Yes, Solar panels do produce electricity in cloudy or rainy weather albeit with reduced efficiency. This fall in production is considered in the unit generation estimates provided for every project.

There are 3 types of Solar systems depending on whether the plant is linked to the power grid or battery systems for storage.

• On-grid solar systems use common solar inverters and are connected to the public electricity grid. Any excess solar power that you generate is exported to the electricity grid and one usually get paid a feed-in-tariff or credits for the energy you export. The policy for getting credits for energy exported to the credit is termed as “Net-Metering Policy” and is available currently in most states of India.
• Off-grid solar systems are not connected to the electricity grid and therefore requires battery storage. An off-grid solar system must be designed appropriately so that it will generate enough power throughout the year and have enough battery capacity to meet the home’s requirements, even in the depths of winter when there is less sunlight.
• Hybrid solar systems combines solar and battery storage in one and are now available in many different forms and configurations. This means being able to store solar energy that is generated during the day and using it at night. When the stored energy is depleted, the grid is there as backup, allowing consumers to have the best of both worlds.