In short, no, solar panels do not need direct sunlight to generate electricity. In fact, they can produce power in various lighting conditions, including cloudy and overcast days.
The short answer is no—solar panels can still generate electricity in indirect sunlight or shaded areas. However, it's important to keep in mind that the amount of sunlight exposure a solar panel gets will impact how much electricity it produces.
This diffused light can be caused by clouds, reflection off surrounding surfaces, or the sun’s position in the sky throughout the day. While the output will be lower than in direct sunlight, it still contributes to your solar energy production. How much direct sunlight do solar panels need?
How much direct sunlight do solar panels need? Ideally, solar panels require at least 4 hours of direct sunlight daily for optimal performance. However, they can produce significant electricity even with less direct sunlight, especially if supplemented with indirect sunlight.
This is because photons, the component of the sun’s energy that solar panels use to generate electricity, exist in direct and indirect sunlight. Even though indirect sunlight (available during dawn and dusk hours) contains fewer photons than direct sunlight, solar panels can still be used for electricity generation.
That's thanks to the PV cells using photons from both direct sunlight as well indirect illumination. While your solar setup will still produce electricity without direct sunshine, you'll get more out of it when there's plenty of brilliant light.