Solar Inverters: Types, Pros and Cons

14 Jul.,2025

 

Solar Inverters: Types, Pros and Cons

What is a solar inverter?

Solar energy doesn’t provide electricity in a format that your table lamp could be powered by. Inverters change the power produced by your solar panels into something you can actually use.

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Think of it as a currency exchange for your power. You might have a fistful of yen, but until you stop and exchange it for USD, you can’t pay for lunch stateside.

Your home is wired to conduct alternating current (AC) power. The electricity produced by solar panels is initially a direct current (DC). Inverters change the raw DC power into AC power so your lamp can use it to light up the room.

Inverters are incredibly important pieces of equipment in a rooftop solar system. There are three options available: string inverters, microinverters, and power optimizers.

Did you know? With the “One Big Beautiful Bill” signed into law, the 30% tax credit for residential solar is going away at the end of . Homeowners will need to get their systems installed by December 31, to qualify for this credit before it is gone. Start your project with multiple quotes from trusted local installers today.

See our list of the best inverters of .

Solar Inverter Types, Pros and Cons

String Inverters

String inverters have one centralized inverter — or, keeping with the metaphor — one central currency exchange station.

This is a standard inverter, and it works just fine if you don’t have any encroaching shade from nearby trees or a big chimney. It’s also great if you have all of your solar panels facing the same direction.

String inverters are standard in the industry, and they’re the least expensive.

String inverter pros:

  • Lowest cost
  • Standard inverter
  • Performs well with no shade

String inverter cons:

  • Overall production decreases if one panel is damaged or shaded
  • No ability to monitor each panel individually
  • Not optimal if your solar panels are facing different ways
  • Increasing power needs are more difficult and may require second central inverter installation

Microinverters

Microinverters are small units built into each individual solar panel that convert power. Think of it as having mini currency exchange stations on every nearby street corner.

This gives each panel the ability to function at peak performance, independent from its neighbors. Even if the panel next to it has a tree branch shading it for most of the day, all the other panels can convert at full capacity. Any drop in efficiency only affects one panel.

Microinverters also enable you to monitor the performance of each individual panel. This is helpful for spotting any issues with a single panel so you can have it repaired before it slows down the whole system’s productivity.

This type of inverter can be more expensive than string inverters, but it can pay off over time by getting more power from your system overall.

Microinverters also make it easy to increase power usage if you want to. Say you buy an electric car and you’ll need more power to charge it every night. Adding more solar panels and inverters is easier and less expensive than adding an additional central inverter for a string inverter system.

Read more about string inverters vs microinverters here.

Microinverter pros:

  • Shade from a nearby tree won’t reduce the whole solar panel system power output
  • Individual panel monitoring available
  • Increasing power needs are easier and less expensive than installing a second central inverter
  • Good for rooftops where solar panels may face different directions

Microinverter cons:

  • Higher initial cost
  • Not necessary if all panels face the same way and are not shaded

Power Optimizers

Power optimizers are somewhere in between string inverters and micro-inverters both in how they function and in price.

As with micro-inverters, power optimizers have a component (the “optimizer”) underneath and within each solar panel. But rather than change the DC to AC right there on site, these inverters optimize the current before sending it to one central inverter.

This is more efficient than a string inverter, as any sluggish production from one panel doesn’t slow the whole system, but more cost-efficient than a standard micro-inverter setup.

Imagine being able to cut to the front of the line at the currency exchange office. It’s not quite as quick or convenient as having your own exchange office a few steps from your home, but there’s no waiting around once you get to the central office.

Micro-inverters and power optimizers are gaining popularity and prices are dropping as the technology advances.

We have more details on power optimizers in this post.

Power optimizer pros:

  • More efficient than string inverters
  • Less expensive than micro-inverters
  • Individual panel monitoring available

Power optimizer cons:

  • Higher initial cost
  • Not necessary if all panels face the same way and are not shaded

Ultimately, best inverter for you depends on your roof shape and size, nearby trees, how much energy you need, and your budget.

What to Look for in a Solar Inverter

To recap, there are three kinds of inverters: string inverters, microinverters, and power optimizers.

They all transform the power your solar panels generate from direct current (DC) to alternating current (AC). This makes the energy usable for your home.

