An inverter is an electronic device that converts DC (direct current) electricity generated by solar panels into AC (alternating current) electricity that can be used by household appliances and fed into the grid. It is a crucial component of any solar PV system, as it is responsible for managing the power flow and ensuring that the system operates efficiently.

Inverters come in two main types: string inverters and microinverters. String inverters are used for larger PV systems, and convert the power from a string of solar panels, while microinverters are used for smaller systems, and are installed on each individual panel to convert its power. Inverters also offer a range of features, including data monitoring, safety features, and grid connectivity. They can also be used in conjunction with battery storage systems, allowing excess energy to be stored for later use. Overall, the inverter is a critical component in the operation and optimization of a solar PV system.