What is a Solar Inverter and How Does it Work? - Fallon Solutions

30 Jun.,2025

 

What is a Solar Inverter and How Does it Work? - Fallon Solutions

Understanding Solar Systems:

With the increased interest in renewable energy sources across the globe, the interest in solar systems has also shot up at amazing rates. The ability of the sun to power an entire home is a huge environmental plus (think of all the electricity saved!) and is a great use of a resource that we have many hours of each and every week.

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But, when it comes to solar systems, do you actually know what they are made up of and how they work? Solar systems consist of solar panels, (or photovoltaic (PV) panels), a solar inverter (super important) and a rack to keep everything in place. They may also contain a battery, depending on the system and an electric meter, and the amount and type of panels for each system will depend on the energy output needed. Considering how important and beneficial solar systems are, we thought we would put together a little information regarding solar inverters, how they work and what to look for in a good solar inverter, given their importance.

How Does a Solar Inverter Work?

A solar inverter works by taking in the variable direct current, or ‘DC’ output, from your solar panels and transforming it into alternating 120V/240V current, or ‘AC’ output. The appliances in your home run on AC, not DC, which is why the solar inverter must change the DC output that is collected by your solar panels.

To be a little more technical, the sun shines down on your solar panels (or photovoltaic (PV) cells), which are made of semiconductor layers of crystalline silicon or gallium arsenide. These layers are a combo of both positive and negative layers, which are connected by a junction. When the sun shines, the semiconductor layers absorb the light and send the energy to the PV cell. This energy runs around and bumps electrons lose, and they move between the positive and negative layers, producing an electric current known as direct current (DC). Once this energy is produced, it is either stored in a battery for later use or sent directly to an inverter (this depends on the type of system you have).

When the energy gets sent to the inverter, it is in DC format but your home requires AC. The inverter grabs the energy and runs it through a transformer, which then spits out an AC output. The inverter, in essence, ‘tricks’ the transformer into thinking that the DC is actually AC, by forcing it to act in a way like AC – the inverter runs the DC through two or more transistors that turn on and off super fast and feed two varying sides of the transformer.

Types of Solar Inverters

Now you know what a solar inverter is and how it works, it’s time to look at the different types of inverters. There are 5 different kinds of solar inverters, all with varying benefits :

  • Battery Inverters

A battery inverter is the best option if you are needing to retrospectively fit a battery into your solar system, or are wanting to keep your battery separate from your solar panels and run through a different inverter. A battery inverter converts your battery power into 230V AC and feeds it into your switchboard (instead of grid power) wherever possible.

  • Central Inverters

A central inverter is huge and is used for systems requiring hundreds of kilowatts (or even sometimes megawatts) of volume. They aren’t for residential use and resemble a large metal cabinet, with each ‘cabinet’ being able to handle around 500kW of power. They are generally used commercially for large-scale installations, or for utility-scale solar farms.

  • Hybrid Inverters

Hybrid inverters, otherwise known as ‘multi-mode inverters’, are pretty uncommon in Australia and allow you to connect batteries to your solar system. It engages with the connected batteries through ‘DC coupling’ (when both the solar and batteries use one inverter and the DC from the solar panels charges the batteries via a DC charger) and its electronics organise the charging and discharging of the battery.

  • Microinverters

As their name suggests, microinverters are super small (the size of a book!) and the ratio of solar panels to microinverters is 1:1. The benefit of a microinverter, among others, is that they optimise each solar panel individually, which offers more energy (especially in shady conditions).

  • String inverters

Last but not least, there are string inverters. String inverters are the most common inverter option for residential use, and there is usually 1 string inverter per solar installation. They are known as ‘string inverters’ due to the fact that a string of solar panels is connected to them.

The Ultimate Guide to Solar Inverters: How They Work

In the realm of solar energy systems, where solar panels act as the muscle, the solar inverter serves as the brain that orchestrates the conversion of sunlight into usable electricity. While solar panels are commonly known, it's the solar inverter that truly powers your home's energy efficiency. In this comprehensive guide, our team at SolarME will dissect the role of a solar inverter and uncover its intricate workings and indispensable significance.

From understanding the fundamentals of solar inverters to exploring the best inverters for solar panels, we'll navigate through the complexities, ensuring clarity on topics like "what is a solar inverter and how does it work" and the importance of a home inverter system.

Whether you're a solar enthusiast or a newcomer to renewable energy, this guide will give you the knowledge you need to make informed decisions about your solar power journey.

What Is a Solar Inverter?

A solar rooftop inverter acts as the pivotal link between your solar panels and household appliances, facilitating the transformation of direct current (DC) produced by the panels into the alternating current (AC) needed to power your home. Picture it as a vital translator that converts the raw energy from the sun into a usable form. Just as you exchange currency for practical transactions, the inverter ensures that the electricity generated by your solar array is compatible with your home's electrical infrastructure.

