What Are the Different Types of Solar Inverters? A Complete Guide on Choosing the Best Solar Inverter Types for Homes

The main types of solar inverters used in India are string inverters, microinverters, and power optimizers. There’s also a fourth type, a hybrid solar inverter, that’s making the rounds nowadays. Out of the different solar PV inverter types, string inverters are recommended for most residential rooftop solar installations because they are cost-effective and offer reliable performance, since they’ve been around the longest.

Choosing the right types of inverters for solar panels is extremely important because solar inverters directly impact the performance of a solar system. Besides, the cost of different types of inverters in a solar system varies significantly. For instance, while microinverters offer better shade performance, they’re 90% costlier than string inverters. 

The best solar inverters for homes are those that use the MPPT technology to ensure solar panels generate maximum power at any given point during the day. 

In this blog, we will explain all the main solar power inverter types in India in detail, how they work, their pros and cons, key differences between string and microinverters, different factors you should consider while buying a PV inverter for your home, technologies used in different PV inverter types, and whether or not investing in a hybrid solar inverter is worth the money. 

TL;DR Summary Box: Which Type of Inverter is Best For Solar?

An on-grid string inverter that uses the MPPT technology to optimize the output of solar panels is considered the best for rooftop solar panel systems for homes, housing societies, and commercial buildings because these inverters offer the best balance between cost and performance. 

String inverters are simpler to install as they don’t have to be attached to individual panels, up to 90% cheaper than microinverters, simpler to monitor and maintain, reliable because they’ve been around for the longest time, and feature MPP (maximum power point) tracking that can ensure the output from solar panels is maximum irrespective of the sunlight strength and other conditions throughout the day.

Here are the main topics covered in this blog in detail:

What Are Solar Inverters and Why Are They Important?

A solar inverter is a critical component of solar energy systems as it converts the DC output generated by solar panels into AC output, which household appliances require for working. Since solar panels always generate direct current, without a solar inverter, your rooftop solar system won’t be a practical model since it won’t be able to convert direct current into alternating current.

Solar inverters are important for the optimum functioning of a solar photovoltaic system because of the following reasons:

• They convert DC power to AC: Most household appliances and even commercial equipment require alternating current. Since solar inverters can convert direct current from the panels to alternating current, they’re pivotal in solar systems.
• They maximize output from the panels with MPPT: By constantly tracking the maximum power point of the solar panels, PV inverters squeeze the most units out of your solar system throughout the day.
• They keep your system in sync with the grid: They match grid voltage and frequency so that current and voltage can flow smoothly and safely into your home and the grid.
• They protect people and equipment: With anti-islanding, surge protection, and automatic shutdown during faults or outages, on-grid solar inverters reduce risks to appliances and technicians.
• They improve power quality: Good solar inverters deliver a clean sine wave with low harmonics. It helps sensitive appliances run better and last longer.
• They manage batteries in hybrid and off-grid solar systems: Solar inverters handle charging, discharging, and seamless changeover during power cuts to keep essentials running.

What Are the Main Types of Solar Inverters, and How Do They Work?

The four main types of solar inverters in India include string inverters, microinverters, power optimizers, and hybrid solar inverters. While the main function of all these PV inverter types is to convert DC output from panels to AC output, they still differ from each other. 

• String inverters: These are the most common types of solar inverters used in installations where multiple solar panels are connected in series (a string), and the combined DC output is fed into one central inverter. The central string inverter then converts the DC into AC for household or commercial use. The efficiency of these types of inverters for solar panels depends on uniform sunlight exposure since shading on one panel can affect the whole string.
• Microinverters: As the name suggests, these are small inverters that are attached to individual solar panels, instead of one central inverter for the entire system. The DC to AC conversion happens at each panel, which means shading or malfunction of one panel doesn’t affect the others. As a result, microinverters improve overall system efficiency. However, they can be up to 90% costlier than string inverters.
• Power optimizers: Power optimizers work alongside a central string inverter but are placed on each panel to condition the DC output before it reaches the inverter. They help minimize losses from shading and ensure maximum power point tracking (MPPT) at the panel level. This boosts overall energy production while keeping the cost lower than that of microinverters. However, power optimizers still cost a lot more than string inverters.
• Hybrid solar inverters: Hybrid inverters can manage both solar panels and batteries. They convert DC to AC for immediate use and can also store excess energy in batteries for later use. However, modern areas with a reliable grid do not require battery storage since the grid can be used to store any excess electricity generated by the solar panels. Since hybrid solar inverters are extremely expensive, they’re recommended only for areas where the grid is unreliable. 

Now, let’s understand how different solar inverter types work.

