Photovoltaic cells look similar to solar panels but they work in a different way. Solar panels are use to produce hot water or even steam. Photovoltaic panels convert the sunlight directly into electricity. A typical example of a device powered by photovoltaic cells is a solar powered calculator. This type of device only needs a small amount of electrical power to work and can even be used in a room with artificial light (bulbs / fluorescent light).

Although we see photovoltaic cells powering small devices such as calculators they have a more practical application especially in the third world. Photovoltaic cells have been developed that will provide electrical power to pump drinking water from wells in remote villages. British Telecom have developed a system that can be used to power a radio telephone system. During the day the cells power the phone and also charge batteries. The batteries power the phone during the night. Often photovoltaic cells are used as a backup to conventional energy. If conventional fails the cells are used to produce electricity.