In essence, it bridges the gap between the DC power generated by solar panels and the AC power needed by typical household devices. This conversion process is essential for seamless integration with your home's existing wiring and ensures that you can harness solar energy to power your lights, appliances, and electronics effectively.

Whether it's a string inverter, a microinverter, or a power optimizer, the solar rooftop inverter plays an important role in maximizing the efficiency and usability of your solar power system.

How Does a Solar Power Inverter Work?

The functionality of a solar power inverter is pivotal in bridging the gap between the direct current (DC) electricity generated by solar panels and the alternating current (AC) required to power household appliances. Acting as a vital intermediary, the solar inverter converts the DC electricity from the solar panels into usable AC electricity, ensuring compatibility with standard home wiring systems.

This transformation process is facilitated by sophisticated technology, such as Insulated Gate Bipolar Transistors (IGBTs) arranged in an H-bridge configuration, which oscillate the current from DC to AC. Additionally, a step-up transformer may be used to elevate the voltage of the generated power for efficient transmission to the grid. Advanced inverters, equipped with pre-programmed microcontrollers and Maximum Power Point Tracking (MPPT) algorithms, optimize power output from the solar panels while efficiently managing energy flow to batteries and the utility grid.

Operating seamlessly throughout the day, solar inverters ensure a continuous supply of electricity, even during power outages, by intelligently managing energy storage and distribution. This is how a solar power inverter works, ensuring the effective utilization of solar energy for powering homes and businesses.

What Are the Different Types of Inverters for Solar Panels and What Are Their Pros and Cons?

When considering different types of solar inverters, three main categories emerge: on-grid, off-grid, and hybrid inverters. Each type serves distinct purposes and comes with its own set of features and functionalities.

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On-Grid Solar Inverters

On-grid solar inverters are designed for systems connected to the grid and efficiently convert DC power from solar panels into usable AC power for household consumption. These inverters often feature Anti Islanding Protection to ensure safety and can feed excess electricity back into the grid. Within this category, there are further distinctions such as string inverters, microinverters, and power optimizers.

String inverters connect multiple solar panels to a single inverter, while microinverters are installed on each panel to optimize performance independently. Power optimizers, on the other hand, condition the DC electricity generated by each solar panel before sending it to a central inverter to reduce the impact of shading and increase overall system efficiency.

Pros of On-Grid Solar Inverters:

  • Efficient conversion of DC power to usable AC power for household consumption.
  • Enhanced safety features such as Anti-Islanding Protection.
  • Ability to feed excess electricity back into the grid for potential cost savings through net metering or feed-in tariffs.

Cons of On-Grid Solar Inverters:

  • Reliance on grid connectivity, limiting power supply during grid outages without battery storage.
  • Vulnerability to fluctuations in grid voltage or frequency, impacting overall system efficiency.
  • Limited suitability for off-grid applications where grid connection is unavailable or unreliable.

Off-Grid Solar Inverters

Off-grid solar inverters are essential components of standalone solar power systems. They draw stored energy from battery banks during periods of low sunlight or power outages and convert it into AC power for household use. These inverters offer autonomy from the grid but need careful planning and sizing of battery storage.

Within this category, there are two varieties: pure sine wave inverters and modified inverters. Pure sine wave inverters generate smoother, interference-free electricity suitable for powering sensitive electronics, while modified inverters produce a stepped waveform that may be sufficient for basic appliances but less ideal for delicate equipment.

Pros of Off-Grid Solar Inverters:

  • Provide autonomy from the grid and ensure uninterrupted power supply even in remote locations.
  • Enable storage of excess energy in battery banks for use during periods of low sunlight or grid outages.
  • Offer flexibility in system design and sizing, allowing customization based on energy needs and available sunlight.

Cons of Off-Grid Solar Inverters:

  • Require careful planning and sizing of battery storage, adding complexity and cost to the system.
  • Limited by the capacity of battery banks, which may necessitate conservative energy usage during extended periods of low sunlight.
  • May not be suitable for powering sensitive electronics due to the stepped waveform produced by modified inverters, impacting device performance and longevity.

Hybrid Solar Inverters

Hybrid solar inverters combine features of both on-grid and off-grid systems, providing flexibility and versatility. These inverters can intelligently manage power from solar panels, the utility grid, and battery storage, ensuring uninterrupted power supply and maximizing energy efficiency. Many hybrid inverters are highly programmable, allowing users to select optimal periods for using power from different sources.