How Does a String Inverter Work? 

A string inverter is the most recommended option in rooftop solar systems for housing societies and homes. Panels are wired in series to form one or more strings, and the string inverter converts the combined DC into AC. It’s cost-effective, simple to maintain, and works best on roofs with uniform sunlight.

Let’s check out how string PV inverters work:

• Step 1 – Panel strings are formed: Solar panels are connected in series. As a result, their voltages add up, giving the string inverter a higher DC voltage to work with. However, the same current flows through the entire string.
• Step 2 – Each string’s output is tracked: The inverter monitors the maximum power point (MPP) of each string and adjusts to changing sunlight for optimum energy draw.
• Step 3 – DC to AC conversion: The inverter converts the high-voltage DC into clean AC power that can run household appliances.
• Step 4 – Grid sync and protection: The inverter matches grid voltage and frequency, and it shuts down automatically during faults or outages.

How Does a Microinverter Work?

A microinverter is a small inverter device placed directly under each solar panel. Unlike string inverters, it converts DC to AC at the panel level, making the system highly efficient even if some panels are shaded. 

Let’s understand how microinverters work in simple steps: 

• Step 1 – Per-panel installation: Each solar panel has its own microinverter attached at the back.
• Step 2 – DC to AC conversion on the spot: The microinverter converts the panel’s DC power into AC right at the source.
• Step 3 – AC trunk cabling: The AC output from all panels is combined into a trunk cable and sent to the distribution board.
• Step 4 – Independent panel tracking: Each microinverter tracks its panel’s MPP separately. Hence, shading or malfunction of one panel doesn’t affect the output from other panels.

How Does a Power Optimizer Work?

While considered a type of inverter, a power optimizer is actually a DC-DC device that’s fixed to each solar panel and paired with one central string inverter. It provides panel-level MPPT functionality, similar to a microinverter, but leaves the DC-to-AC conversion to the central inverter unit. This improves efficiency under shading at a lower cost than microinverters.

Here’s the step-by-step working process of power optimizers:

• Step 1 – Per-panel optimization: Each optimizer has the responsibility of adjusting its respective panel’s voltage and current.
• Step 2 – Safe DC handling: Many optimizers reduce voltage during installation or in the event of faults, adding an extra layer of safety.
• Step 3 – DC output to inverter: Optimized DC power from all panels is sent to the central string inverter.
• Step 4 – DC to AC conversion: The string inverter converts the conditioned DC into AC power for your loads.

How Does a Hybrid Solar Inverter Work?

A hybrid solar inverter is a two-in-one device that functions as both a solar inverter and a battery controller. It powers appliances, manages battery charging/discharging, and can export excess electricity to the grid, if the DISCOM allows.

Let’s understand the working of a hybrid solar inverter in simple steps:

• Step 1 – Output is tracked with MPPT: The inverter tracks the panel output and uses solar power to run household appliances first.
• Step 2 – The battery bank is charged: Surplus solar energy is diverted to charge the lithium battery bank.
• Step 3 – DC to AC conversion: The inverter converts DC from panels or batteries into AC to run your appliances.
• Step 4 – Grid connection: If the DISCOM permits, a hybrid solar inverter can export excess energy to the grid or limit export based on local regulations.
• Step 5 – Backup during outages: When the grid fails, the inverter switches to island mode and supplies power from the battery to keep the load running.

What is the Difference Between String Inverters and Microinverters?

The biggest debate between choosing between PV inverter types falls back on string inverters and microinverters, as these are the two most popular types of inverters for solar panels in India. While microinverters resolve the issue of shading because shading on one panel does not affect the output of the entire string, they can be up to 90% more expensive than string inverters. 

Let’s understand how these two types of inverters in a solar system differ:

Pros and Cons of Different Solar Inverter Types

Different types of inverters in a solar system have their own advantages and disadvantages. It’s important to learn the pros and cons of each type as it will help you choose the correct inverter type based on your requirements and the rooftop condition. 

For example, if your roof is heavily impacted by shadows, installing a microinverter will be worth the investment. However, if your roof gets enough sunlight during peak sunshine hours and you still install a microinverter instead of a string inverter, you’ll be paying up to 90% more money without the need for the same.

That said, let’s check out the pros and cons of all types of solar inverters in detail.

Pros and Cons of String Inverters

String inverters are up to 90% cheaper than microinverters, easier to install and maintain, and extremely reliable since they’ve been around for the longest time out of all types of solar inverters. However, if shadows affect the output of one panel, the output of the entire string gets reduced.

