Solid oxide fuel cells (SOFCs) are recognized as a clean energy source that, unlike internal combustion engines, produces no CO2 during operation when H2 is used as a fuel. They use a highly efficient chemical-to-electrical energy conversion process to convert oxygen and hydrogen into electricity and water. They can provide smaller-scale power for transportation (e.g., cars, buses, and ships) and be scaled up to provide long-term energy for an electrical grid, making SOFCs a promising, clean alternative to hydrocarbon combustion. Conventional SOFCs faced challenges of high operating temperatures, high cost, and poor durability. Research into advanced cathode, anode, electrolyte, and interconnect materials is providing more insight into the ideal structural and chemical properties that enable the commercialization of highly stable and efficient intermediate temperature (IT) SOFCs. In this paper, we discuss the functional properties of the cathode, anode, electrolyte, and interconnectors for IT-SOFCs. The performance of SOFCs depends not only on the materials used but also on the optimization of operating conditions to maximize efficiency. The voltaic, thermodynamic, and fuel efficiency of SOFCs is presented.