What Is A Solar Inverter, and How Does It Work?

Solar tech is getting smarter, but the terms don’t need to throw you off. We’ve got you. Let’s break it down together. 

One of the most important parts of your solar setup? The solar inverter. It’s like your system’s translator—making sunshine usable inside your home.

What is a solar inverter?

A solar inverter is a device that converts the direct current (DC) electricity generated by solar panels into alternating current (AC) electricity, which is the type used by most home appliances and the electrical grid. If solar panels are the heart of your system, inverters are the brain. Your solar panels generate direct current (DC) electricity when sunlight hits them, but your home runs on alternating current (AC) electricity—the standard 120 or 240-volt power that flows through your outlets.

A solar inverter bridges this gap by converting the DC electricity from your panels into AC electricity that your appliances can use.¹ Without this conversion, your solar panels' energy would be incompatible with everything from your refrigerator to your phone charger.

Here's how it works: The inverter uses transistors that rapidly switch on and off, transforming the steady DC into alternating AC. This process happens thousands of times per second, creating the alternating electrical flow your home needs.

Modern inverters do more than just convert power—they also enable solar power system monitoring. At Sunrun, we use advanced monitoring technology that tracks your system's performance 24/7, ensuring your panels produce at least 80-90% of their estimated output when you choose our subscription plan.

Why AC instead of DC?

You might wonder why homes use AC power. The simple answer is that AC travels long distances better and plays nicely with different voltages. That’s why it's the go-to for homes and businesses.

When sunlight hits your solar panels, it creates DC electricity that needs to be converted. Your inverter then converts this DC power into the AC electricity that seamlessly integrates with your home's electrical system and the utility grid. Many systems use string inverters to handle this job efficiently in one central location.

How you can save with inverters

Want to save more with solar? It starts with your inverter. The better it converts DC to AC power, the less energy is wasted, and the more you keep.

Here's some cool progress: In 1956, solar systems were only 6% efficient and cost around $300 per watt. Today's solar systems operate up to 25% efficiency² and cost as little as $3 per watt³. This dramatic improvement in efficiency and cost reduction demonstrates how advanced inverter technology helps maximize your solar investment.

Basically, the better your inverter works, the more clean energy your home’s panels can produce daily. solar panels.

Types of solar inverters

Not all inverters are one-size-fits-all. Here’s your neighborly guide to finding the one that fits your home just right.

String inverters

String inverters are the tried-and-true choice for many homes. They link multiple panels into one ‘string’ that connects to a single inverter. They are simple, solid, and reliable.

Here’s the catch—shade on one panel can drag the whole string down. But pair it with power optimizers, and boom: more electricity and better performance.

Microinverters

Microinverters are the solo artists. They are small units installed on the back of each individual solar panel. This setup allows each panel to operate independently, so shading on one panel won't impact the others.

This distributed approach also enhances safety for installers and maintenance crews by reducing the system's DC voltage levels.

Power optimizers

Power optimizers bring the best of both worlds, combining the benefits of both string inverters and microinverters. Like microinverters, optimizers attach to individual panels, but instead of converting DC to AC, they "condition" the DC power before sending it to a central string inverter.

This solar panel system provides panel-level monitoring and optimization while maintaining the cost-effectiveness of a central inverter. You get better performance than traditional string inverters with the ability to identify and address issues at the individual panel level.

Central inverters

Central inverters are the big guys. Perfect for commercial setups, they handle lots of panels connected through combiner boxes—not something most homes need.

Grid-tie inverters

A grid-tie inverter connects your solar system to the utility grid, allowing you to use solar power directly and send excess electricity—especially from multiple solar panels—back to the power grid for credit on your utility bill (in a net metering jurisdiction). But heads-up: they go offline during power outages for safety.

Hybrid inverters

Hybrid inverters handle it all. Your solar panels, home needs, the grid, and your backup battery. They give you energy options, even when the power goes out.

The bottom line

Solar power inverters are crucial in converting your roof's solar potential into real energy savings. With the right inverter technology and professional installation, you can maximize your solar system's performance and potential long-term savings.

Ready to harness the power of advanced solar technology? Get a free quote from Sunrun today and discover how our expert team can design the perfect solar energy system for your home, complete with cutting-edge inverter technology and comprehensive monitoring.

Want to learn more about solar technology? Explore the Sunrun Blog for more insights into how solar can power your home and potentially reduce your energy costs.

^Sources:

^{1. https://www.ecomena.org/guide-solar-inverters/}

^{2. https://www.eia.gov/energyexplained/solar/photovoltaics-and-electricity.php}

^{3. https://www.energy.gov/eere/solar/solar-photovoltaic-system-cost-benchmarks}