What Is a Solar Inverter?

Oct 29, 2025

You have an inverter system already placed in your house, but installing a solar system requires an additional inverter. Is the recommendation leaving you confused? We will sort it for you. 

Regular inverter: It converts DC electricity into AC power

Solar inverter: It performs the same function, but specifically for energy generated from solar panels. 

Unlike regular inverters, solar ones also manage solar energy flow, optimise power generation, and synchronise with the utility grid. These inverters ensure your home appliances receive clean electricity while offering other benefits. 

So, let’s break down what a solar inverter is and why it is essential for every solar setup. 

What is Solar Inverter? 

An inverter is the device that transforms DC electricity into AC to convert it into a usable form. A solar inverter is a device that is an important part of the solar power system. It converts the energy produced from solar panels, which is in DC form, to AC form to power the household appliances. 

The solar inverter is designed to handle the variable Direct Current (DC) electricity from solar panels. It also possesses smart features like grid-tie capability, which enables it to supply energy to the grid. 

How Solar Inverter Works? 

As mentioned, solar panels convert the electricity into a usable form for powering the household appliances. Here are the stepwise insights into how it works: 

Step 1: Sunlight strikes the solar panels 

The sunlight hits the photovoltaic (PV) modules in the solar panel. They absorb the sunlight and release electrons, generating Direct Current (DC) electricity. 

Step 2: DC electricity is stored  

The DC power produced by the panels is routed through connecting cables. It is either stored in the battery or transported to the solar inverter. At this stage, the energy is still not usable for standard appliances since most electrical systems operate on Alternating Current (AC). 

Step 3: Conversion from DC to AC 

The inverter comprises the right equipment (transformer) that converts the electricity into an AC waveform. The newly converted electricity can now be safely supplied to the household appliances. 

Note: Depending on the features of the solar inverter you have, it can also perform Maximum Power Point Tracking (MPPT). This intelligent function evaluates voltage and current from the panels and continuously adjusts them to extract the maximum possible power when sunlight intensity changes. 

Types of Solar Inverter

Now, let’s get into the details of the variety of solar inverters. These are described below: 

Off-Grid Solar Inverters 

These are also referred to as stand-alone inverters and are designed for systems that operate independently of the utility grid. Instead of drawing power directly from solar panels, they take DC electricity from batteries that are charged through PV arrays. 

They also take electricity from alternative sources such as generators, hydro systems, or wind turbines. These inverters do not require anti-islanding protection and cannot export excess electricity. 

When to choose? 

The off-grid solar inverters are well-suited for use in remote locations or by users who prefer complete energy independence. 

Grid-Interactive Solar Inverters 

These inverters work in sync with the utility grid by matching the grid’s voltage, frequency, and waveform. They automatically shut down during the power outage to prevent back-feeding into the grid. The grid-connected systems may use different configurations depending on system size and design. The types include: 

  • Central inverters: These are extremely large inverters used for commercial purposes such as utility-scale solar farms or large-scale installations. These are suited for systems requiring hundreds of kilowatts of volume. 
  • String inverters: These are the oldest form and are commonly used inverters, finding applications in residential and business use. They are named so due to the presence of a string of solar panels attached to them. 
  • Microgrid inverters: These are small-sized inverters that can be installed at the back of panels. They can optimise individual solar panels, making them a beneficial addition in shady conditions. 

Is it for you? 

These inverters are ideal for homes and businesses that want to supply power to the grid. 

Hybrid Solar Inverters 

These inverters combine the capabilities of off-grid and grid-tied systems. They are designed to manage battery charging, supply power to the home, and export surplus energy to the grid. 

They prioritise charging the battery during the day and then feed excess power outward. During night or low solar days, the stored energy is used before switching to grid support. The hybrid inverters sync with the grid and hence require anti-islanding protection. 

Should you go with this option?

These are preferred by residential and business owners who want energy independence while maximising their solar energy use and savings. 

Benefits of Solar Inverter 

There are numerous benefits of solar inverters, such as: 

Financial Benefits 

  • Reduces electricity bills: It helps generate one’s own electricity, which lowers dependence on the grid. It also significantly reduces monthly power costs. 
  • Offers energy credit: Choosing the grid-tied systems allows exporting surplus energy back to the grid. It helps earn credits that further reduce power costs. 

Energy Reliability and Performance

  • Acts as a reliable power backup: It allows it to benefit from uninterrupted operations during power outages. It is highly useful for continuous energy requirements. 
  • Low maintenance: These devices come along with minimal maintenance requirements, easing their incorporation into busy lives. 

Environmental Benefits 

  • Lowers carbon footprint: The use of solar energy reduces dependence on fossil fuels, thus contributing to a greener Earth. 
  • Supports long-term sustainability goals: Generation of clean and renewable power helps households and businesses contribute to national and global clean-energy targets. 

Installation Advantage

  • Small design: The solar inverters are designed to take up less space, making them suitable for indoor storage. It offers protection from environmental damage. 
  • Easy integration: Modern solar inverters can be easily added to existing solar panels without extensive rewiring. 

Conclusion 

A solar inverter is an essential component of a solar panel system that determines how efficiently the entire solar system performs. These inverters perform the basic function of converting DC electricity into a usable form, i.e., AC electricity. 

The solar inverters come in different varieties that can be chosen depending on specific needs. The choice of the right solar inverter allows you to benefit from lower electricity bills, reliable backup power, better system efficiency, and long-term sustainability. 

If you are considering a solar inverter for your place, we can help you out. Connect with us to get a resolution of your queries or to explore the available options. Simply want to click and check the solar inverter from Livfast? Here you go: Solar PCU LFS SO5000.

FAQ's

What are the components of a solar power system?

The important components of a solar power system include: 

  • Core energy components: Solar panels and battery storage 
  • Inverter system components: Power inverter unit, cooling fan, protective circuits, and monitoring system 
  • Supporting system components: Charge controller and switches, and wiring

Clipping, scalping, or inverter saturation in a solar inverter occurs when the solar panels generate more power than the inverter’s maximum capacity. Since the inverter cannot process the excess energy, it ‘clips’ the output to its rated limit. Thus, it prevents it from being converted into usable electricity.

The key factors to select a solar inverter include: 

  • Compatibility with the size, power capacity, voltage, and current of the solar panels 
  • Type of the inverter depending on specific needs 
  • Efficiency of the solar inverter 
  • Presence of the advanced Maximum Power Point Tracking (MPPT) feature 
  • Smart features like monitoring and others