An inverter is one of the most important pieces of equipment in a solar energy system. It's a device that converts direct current (DC) electricity, which is what a solar panel generates, to alternating current (AC) electricity, which the electrical grid uses. In DC, electricity is maintained at. A solar inverter or photovoltaic (PV) inverter is a type of power inverter which converts the variable direct current (DC) output of a photovoltaic solar panel into a utility frequency alternating current (AC) that can be fed into a commercial electrical grid or used by a local, off-grid electrical. Inverter Type Selection Dramatically Impacts ROI: Our 20-year analysis reveals that while microinverters cost $1,600 more upfront than string inverters, they deliver $2,100 additional net ROI in moderately shaded conditions through 12% higher energy production, making the premium investment. Solar panels, while important, are just one part of the solar array—the complete system that produces energy from sunlight. Another essential component is the inverter, and thanks to technological advancements, there are inverter options. Understanding the role of inverter in solar system design isn't just for engineers or solar installers.