The inverter converts your panels' raw DC power to usable AC power, and the type you choose affects cost, shade tolerance, and how you monitor your system.
String inverters
A single central inverter (or two, for larger systems) handles power conversion for an entire "string" of panels wired together. String inverters are generally the lower-cost option and have been the industry standard for decades. Their main limitation: if one panel in a string is shaded or underperforming, it can drag down the output of the entire string, since the string operates at the rate of its weakest panel.
Microinverters
A small inverter is mounted behind each individual panel, converting DC to AC right at the source. This means each panel operates independently — shading, dirt, or a fault on one panel doesn't affect the others. Microinverters typically cost more upfront but offer better performance on complex or partially shaded roofs, plus per-panel production monitoring through the manufacturer's app.
Power optimizers: a middle ground
Power optimizers pair with a central string inverter but add a small device at each panel that conditions the power before it reaches the string, capturing much of microinverters' shade-tolerance benefit at a lower cost premium than full microinverters, though the central inverter remains a single point of potential failure.
Which one fits your roof
- Simple, unshaded, single-orientation roof: a quality string inverter is often the most cost-effective choice with no meaningful performance downside.
- Partial shading, multiple roof planes, or complex layout: microinverters or power optimizers typically outperform a straight string inverter setup.
- Want per-panel production data: microinverters and optimizers both offer this; basic string inverters typically only report whole-system totals.
Not financial, tax, or legal advice. Figures on this page are 2026 estimates based on industry aggregator data (EnergySage marketplace medians, SEIA/Wood Mackenzie market insight, and regional installer data) and are provided for general informational and comparison purposes only. Actual pricing, incentive eligibility, and payback periods depend on your specific roof, usage, equipment, and local program rules. Confirm current incentive details at dsireusa.org and consult a licensed tax professional and local installers before making a purchase decision.