They’re particularly effective for systems requiring secondary battery storage, such as the Tesla Powerwall, and are suitable for off-grid applications or areas with unreliable grid connectivity. Hybrid inverters offer a comprehensive solution for maximizing the effectiveness of solar power systems and meeting energy needs efficiently.

Pros of Hybrid Solar Inverters:

  • Combine features of both on-grid and off-grid systems, providing versatility and adaptability to varying energy needs.
  • Intelligently manage power from multiple sources, including solar panels, the utility grid, and battery storage, optimizing energy usage and reducing reliance on the grid.
  • Highly programmable, allowing users to customize energy usage based on preferences and environmental conditions, maximizing efficiency and cost savings.

Cons of Hybrid Solar Inverters:

  • Higher initial cost compared to traditional on-grid or off-grid inverters due to additional features and functionality.
  • Complexity in installation and setup, requiring specialized knowledge and expertise, which may increase installation costs.
  • Reliability may be dependent on the integration of multiple components, potentially leading to increased maintenance requirements over time.

What Factors Should I Consider While Choosing a Solar Inverter?

Choosing the right inverter for solar panels is an important step that requires careful consideration. Key factors to consider include solar inverter efficiency, size, cost, and lifespan.

Solar Inverter Efficiency

Solar inverter efficiency is typically measured by two key metrics: peak efficiency and weighted efficiency. Peak efficiency indicates the highest level of efficiency achievable by the inverter under ideal conditions. While this metric provides insight into the inverter's optimal performance, it's important to note that real-world conditions may vary, and the inverter may not consistently operate at peak efficiency.

Weighted efficiency, on the other hand, takes into account various factors such as DC input levels, sunlight intensity, temperature, and other environmental variables that can impact inverter performance throughout the day. Weighted efficiency provides a more accurate representation of the inverter's overall efficiency over time.

Solar Inverter Sizing

Solar inverter sizing is a crucial aspect of designing a solar power system for optimal performance and efficiency. Inverter manufacturers typically specify the maximum input energy that their products can handle, along with their maximum power output.

While it may seem intuitive to match the inverter's capacity to the maximum output of the solar panels, in reality, this approach may not be the most cost-effective. Solar power inverters are often selected with a maximum input power lower than the solar panel's maximum output to avoid over-sizing and unnecessary costs.

This deliberate mismatch results in some clipping at maximum power production, where the system isn't designed to handle the absolute peak output of the panels. Clipping occurs when the inverter cannot process all the electricity generated by the solar panels, resulting in some energy loss. However, this approach ensures that the system is appropriately sized to handle typical power generation levels to maximize efficiency and cost-effectiveness over the system's lifetime.

Solar Inverter Cost

When choosing a solar inverter you can't help but wonder "How much do inverters cost?" Be sure to account for factors such as size, type, quality, and efficiency. Basic, low-power solar inverters may be available for as little as $100, while high-power, grid-tied inverters can range upwards of $1,000.

The cost of solar inverters has been steadily decreasing due to technological advancements and increased competition in the market. In we can anticipate further reductions in cost, with prices potentially ranging from $250 to $2,500. It's important to also factor in additional expenses such as monitoring features and warranty coverage when evaluating the overall cost.

Installation costs shouldn’t be overlooked either, especially if mounting on a roof or indoors, as these may vary significantly depending on the complexity of the installation. By carefully considering both upfront and long-term costs, along with performance and efficiency considerations, you can make informed decisions when selecting the right solar inverter for your needs.

Solar Inverter Lifespan

The lifespan of solar inverters varies depending on several factors, including the type of inverter, brand, installation location, maintenance, and environmental conditions. String inverters typically have a lifespan ranging from 10 to 15 years, although proper maintenance and installation in a cool, well-ventilated location can extend their longevity up to two decades.

On the other hand, microinverters and power optimizers, being relatively newer technologies, boast longer lifespans, often exceeding 20 to 25 years, which aligns with the duration of warranties offered by manufacturers. Factors such as humidity, heat, operational load, and maintenance practices significantly impact the lifespan of solar inverters.

To maximize the lifespan of inverters, regular maintenance is key. We recommend installation in ideal environments conducive to their optimal operation. Proper care and attention can help ensure that solar inverters perform efficiently throughout their expected lifespan.

Conclusion

Understanding the nuances of solar inverter selection empowers individuals to navigate the evolving landscape of renewable energy technology with confidence. With advancements continually driving down costs and improving performance, the possibilities for harnessing solar power are expanding.

Whether for residential or commercial applications, selecting the right solar inverter is crucial for maximizing energy production, minimizing expenses, and ensuring long-term sustainability. Embracing the power of solar energy is not just about powering homes and businesses - it's about shaping a greener, more resilient future for generations to come.

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