Solar panels do work during cloudy, overcast days, but their efficiency level is reduced in accordance to the dimness. As a solar panel is a photovoltaic cell, it requires photons to operate, and cloudy conditions reduce the amount of light available for absorption.
It’s important to note that solar thermal panels, which generate hot water not electricity, will still work in cloudy/overcast days. They use the sun’s radiation to heat the water and are not as reliant on direct sunlight as photovoltaic panels, which generate electricity.
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