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An inverter is one of the most important pieces of equipment in a solar energy system. It's a device that converts direct current (DC) electricity, which is what a solar panel generates, to alternating current (AC) electricity, which the electrical grid uses. There are three options available: string inverters, microinverters, and power optimizers. String inverters have one centralized inverter — or, keeping with the. . From DC to AC, sizing to cost, and hybrids to microinverters—this is the complete, expert guide to understanding the most critical component of your solar setup When you dream of a solar-powered future, you probably picture gleaming solar panels on a sun-drenched roof. What is a solar inverter? An inverter is a. . While solar panels are undeniably important, solar inverters are an equally crucial system component—especially when it comes to creating sustainable energy solutions in homes and buildings around the world.