jake's source is an excellent explanation of converting sunlight to electricity, however, a more economical conversion of sunlight to heat is also available and has been for a number of years. These are simple, usually roof-mounted panels of glass that have PVC piping routed through them. The PVC is usually filled with ethylene-glycol (antifreeze) which is heated by the sunlight. This is pumped through a heat exchanger and routed into the house or other building. Quite simple and economical. It's used extensively here in the western U.S. , but usually as a supplemental source of heat...