A solar inverter is one of the most crucial parts of a solar power system. It converts the energy output from solar panels into a usable electricity form, to be utilised in your home or workplace. A solar inverter works by taking in the direct current, or 'DC' output, from your solar panels and transforming it into alternating 120V/240V current, or 'AC' output. The appliances in your home run on AC, not DC, which is why the solar inverter must change the DC output that is collected by your solar panels.