This guide covers every inverter type clearly, what each is best for, and the key specs to compare before buying. Its type determines how the system handles shading, batteries and. In simple terms, a solar inverter is a device that converts the direct current (DC) electricity produced by solar panels into alternating current (AC) electricity—the type of electricity your home appliances and the grid actually use. ) Most homes use AC rather than DC energy. DC energy is not safe to use in homes. String inverters connect multiple panels in series (a "string") where DC current flows.