Using a transformer in the inverter, the DC current received from the solar panels or the battery is transformed into AC current and transmitted to your electrical supply. Solar panels only generate DC electricity, and this is due to the way the panels work with the sun's rays and the photovoltaic cells in the panels. When. Besides converting DC to AC on your solar array, inverters also offer system monitoring, grid interface if you are grid-tied, power production, and safe system operation as well as maximum power output. See also: What Is A Solar Inverter? (Explained With. There are essentially three types of solar inverters available: string inverters, power optimizers, and micro-inverters.