Let’s check out all the pros and cons of a string inverter in detail:

Pros and Cons of Microinverters

While microinverters resolve the issue of partial shadows, as shade on one panel will not reduce the output of the entire string, they’re up to 90% more expensive than string solar inverters. Their upfront cost is the biggest hurdle and the primary reason why most residential and commercial rooftop solar installations still use string inverters.

Let’s check out all the pros and cons of microinverters in detail:

Pros and Cons of Power Optimizers

Power optimizers offer a middle-ground solution that combines panel-level optimization while being more cost-effective than microinverters. However, higher component count increases installation complexity compared to simple string inverters. 

Let’s check out all the pros and cons of power optimizers in detail:

Pros and Cons of Hybrid Solar Inverters

Hybrid solar inverters function as both a battery controller and a solar inverter; however, they cost significantly more upfront than a regular on-grid string solar inverter with an MPPT algorithm. 

Let’s check out all the pros and cons of hybrid solar inverters in detail now:

Which Types of Inverters Are Best For Solar Panels?

On-grid string solar inverters that use the MPPT algorithm are considered the best types of inverters for solar panels in India, especially on rooftops that are not heavily shaded. These PV inverters are the most affordable, and it’s easiest to find a replacement component for them since they’re readily available and have been present in the market for the longest time. 

Here are the multiple reasons why most residential and commercial solar panel systems in India use string inverters:

• Cost-effectiveness: String inverters are the most affordable option compared to microinverters or hybrid inverters. This makes them ideal for homeowners and housing societies that want reliable solar at a lower upfront cost.
• Proven reliability: These solar PV inverter types have been in the Indian solar market for the longest time, with a solid track record of durability and performance. Hence, their replacement parts are widely available.
• MPPT efficiency: Modern string inverters use the Maximum Power Point Tracking (MPPT) algorithm, which constantly adjusts to get the most energy out of your panels as sunlight changes throughout the day.
• Easy availability: Since string inverters are the most widely used, you can find multiple models, brands, and replacement components easily. The best string inverters come from brands like SunGrow, Enphase, and SolarEdge.
• High efficiency in unshaded roofs: For rooftops where all panels face the same direction and receive uniform sunlight, string inverters deliver very high efficiency.
• Simpler installation and maintenance: With just one central unit to install and service, the system setup is straightforward and ongoing maintenance is easier.
• Grid compatibility: On-grid string inverters are designed to synchronize perfectly with the utility grid, making them suitable for solar net metering policies in India.

When Should You Use Microinverters Instead of String Inverters?

Microinverters might be more efficient, but they’re far from ideal for every solar rooftop system because of their higher upfront cost. They are worth the extra investment only when shading, complex layouts, or granular monitoring are key concerns.

Use microinverters in place of string inverters only if the following problems exist: 

• Shadows cloud your rooftop: If trees, water tanks, or nearby buildings cast shade on panels during peak sunshine hours.
• Panel-level monitoring is critical: If you want detailed insights into how each panel is performing, microinverters provide individual data that string inverters cannot. But keep in mind that microinverters are up to 90% costlier than string inverters. They will significantly increase the final solar system installation cost. 

What Are the Main Technologies Used in Different PV Inverter Types?

The two main technologies are PWM (Pulse Width Modulation) and MPPT (Maximum Power Point Tracking). Out of the two, PWM inverters were more widely used earlier. However, they’re almost obsolete nowadays because MPPT-based inverters offer a much higher efficiency. 

• Pulse Width Modulation (PWM): This is a simpler inverter technology where the inverter regulates the output by rapidly switching the power on and off. It was commonly used in older solar charge controllers and inverters. PWM provides basic conversion but wastes generated solar electricity since it doesn’t always extract the maximum possible power from solar panels.
• Maximum Power Point Tracking (MPPT): This advanced inverter technology continuously adjusts voltage and current to find the maximum operating point of the solar panels. This ensures panels always deliver their maximum possible power regardless of sunlight variations. The power output from MPPT technology is almost 30% more than the power output from PWM technology. 

How to Choose the Right Solar Power Inverter Types for Homes?

Choosing the right inverter is critical because solar inverters eventually determine the solar output you’ll receive from your system. This output will then determine the actual savings and ROI over decades. You must consider the sunlight strength on your rooftop and shadowing issues when choosing a solar inverter, as investing in a microinverter even when it’s not required can make solar installation unnecessarily expensive. 

