The solar inverter's primary job is to take the raw DC electricity from your solar panels and convert it into the stable, usable AC electricity that powers your life. . What is a Solar Inverter? The Ultimate 2025 Guide (All Questions Answered) 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. . A solar inverter converts the direct current (DC) electricity that solar panels produce into the alternating current (AC) electricity that our appliances run on. That's where solar inverters come in. Inverters are found in nearly every solar installation, from small residential systems to large utility-scale plants, typically mounted near the main service panel, in a garage or directly beneath the panels. Solar panels produce DC (direct current) power, but your appliances run on AC (alternating current). This one mighty piece of equipment does that conversion and so much more.