Here’s a few things to look for when shopping for inverters…

Solar Inverter Warranties

Most people feel more comfortable purchasing electronic devices with warranties. Solar inverters are no exception. Most inverters have warranties ranging from anywhere between 5 and 10 years, though some can be extended to 25 years.

When you’re looking at a company, make sure you know what’s included in the warranty and what’s not. For example, some power optimizers might not include the central inverter under the warranty.

Also make sure you understand the terms of a warranty. Is the device covered in case of an internal glitch as well as in the case of external damage? Will you be charged for labor or shipping if you have to send parts in? These are all important questions to ask.

Solar Inverter Operating Temperatures

As with most electronic equipment, inverters operate best when they’re running cool. Operating temperature is the safest temperature range an inverter maintains.

For more information, please visit residential inverter.

Inverters will naturally generate some heat themselves as they do their job. Since they’re typically in an uncontrollable environment outdoors, they’re exposed to a wide range of temperature fluctuations.

Obviously, conditions aren’t always ideal and some times an inverter will have to work harder than others. The higher the operating temperature (the more heat it can handle), the better.

Solar Inverter Efficiency

There are two numbers to look for in solar inverter efficiency: peak efficiency and weighted efficiency.

Peak efficiency will give you the efficiency of your inverter when it’s running optimally. It’s good to know what the best-case scenario is, but it’s also worth noting that it won’t always be hitting that level. Some days it might only reach peak efficiency for an hour or two, or maybe not at all.

Weighted efficiency figures in the variables like DC input levels. This gives a more accurate gauge as sunshine, temperature, and other environmental elements affect inverter efficiency throughout the day.

Solar Inverter Key Terms to Know

Clipping/Scalping

This is the term used to describe the energy output that is lost due to undersizing an inverter.

Any given inverter has a maximum power rating (at the residential level, measured in W or kW). When solar supplies DC power in excess of that inverter’s maximum power rating (what the inverter can handle), the resulting power is “clipped.” Think of it like a 14 foot tall truck trying to go under a 13 foot bridge — a little comes off the top.

It’s important to consider the solar panel arrays’ maximum power output and select an inverter with the correct size, model, and type in order to avoid excessive clipping.

It’s normal for the DC system size to be about 1.2x greater than the inverter system’s max AC power rating. For example, a 12 kW solar PV array paired with a 10 kW inverter is said to have a DC:AC ratio — or “Inverter Load Ratio” — of 1.2.

When you into account real-world, site-specific conditions that affect power output, it may make sense to size the solar array a bit larger than the inverter’s max power rating, as there may be very few “power-limiting days,” or instances of clipping for that system.

Inverter Efficiency

Inverter efficiency is a percentage that tells us how much DC power input to an inverter comes out as usable AC power.

No inverter is 100% efficient, although some come close in favorable conditions. In the conversion from DC to AC, power is lost in the form of heat.

While inverter efficiency is an important factor to consider in the selection process, there are other factors to consider that also affect a project’s economics, such as warranty, price, expected life, serviceability, and monitoring functions.

Maximum Power

Maximum power is the highest amount of power allowed to feed into an inverter, which is a function of the inverter’s specifications or the maximum power a solar panel can produce. This will occur at the optimal trade-off between voltage and current along a given panel’s I-V (current and voltage) curve.

Maximum Power Point (MPP)

A solar system’s maximum power output will vary with conditions, such as how much sunlight it receives, temperature, and other factors. A fixed-tilt, stationary, roof or ground-mounted solar PV system might only produce its maximum rated power during a limited period of the day. Every specific solar cell has its own unique I-V curve, which relates its maximum power output to variations in current (I) and voltage (V).

Maximum Power Point Tracker (MPPT)

A device that periodically tracks characteristics of a given panel, string of panels, or system, and optimizes and varies voltage and amperage accordingly in order to produce maximum power.

Microinverter

A device that converts direct current (DC) produced by a single solar panel into alternating current (AC).

Micro-inverters are commonly connected to and installed at the site of, or behind, each individual solar panel in an array. Most micro-inverter makes are installed in the field, while some come panel-integrated by the manufacturer.

Popular brands of micro-inverters include: Enphase, Chilicon, APS, ABB, SMA, and SunPower.

Optimizer

A DC-DC converter, optimizer, or “panel optimizer,” is a module-level power electronic device that increases the solar system’s energy output by constantly measuring the MPPT of each individual panel.

