Solair World

Solar Inverter 101: Everything You Need to Know


A solar inverter is a critical component in a solar energy system that converts the direct current (DC) electricity generated by solar panels into alternating current (AC) electricity.

This conversion is essential because most homes and appliances run on AC power, not the DC power produced by solar panels.

Additionally, if you’re feeding electricity back into the grid, it must be in AC form.

Solar inverters also provide a number of safety and monitoring functions, such as ground fault protection and system stats visible to the homeowner.

How Does a Solar Inverter Works?

A solar inverter plays a vital role in your solar panel system by turning the DC (direct current) electricity from the solar panels into AC (alternating current) electricity that you can use in your home.

It’s important to understand how this works to fully benefit from your solar panels.

When sunlight hits your solar panels, it generates DC electricity.

But since your home and the wider electrical grid work on AC electricity, this DC electricity isn’t immediately usable.

That’s where the solar inverter comes in.

Its main job is to change the DC electricity into AC electricity, making sure it has the right voltage, frequency, and phase.

This makes the electricity from your solar panels suitable for running your household devices and allows any extra energy to be sent back into the grid.

However, solar inverters can fail due to various reasons.

They are complex electronic devices, and their functionality can be affected by factors like overheating, incorrect installation, component wear and tear, electrical surges, and software issues.

Solar Inverter Types

Solar inverters come in several types, each offering different advantages for specific applications:

String Inverters

The most common type for residential solar systems, string inverters connect to a ‘string’ of solar panels.

Generally, a single-string inverter is used per solar installation.

Each type of inverter has its unique set of features and is suited to different scales and configurations of solar power systems.


Small in size (about the size of a book), microinverters are used on a one-to-one basis with solar panels.

They are beneficial because they optimize each panel individually, which can result in more energy production, particularly in shady conditions.

Power Optimizers

These represent a middle ground in solar inverter technology, blending elements of both string inverters and microinverters.

They function alongside a central inverter, similar to a string inverter setup, but are installed adjacent to individual solar panels, akin to microinverters.

Central Inverters

These large units are used for very big solar systems that require hundreds of kilowatts or even megawatts.

Not suitable for home use, they look like big metal cabinets, each capable of handling around 500kW.

They’re typically found in commercial or utility-scale solar farms.

Hybrid Inverters

Hybrid solar inverters allow for battery integration in your solar system through DC coupling, managing both the charging and discharging of the battery.

Solar Inverter Benefits

Your solar PV inverter does more than just convert sunlight into usable electricity.

It’s a multifunctional device that plays several key roles in the efficiency and management of your solar power system.

Beyond the basic conversion of solar energy into alternating current (AC), a solar panel inverter helps to maximize the energy production from your solar panels.

It also offers system monitoring capabilities, allowing you to track and manage your solar panels’ output effectively.

Additionally, the inverter facilitates communication with the utility grid, which is crucial for systems that are grid-tied.

This feature is particularly important for managing net metering, where excess energy produced is sent back to the grid.

Moreover, solar inverters are equipped with fault-detection mechanisms.

These are essential for identifying and addressing issues that could potentially harm your solar power system, thereby enhancing its safety and longevity.

Overall, the solar inverter is a vital component that significantly enhances the functionality and productivity of your solar energy setup.

Solar Inverter Efficiency

The efficiency of a solar inverter is a critical aspect of its performance, as it determines how much of the solar energy can be converted into usable electricity.

During the conversion process from DC (direct current) to AC (alternating current), some energy is inevitably lost, primarily as heat.

The efficiency of an inverter is a measure of how effectively it can minimize these losses.

High-quality solar inverters tend to have higher efficiency rates, typically between 97% and 99%.

This means that only a small fraction of the energy is lost during conversion, ensuring that most of the solar power is utilized.

However, factors like shading on solar panels can affect the overall efficiency of your solar power system.

A good photovoltaic inverter not only converts energy efficiently but also helps in mitigating efficiency losses caused by such external factors.