Here are the multiple factors to keep in mind so you can choose the best types of solar inverters based on your personal requirements: 

• Let professionals conduct a rooftop inspection: A detailed shading analysis will confirm whether or not you require microinverters. If shadows do not affect your roof during peak sunshine hours, opt for string inverters that use the MPPT technology.
• Consider shading and roof layout: If your roof has uniform sunlight, a string inverter works best. For shaded or multi-direction roofs, microinverters or power optimizers prevent efficiency losses.
• Efficiency of the inverter: Always check the inverter’s efficiency rating and opt for models that have efficiencies in the range of 95-98%. Higher efficiency means the inverter will convert more solar power into usable electricity, giving you better returns.
• Always value brand reputation: Go for well-known brands like SunGrow, Enphase, or SolarEdge as they have a strong service network in India. A reputed brand ensures better reliability, easier availability of spare parts, faster service, and longer warranties.
• Operating temperature range: Solar inverters in India must withstand high heat. Therefore, always check if the model supports wide ambient temperature ranges. Better cooling and derating features extend lifespan.
• Keep an eye on safety features: Look for anti-islanding, DC disconnection, surge protection, and rapid shutdown features. Safer systems protect people and equipment.

What are the Benefits of Installing On-Grid Rooftop Solar Systems in India?

On-grid rooftop solar systems offer faster returns as the installation cost breaks even in just 3 to 5 years, can reduce electricity bills by 90%, and are cheaper than off-grid and hybrid solar systems because, unlike these two solar system types, on-grid systems do not require expensive lithium batteries to store solar energy. If panels in on-grid systems produce extra energy, it can be sent to the grid through a bi-directional net meter.

On-grid solar systems are better than off-grid and hybrid systems for multiple reasons, listed below:

• The government offers a subsidy: Homeowners and housing societies can claim a subsidy under the PM Surya Ghar Muft Bijli Yojana only for installing on-grid rooftop solar systems. You will not be able to avail of this financial assistance if you install off-grid solar systems, ground-mounted solar systems, or commercial solar systems.
• Electricity bills get lower by 90% or more: Since an on-grid rooftop solar system will reduce your reliance on grid electricity, your electricity bills will deflate by 90% or more. With proper solar panel cleaning and system maintenance, your solar system will continue generating free solar electricity for 25+ years. Since you won’t have to pay hefty bills for over two decades, you will save all that money you would have otherwise spent on electricity bills.  

Here’s a simple table that takes you through the cost of installing a 4 kW on-grid rooftop solar system in India vs the savings this system can offer in its 25-year lifespan: 

*Please note: The above-mentioned 4 kW solar panel price in India with subsidy is indicative as of 22nd September 2025 for the SolarSquare Blue 6ft variant. The actual 4 kW solar plate price depends on your DISCOM charges, city, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc. Prices are subject to change. Additionally, when calculating savings, we have considered an annual tariff escalation of 3% and an annual degradation of 1%. The actual final savings from for a 4 kW solar panel system depends on the types of solar panels you’ve installed and their efficiency, intensity of sunlight your rooftop receives, orientation of the panels and tilt angle, the pollution level and weather conditions in your city, the temperature, shadow on the roof, impact of dirt/dust, and how well you maintain your panels after installation.

You can also use SolarSquare’s free solar panel estimator to get an idea of the ideal solar system size for your home, the approximate cost of installing that solar system in your city, and the savings that the system will offer in 25 years.

Conclusion

Out of all types of solar inverters, string inverters offer the most economical solution for rooftop solar installations and remain the preferred choice for most homeowners and housing societies. You should opt for a microinverter, which can cost up to 90% more than a string inverter, only if shadows afflict your roof during peak sunshine hours. 

When choosing a solar inverter for your home, always consider factors such as brand reputation, efficiency, and shading on your rooftop. Choose the inverter that best suits your particular requirements. 

For any solar installation-related queries, you can book a free solar consultation call with SolarSquare. 

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FAQs

Q1. Which is better, PWM or MPPT solar inverter?

Ans. An MPPT solar inverter is better than PWM inverters because it generates up to 30% more output from solar panels.

Q2. What is an MPPT inverter?

Ans. An MPPT inverter is a solar inverter that uses a Maximum Power Point Tracking (MPPT) algorithm to get the highest possible energy from solar panels. It constantly adjusts voltage and current to find the sweet spot where panels produce maximum power, making the system 20-30% more efficient than older PWM inverters.

Q3. What is the difference between PWM and MPPT solar inverter types?

Ans. The main difference is that PWM inverters directly match panel voltage to battery voltage by rapidly switching power, which is simple but less efficient. In contrast, MPPT inverters use smart algorithms to continuously adjust voltage and current to extract maximum possible power, making them much more efficient and widely used today.

Q4. What company is best for solar inverters?

Ans. The best companies for solar inverters which you can trust in India include SunGrow, Enphase, and SolarEdge.