What Are the Main Types of Solar Panel Inverters?

Even the strongest solar system can’t work well if one small part fails. That’s because every solar energy setup is only as strong as its weakest piece. And one of the most critical pieces is the solar panel inverter.

Here’s why: solar panels transform the sun’s rays into DC (direct current) energy, but homes and power grids operate on AC (alternating current) electricity. The inverter functions as the bridge. It helps convert DC to AC. Meaning: solar panel inverters convert the energy produced by solar panels so that residential or commercial facilities can use it. No panels, not even high-quality ones, could supply your home with enough energy without an inverter.

In this post, we’ll look at the different types of solar inverters, their functions, how they work, and their usability in various conditions. 

If you want to dig deeper, here’s a good explainer video to start with:

 

Major Types of Solar Inverters (by Application)

Generally speaking, solar inverters can be categorized into three main groups (as shown in the table below). These major categories depend heavily on how they interact with the grid or whether they can be paired with batteries.

Category	Description	Use
On-grid	Turns PV DC into AC and sends any surplus to the grid	Residential and commercial
Off-grid / Standalone	Needs battery storage, independent from the grid	Homes in remote locations, isolated dwellings
Hybrid	Grid-connected with battery storage capability	Households with unreliable grid power, rural or semi-remote homes, environmentally conscious homes, and sustainable businesses

You can look at this classification further in detail in the solar inverter market assessment.

 

Source: XINDUN Green Power

 

Let’s go over each category and then talk about the solar inverter types that fall in them.

On-Grid Inverters

Nowadays, most people prefer grid-tied systems. In this setup, the inverter’s role is not just to convert DC to AC but also to manage power flow and match the grid’s frequency and voltage. 

Moreover, it includes anti-islanding protection, a safety feature that prevents these devices from sending power to the grid after a blackout. On the other side, these inverters might also export surplus generated power to other sources. 

You can usually find the following grid-connected inverters:

• Microinverters
• String inverters
• Optimized string inverters (with power optimizers)
• Central inverters (for large plants)

We’ll compare them in the next section.

Off-Grid / Standalone Inverters

Compared to the previous inverters, these devices don’t rely on the grid. Instead, they are widely used together with a battery bank.

These are the most common traits of an off-grid/standalone inverter:

• No electricity is supplied to the grid.
• They convert DC into AC. 
• They must control battery charging and discharge.

If you’re looking for an inverter in your region with no grid access or that has frequent grid outages, these types of solar panel inverters are for you. They work seamlessly year-round without a grid-dependent system.

Hybrid Inverters

Now take the previous two inverters and ‘merge’ their capabilities. Yes, that is the hybrid (or multi-mode) inverter. 

They can operate in both grid-connected and off-grid modes. Often, these devices can easily switch between:

• Battery charging/discharging 
• Using solar energy to power electrical loads
• Drawing from or feeding to the grid

When you think about it, these hybrid inverters, aka “jack-of-all-trades”, are a handy option. They are really useful when you want storage integration, continuous backup power, or time-of-use optimization. 

And with this kind, it’s no wonder that, with every passing day, more and more residential systems aiming for self-reliance are adopting hybrid inverters. So, it’s worth considering.

Understanding Solar Inverter Topologies 

Now that we’re done with the major categories, let’s look at the common grid-connected inverter types. 

Here are the most common or principal models:

String Inverters

You can call string inverters the traditional, most widely used solar inverter type. It’s your familiar multiple-panel (a “string”) setup fed into one centralized inverter.

Pros:

• Simple installation and maintenance
• Relatively cheap
• Proven technology, broadly used
• Perfect for residential and small commercial setups

Cons:

• If one panel in the string is not working efficiently (due to shade, dirt, or damage), it reduces the unit’s overall efficiency.
• There’s a lack of optimization or monitoring (needs additional equipment for this).
• Not really suitable for complex roofs.  

Microinverters

Meanwhile, in this solar inverter type, each panel has its own small inverter that directly converts DC to AC at the module. Compared to string inverters, this type is a much more viable option (when you consider that in string converters, one underperforming module can drag others down).

Pros:

• Each panel operates independently
• Offers more flexibility
• Better monitoring and optimization
• Longer warranty 
• Ideal for sophisticated roof layouts
• Produces more total energy than a string inverter

Cons:

• Quite costly
• Hard installation and replacement
• Potentially more points of failure (though reliability is high)
• Not the best option for large systems

Optimized String Inverters (Power Optimizers)

This is a hybrid of string inverters and microinverters. Simply, it’s the right balance between the two previous inverters. Each panel (much like microinverters) has a power optimizer (a DC-DC converter) that helps adjust voltage/current to maximize output. So, you’re more in control. Afterward, the optimizer feeds into a central inverter, which converts DC to AC.

Pros:

• Eliminates the problem of “the weakest panel pulling down the whole string”
• Reduces energy losses 
• Provides panel-level monitoring
• Often lower cost than multiple microinverters
• Works well for more complex roofs

Cons:

• More complex installation than with traditional string inverters 
• Compatibility issues
• May complicate future expansion in some cases
• Occasional software bugs

 

Source: Independent Power

Central (Utility) Inverters

These converters are quite uncommon since they are used in large solar farms rather than residential setups.

Pros:

• High output
• Built-in cooling system 
• Lower cost per watt 
• Good for large-scale projects

Cons:

• Complex Installation
• Lacks panel-level monitoring 
• Large and heavy, not very portable
• Not good for small dwellings

 

Source: Techfine

 

If you’re still looking for an inverter for your solar system or haven’t even taken your first step towards an energy-independent future, don’t put it off till tomorrow – get your free solar quote now!

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Comparing the Different Types of Inverters for Solar Setups

If you’re still on the fence about what to choose among the types of solar panel inverters, let’s look at a comparative table:

Type	Cost	Efficiency in Shading	Battery Compatibility	Module-level Monitoring	Preferable Roof Type
String Inverter	~$0.60-$1.00per watt	Poor	No	No (unless with optimizers)	Simple roof
Microinverter	~$1.10-$2.00per watt	Great	No	Yes	Complex roof
Optimized String Inverter	~$0.80-$1.30per watt	Good	No	Yes	Moderate complexity roof
Central Inverter	Low (at scale)	Depends	No	Could be	Large projects
Hybrid Inverter	~$1,000 to a few thousand USD	High	Yes	Could be	Not very complex roofs
Off-grid Inverter	Usually high, but varies a lot	High	Yes	Not typical	Any roof

What’s the Best Solar Inverter Type for You?

No one answer can satisfy everyone’s needs. In the end, every situation is different. 

So, picking the best solar power inverter requires careful consideration, whether it’s for your current setup or long-term plans.

To summarize:

• String inverters – low in price and well established in the market.
• Microinverters – perfect for intricate roof designs and good redundancy.
• Optimized systems – reasonable in price and quality.
• Central inverters – designed for oversized projects.
• Hybrid inverters – the best for prospective battery upgrades.

Once you’ve selected the best solar inverter for your setup, you might need to connect your solar system inverter to Wi-Fi. Before starting that, watch this video:

 

 

Don’t hesitate to request your free solar quote today and start turning sunlight into smarter savings!

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