Your solar panels generate direct current (DC) electricity when sunlight hits them, but your home runs on alternating current (AC) electricity—the standard 120 or 240-volt power that flows through your outlets. . A solar inverter is a key part of any solar power system. Solar panels only produce DC power. If solar panels are the heart of your system. . Modern Inverters Are Grid-Support Powerhouses: Today's smart inverters provide advanced grid services including voltage regulation, frequency response, and rapid shutdown capabilities, with transition times as fast as 16 milliseconds between grid-tied and off-grid modes, making them essential. . A quick rundown of how an inverter for solar works To really understand what a solar inverter does, here is a basic guide: Sunlight strikes the solar panels and creates DC electricity.