The panel optimizers relay performance characteristics via a monitoring system to facilitate operations and any necessary maintenance. In essence, optimizers support flexible system designs and arrangements – with multiple panel orientations, tilts, azimuths, and module types in a given string.

Because optimizers are a DC-DC, or DC-coupled, systems using this technology will generally be compatible with DC-coupled energy storage or battery backup solutions, like the Tesla Powerwall.

Perhaps the most advantageous benefit of using a DC optimizer is panel-level MPPT, or max-power point tracking. The result is increased energy harvest from a panel system, especially when subject to periodic or sweeping shade.

Peak Power Point

Another term for Maximum Power Point (MPP).

String Inverter

The device that converts direct current (DC) electricity produced by groups of solar panels (called strings), into usable alternating current (AC) electricity.

String inverters are considered a “mature” solar technology that has proved effective, safe, and reliable. Residential, 240V AC string inverters usually carry manufacturers’ warranties of about 10 years.

When installed to a manufacturer’s specifications, code, and best practices, a string inverter may require service or ultimately replacement during a photovoltaic system’s lifespan.

What are the Advantages of Power Inverter?

In today's fast-paced and technology-driven world, power inverters have become indispensable devices that play a pivotal role in converting direct current (DC) into alternating current (AC). This conversion allows for the utilization of electrical appliances and devices that run on AC power through a DC power source, such as batteries or solar panels. The advantages of power inverters are numerous, ranging from portability to energy efficiency. In this article, we will delve into the various advantages that power inverters offer.

  • Versatility and Portability. One of the key advantages of power inverters lies in their versatility and portability. These devices come in various sizes and types, ranging from small, compact inverters for personal use to larger, industrial-grade models. This versatility allows users to choose a power inverter that best suits their specific needs, whether it's for powering electronic gadgets during outdoor activities or ensuring a stable power supply for critical equipment in remote locations. The portability of smaller inverters further enhances their usability, making them ideal for camping, road trips, and emergency situations.
  • Emergency Power Backup. In times of power outages or natural disasters, power inverters prove to be invaluable assets. They enable homeowners to continue using essential appliances, such as lights, refrigerators, and communication devices, by drawing power from backup battery systems. This ensures uninterrupted access to electricity, which can be crucial for maintaining communication, preserving perishable items, and ensuring the safety and comfort of occupants during emergencies.
  • Renewable Energy Integration. With the growing emphasis on renewable energy sources, power inverters have become essential components in solar and wind energy systems. Solar panels generate DC electricity, which must be converted into AC to be used in homes and businesses. Power inverters facilitate this conversion, enabling the efficient utilization of solar energy for various purposes. Additionally, some advanced inverters offer features like grid-tie functionality, allowing excess energy generated by solar panels to be fed back into the grid, potentially leading to energy savings and even financial benefits through net metering.
  • Efficient Energy Conversion. Modern power inverters are designed with advanced technology that ensures high levels of energy efficiency during the conversion process. This efficiency translates to minimal energy wastage, making them environmentally friendly and cost-effective solutions. In comparison to traditional methods of power generation, power inverters contribute to reduced greenhouse gas emissions and lower energy bills, making them an attractive choice for both residential and commercial applications.
  • Noise Reduction. Certain appliances and devices, such as refrigerators and air conditioners, can generate noise when running on AC power. Power inverters can help mitigate this issue by providing a smooth and consistent source of power. When these appliances are powered by inverters, the resulting AC output is often cleaner and less prone to fluctuations, leading to quieter operation and improved user experience.
  • Remote Power Generation. Power inverters find great utility in remote and off-grid locations where access to a stable power grid is limited or nonexistent. These areas might include remote research stations, construction sites, and rural communities. By harnessing DC power sources, such as batteries or generators, power inverters make it possible to establish functional electrical systems in places that would otherwise be without reliable power.

In conclusion, power inverters have revolutionized the way we access and utilize electrical power. Their versatility, portability, and efficiency make them indispensable tools in various scenarios, from emergency power backup to renewable energy integration. As technology continues to evolve, power inverters are likely to become even more advanced and tailored to specific applications, further expanding their range of advantages and benefits. Whether it's enhancing energy efficiency or providing a lifeline during critical situations, power inverters have undoubtedly become a driving force in shaping our modern electrical landscape.

Are you interested in learning more about commercial inverters? Contact us today to secure an expert consultation!