It is a simple solar system consisting of a number of Solar Panels (also called an array) and an electronic device called an Inverter. The inverters task is to convert the highly variable DC energy from the array into a stable 230 volts AC (the same energy used by your home).
The system requires no batteries as the inverter simply converts the energy from the array into mains electricity; it then powers your appliances or feeds excess energy back into the grid network.
The grid then acts like a 'battery' that you draw energy from (ie at night) rather than having batteries at your home. You can generate your own clean electricity and feed any extra back to the electrical network.
Any excess energy your system generates that is sent back into the grid gets recorded and credited against your normal energy usage. A new meter called an 'import / export meter' is required as part of the installation process; it records all energy coming into or going out of the home. Refer 'feed-in-tariff' in rebates for more info.
