Updated on August 10, 2025
While researching different solar systems, you’ve probably come across the term “inverter.” There are string inverters, hybrid inverters, and microinverters. They are three different pieces of technology, but they all do the same thing. They convert DC (direct current) power into AC (alternating current) power for your home.
But how does it happen?
At PSC Energy, we know a thing or two about microinverters. We install them all day long and understand their inner workings down to the finest detail.
In this article, you will learn:
- How Does Sunlight Convert to Energy in My Solar Panels?
- How Does a Microinverter Convert DC Power to AC Power?
- How Does Electricity Travel from the Panels to Your Home?
By the end of the article, you’ll understand the process of collecting energy from the sun. Up, up, and away!
How Does Sunlight Convert to Energy in My Solar Panels?
Earth’s sun is about 150,000,000 kilometres away, give or take a few thousand k’s. Ultraviolet radiation travels through our atmosphere as sunlight and hits the solar panels. Solar Panels are made up of individual solar cells, composed of silicon semiconductors.
The sun’s energy, in the form of UV radiation (sunlight), excites the electrons in the solar cells. The electrons become negatively charged and move towards the surface of the solar cell. This creates a current. This is how DC electricity is generated.
At the surface of the solar cell, a metal gridwork collects the free electrons. This gridwork is made up of strips called busbars and thin wires that connect the solar cells to each busbar, called fingers. The busbar is usually made of silver, though some can be copper or aluminium. A busbar collects energy and redistributes it.
The busbar directs the energy to a central point in the solar panel. This central point is called the junction box. The energy is still at DC at this stage. From there, it’s routed to the microinverters.
If you’re interested in learning a bit more about your energy needs, you might want to check out the following article titled, How Much Solar Do You Need?
How Does a Microinverter Convert DC Power to AC Power?
The DC power exits the panel and goes straight into the microinverter.
It’s the microinverter’s job to optimise and convert that energy to AC power. Every microinverter uses power point tracking to optimise the power it collects and outputs. It takes that information from the power point tracking. It uses it to convert the DC power straightaway into AC power.
This is the heart of the microinverter’s function: converting DC power to AC power.
DC electricity behaves differently from AC electricity. Imagine that DC electricity travels in a straight line while AC electricity is a series of waves.
The microinverter turns this straight line into a ‘wavy’ line. That’s its job. This is achieved through a method known as pulse width modulation (PWM), which generates an alternating current (AC) waveform from direct current (DC) electricity. In essence, it transforms DC electricity to mimic the AC waveform.
The process begins with a reference signal, which is in waveforms since that’s the ultimate output of the microinverter. The microinverter then compares this reference signal with the DC electricity it receives. When it detects a discrepancy between the two, it generates an error signal. In response, the microinverter recognises the mismatch and initiates corrective actions to align the signals.
The microinverter then generates high-frequency pulses that change the frequency of the DC current. It’s adjusted to create a smooth wave signal that matches the reference signal from the grid. This newly formed wave signal is an alternating current (AC electricity).
The AC electricity generated by the microinverter must be in sync with the grid’s AC frequency and phase. In Australia, that frequency is 50 Hz. If a microinverter and the grid are out of sync, the power flowing through the circuitry cannot be used by connected devices. Microinverters sync their AC output with the grid’s. This makes sure there’s a smooth integration of solar-generated electricity with the grid.
If you’re interested in learning a bit more about inverters, you might want to check out the following article titled, What is a Solar Power Inverter?
Ready to go solar? Click here.
How Does Electricity Travel from the Panels to Your Home?
Once the AC electricity is output by the microinverters, it then passes through a trunking cable. Every microinverter in the solar array is plugged into the same trunking cable that connects to your switchboard. It’s like a train track where each microinverter is a station and the electricity is boarding.
All that power is sent directly to the switchboard. Like water flowing downhill, the electricity will find its way to the nearest appliance through the path of least resistance.
Because the electricity works like water in your pipes by following the path of least resistance, the energy your home uses will first come from solar energy. If your solar system is producing more than you’re using at home, it will first supply your home, and then any excess will go to the grid.
The AC electricity becomes part of the electricity available for powering your lights, appliances, and other devices, just like the electricity supplied by your utility company. Everything in your home runs on AC power.
If you’re interested in learning a bit more about weighing the cost of solar against the cost of the grid, you might want to check out the following article titled, Cost of Solar Panels vs. Cost of Energy from the Grid.
Wrapping Things Up
Now you know how important the microinverter is on the journey sunlight takes to reach your lights and appliances. Understanding microinverter systems’ role in converting sunlight to energy reveals their importance in increasing energy efficiency and harnessing solar power.
At PSC Energy, we want you to get the solar system of your dreams. Whatever inverter type you decide on, make sure you ask your solar consultant questions and do your research. Microinverter systems are a remarkable advancement in solar technologies, but they aren’t a perfect fit for everyone.
If you’re interested in learning a bit more about solar panels and energy systems, you might want to check out the following article titled, Are Solar Panels Worth It in NSW, Australia? A Price Breakdown for 2025.
FAQ: How Microinverters Work
What does a microinverter do in a solar system?
A microinverter converts the DC electricity from each solar panel into AC electricity that your home can use. It also keeps the output in sync with the grid.
How does sunlight become electricity in solar panels?
Sunlight excites electrons in the silicon cells of a panel, which creates a flow of DC electricity. This electricity is then collected and sent to the microinverter.
How does a microinverter change DC to AC power?
The microinverter uses power point tracking and pulse width modulation to turn the straight-line flow of DC into the wave-like flow of AC electricity.
Why do homes need AC electricity instead of DC?
Homes and appliances in Australia run on AC electricity at 50 Hz. DC power cannot directly run your devices without being converted.
What is pulse width modulation in a microinverter?
Pulse width modulation is the process of creating high-frequency pulses in the DC current so that it can be reshaped into a smooth AC waveform.
How does electricity travel from the solar panels to my home?
The AC power from each microinverter flows through a trunking cable into your switchboard. From there, it powers your appliances before sending any extra to the grid.
Do microinverters work panel by panel?
Yes. Each microinverter attaches to one panel, which means the system can optimise power output panel by panel instead of relying on a single central inverter.
What happens if one solar panel is shaded with microinverters?
If one panel is shaded, only that panel’s microinverter is affected. The rest of the system continues to produce at full capacity.
What is the difference between a microinverter and a string inverter?
A string inverter connects all panels in a series, while a microinverter works on each panel individually. This reduces performance loss when one panel is shaded or dirty.
What is the role of a busbar in a solar panel?
Busbars are thin metal strips, often made of silver or copper, that collect electrons inside a panel and direct them to the junction box before they reach the inverter.
What is a junction box in a solar panel?
The junction box is the central point that collects DC electricity inside a solar panel and routes it to the microinverter for conversion.
How does electricity from solar panels choose where to go in my home?
Electricity follows the path of least resistance. Your appliances will use solar energy first, and any excess flows to the grid.
Do microinverters make solar power more efficient?
Yes. Microinverters optimise each panel’s performance and reduce losses from shading or mismatched panels, which can increase overall system efficiency.
Can microinverters improve safety in solar systems?
Yes. Because they convert DC to AC at the panel level, they reduce the need for long runs of high-voltage DC wiring, which improves safety.