This makes the choice of inverter crucial for optimizing the performance of your solar energy system.

Solar Inverter Lifespan

String inverters, a common component in solar energy systems, generally have a lifespan ranging from 10 to 15 years.

However, with optimal placement in cool, well-ventilated areas and proper maintenance, they can last up to 20 years.

Microinverters and power optimizers are newer additions to the solar industry, so there’s less historical data on their longevity.

Despite this, most manufacturers of these products offer 20- to 25-year warranties, indicating a strong confidence in their durability and suggesting that they can potentially exceed two decades of service life.

This longevity assurance is a key factor for many when selecting solar power components.

Useful Resources:

Solar Inverter Cost

The cost of a solar inverter varies significantly based on the design and requirements of each solar system, as well as the specific energy needs of your home.

This makes pinning down a single price point challenging.

For string inverters, the prices generally fall between $1,000 and $2,000, sometimes more.

This range is influenced by factors like the size of the system, the type of solar agreement, the seller, and any local-specific features.

Power optimizers are priced differently, typically ranging from $50 to $200 or more.

However, it’s important to remember that you need one power optimizer per solar panel, and you’ll also require an inverter to connect them.

Microinverters tend to be more costly than string inverters.

For a system of comparable size, you might pay over $1,000 more for microinverters than for a string inverter.

Additionally, while scaling up a string inverter system incurs a lower incremental cost (meaning doubling the size won’t necessarily double the price), microinverters need to be installed on each panel.

Consequently, doubling your number of panels will likely double the cost of microinverters.

Remember, solar installers often buy in bulk and have direct relationships with suppliers, so their pricing might differ from what you’d find in a retail setting.

Solar Inverter Grounding

Grounding generally refers to the practice of connecting the electrical system to the earth. This is a safety measure that provides a path for electrical current to be safely dissipated into the earth in case of a fault, such as a short circuit or lightning strike. Grounding helps protect the system and its users from electric shocks and reduces the risk of fire.

Negative Grounding, on the other hand, is a more specific term that refers to the practice of connecting the negative side of an electrical circuit or system to the ground. In solar power systems, including solar inverters, negative grounding means connecting the negative pole of the solar array to the ground.

Useful Resources:


How to Choose a Solar Inverter?

When deciding how to choose the best solar inverter for your home, there are several key factors to consider, especially if you want your solar panel system to be a worthwhile investment.

Choosing efficient components at a reasonable price is essential.

Microinverter systems are typically the priciest among inverter types.

However, they offer longer lifespans and generally more reliable performance compared to string inverters.

You can expect warranties and lifespans for microinverters to range from 15 to 25 years, while string inverters usually come with an average warranty of about 10 years.

The efficiency of your solar system largely depends on the specific conditions of your property, such as panel placement and the pattern of shade over the area.

In general, if your solar panels are unshaded and situated on a single plane, a string inverter is likely the most efficient choice.

In contrast, if your setup involves shaded areas or the panels are spread out, microinverters or optimizer systems might be more suitable.

To make the best decision for your circumstances, it’s advisable to consult with a reputable solar installation company.

Their expertise can provide valuable guidance tailored to your unique situation, ensuring you choose the most efficient and cost-effective system for your home.

What Size Solar Inverter Do I Need?

Selecting the appropriate size for your solar inverter is a critical step in setting up a solar energy system.

Choosing an inverter that’s too small can lead to inefficiencies, potentially increasing your electricity bills and risking damage to your system.

A key rule to follow is to choose an inverter with a capacity that exceeds the total capacity of your solar panels.

This is because inverters lose some efficiency in the process of converting DC (direct current) to AC (alternating current) electricity.

As a result, they produce slightly less AC power than their maximum rating.

Additionally, it’s important to consider the power consumption patterns and peak power demands of your household.

If your home frequently uses high-energy appliances like air conditioners or electric heaters, you’ll need an inverter that can handle these peak loads comfortably without overburdening.

This ensures your solar energy system operates efficiently and can cope with your energy demands.