If photosynthesis captures only 1-2% of the energy from sunlight, what happens to the other 98-99% of energy

It is used to produce carbohydrate molecules (Carbohydrates are molecular compounds made from just three elements: carbon, hydrogen and oxygen. Monosaccharides are relatively small molecules.). The energy from the light is shuttled from the light reaction to the dark reaction (Calvin Cycle). The energy goes into generating the intermediary ATP and another chemical called NADPH.