The word “inverter” refers to the process of converting DC power into AC power. In the early days of electric lighting, people used large transformers to do this. But that required lots of copper wire, which was expensive. So engineers invented what we now call a solar inverter. And it works like this:
A solar panel produces DC current. When you connect it to a solar inverter, it turns that current into AC current. You can use that AC current to run lights or appliances.
But how does a solar inverter work? Let’s take a look.
Where Does The Name ‘Inverter’ Come From?
The name “inverter” comes from the fact that it reverses the flow of electricity. This device converts direct current power into alternating current power. It is often used in conjunction with solar panels because it allows you to use less energy to produce the same amount of electricity.
Transformerless Inverters
The use of transformers in residential solar systems is becoming less common due to several reasons. First, most people don’t understand how transformers work and how they affect the quality of power delivered to the home. Second, transformers are large and heavy and require space in the roof of the house that could otherwise be used for panels. Third, many homeowners worry about safety issues such as high voltages being passed into the electrical system. Finally, some utilities are now requiring customers to install “transformerless inverters.” These devices do not contain transformers, making them much lighter, smaller and cheaper. They also eliminate the potential hazards associated with transformers.
Micro-inverters
A microinverter is essentially a miniature version of a conventional grid-connected power inverter. They’re used to connect multiple photovoltaic modules together into an array. In some cases, microinverters are used to improve system efficiency, reduce installation costs, increase energy generation capacity, or provide backup power during outages.
In most cases, microinverter arrays consist of several individual units that feed power to a single load. This allows you to combine many smaller PV systems into a larger system without having to run long strings of wire throughout your property.
Microinverters are typically rated at around 10 amps per module. However, some manufacturers offer 20 amp models. These are usually designed for use with high-power applications such as commercial rooftops or large off-grid systems.
The main advantage of microinverters over traditional grid-tied inverters is that they don’t require a separate battery bank. Instead, they operate directly off of the DC voltage produced by the PV modules. This eliminates the need for batteries, making installations easier and reducing maintenance requirements.
Another benefit of microinverters is that they can be installed much faster than traditional inverters. Because they do not require a dedicated breaker box, they can often be installed in minutes rather than days. Some installers even claim that it takes just seconds to set up a microinverter array.
However, there are some downsides to microinverters. For example, because they do not include a battery bank, they cannot store excess electricity generated during peak times. If you want to use that extra power later, you’ll either need to purchase a battery storage unit or add additional PV modules to generate more power.
In addition, microinverters tend to be slightly less efficient than regular grid-tie inverters. While they still produce DC current, they lack the ability to convert AC to DC. As a result, they lose about 5% of the total energy produced by the PV modules to heat and internal losses.
New Kid On The Block to Hybrid Inverters
Hybrid inverters are already gaining popularity in Australia and New Zealand, where consumers are looking for ways to save energy and reduce costs. These inverters are smarter and more efficient than traditional inverters because they can intelligently manage multiple power sources. They can charge the battery while it’s idle, saving you money. And they don’t just work well with solar panels; they can handle wind turbines, too.
Maximum Power Point Trackers (MPPT)
Solar inverters are complex devices used to convert DC electricity into AC energy. They are often used in conjunction with photovoltaic panels to maximise efficiency and reduce costs. Inverter technology is constantly evolving, and there are many different ways to design one. One such method is called maximum power point tracking (MPPT). This type of tracker uses algorithms to find the best operating voltage and current for each panel. Once it finds the optimal settings, it maintains those settings throughout the day.
The Holy Grail of Solar Inverters
There are three main types of solar inverters: string inverters, micro-inverters, and hybrid inverters. String inverters use large transformers to step down the voltage from the panels to match the grid frequency. Micro-inverters take a small amount of energy from the panels and send it directly to the load. Hybrid inverters combine both methods.
Mass Production Of PV Solar Inverters
In 1991, mass production of PV solar inverters began with the introduction of the SunPower SMA WR 1800. This inverter used silicon diodes to convert DC power into AC power.
