arrays are needed, and that means higher cost. Improving solar cell efficiencies while holding down the cost per cell is an important goal of the PV industry, NREL researchers, and other U.S. Department of Energy (DOE) laboratories, and they have made significant progress. The first solar cells, built in the 1950s, had efficiencies of less than 4%.

We have been harnessing the wind's energy for hundreds of years. From old Holland to farms in the United States, windmills have been used for pumping water or grinding grain. Today, the windmill's modern equivalent - a wind turbine - can use the wind's energy to generate electricity.

Wind turbines, like windmills, are mounted on a tower to capture the most energy. At 100 feet (30 meters) or more aboveground, they can take advantage of the faster and less turbulent wind. Turbines catch the wind's energy with their propeller-like blades. Usually, two or three blades are mounted on a shaft to form a rotor.

A blade acts much like an airplane wing. When the wind blows, a pocket of low-pressure air forms on the downwind side of the blade. The low-pressure air pocket then pulls the blade toward it, causing the rotor to turn. This is called lift. The force of the lift is actually much stronger than the wind's force against the front side of the blade, which is called drag. The combination of lift and drag causes the rotor to spin like a propeller, and the turning shaft spins a generator to make electricity.

Wind turbines can be used as stand-alone applications, or they can be connected to a utility power grid or even combined with a photovoltaic (solar cell) system. For utility-scale sources of wind energy, a large number of wind turbines are usually built close together to form awind plant. Several electricity providers today use wind plants to supply power to their customers.

Stand-alone wind turbines are typically used for water pumping or communications. However, homeowners, farmers, and ranchers in windy areas can also use wind turbines as a way to cut their electric bills.

Small wind systems also have potential as distributed energy resources. Distributed energy resources refer to a variety of small, modular power-generating technologies that can be combined to improve the operation of the electricity delivery system.