The Sunny Boy 700 was introduced five years later in 1995. It was designed to be easy to install and use. Over 10 million units were sold around the world.
From Mechanical To Electronic
Inverter technology has come a long way since it was first developed in the 1950s. Today, inverters are widely used across multiple industries including power generation, renewable energy, transportation, industrial manufacturing, and even consumer electronics.
Inverters Are PCE: Power Conversion Equipment
The term “inverter” refers to electrical devices that take alternating current (AC) power and convert it into direct current (DC) power. This conversion allows you to use the same outlet to plug in multiple appliances such as computers, TVs, cell phones, etc.
A rotary converter is similar to an inverter except that it converts AC power to AC power. A motor generator is another type of device used to convert electricity. They operate similarly to a wind turbine, converting kinetic energy from moving parts into electric energy.
What This Means for Mid North Coast Homeowners
The Mid North Coast is one of the best regions in Australia for solar. With around 5.2 peak sun hours per day and rising electricity prices, the numbers keep improving for homeowners who go solar.
- High solar yield: Port Macquarie, Coffs Harbour, and surrounding areas receive consistent sunlight year-round. Even in winter, a well-sized system produces enough to cover most daytime usage.
- Rising grid costs: Electricity prices on the Mid North Coast have increased by more than 20% over the past three years. Solar locks in a fixed energy cost for 25 years.
- Strong feed-in tariffs are gone: The days of generous feed-in rates are over. Self-consumption is now the key to savings, which makes system sizing and battery storage more important than ever.
- Local installers matter: When something goes wrong, you want an installer who can be on your roof the same week, not a company based in Sydney or Melbourne.
SolaXs has been installing and servicing solar systems in the Port Macquarie region for over 25 years. Get a free quote tailored to your property and energy usage.
Solar Inverters on the Mid North Coast
The Mid North Coast of NSW has seen solar inverter technology evolve firsthand. When SolaXs started installing systems in the early 2000s, inverters were bulky, loud, and limited to basic string configurations. Today, the inverters going onto Port Macquarie rooftops are compact, silent, and capable of managing solar, battery storage, and grid export simultaneously.
Here is how inverter technology has changed for local homeowners over the years.
| Era | Inverter Type | Key Features |
|---|---|---|
| Early 2000s | Basic string inverters | Single MPPT, no monitoring, manual fault checking |
| Late 2000s | Advanced string inverters | Dual MPPT, basic LCD displays, improved efficiency |
| Early 2010s | WiFi-enabled inverters | Remote monitoring via web portals, smartphone apps |
| Mid 2010s | Hybrid inverters | Battery-ready, backup power capability |
| Present | Smart hybrid inverters | AI-driven energy management, VPP participation, EV charger integration |
The shift to hybrid inverters has been the biggest change for Mid North Coast homeowners. With storm season bringing occasional power outages, having an inverter that keeps the lights on during a blackout is a real selling point. Brands like Fronius, GoodWe, and Sungrow all offer hybrid models that pair with battery storage.
What to Look For in a Modern Inverter
If you are buying a new solar system or replacing an old inverter, these are the features that matter most for a typical Australian home.
- Hybrid capability – Even if you are not adding a battery now, choosing a hybrid inverter keeps your options open without needing a second unit later
- WiFi and monitoring – Built-in WiFi with a decent monitoring app lets you track production and spot faults from your phone
- Multiple MPPTs – Two or three maximum power point trackers handle split roof orientations, which is common on Mid North Coast homes
- Backup power – If blackouts concern you, make sure the inverter supports emergency power supply (EPS) when paired with a battery
- 10-year warranty minimum – Any inverter worth installing should come with at least a 10-year product warranty backed by local Australian support
With 25+ years of solar installation experience, SolaXs can recommend the right inverter for your home, roof layout, and energy goals. Get in touch for a free assessment.
For more information, see the Clean Energy Council solar inverter buyers guide and the Australian Government Small-scale Renewable Energy Scheme.