The inverter converts the direct current your panels produce into the alternating current your home uses. It is the brain of the system, the component most likely to need replacing during the system's life, and the item where quotations differ most while looking superficially similar.
String inverters are the default for Indian residential rooftops. Your panels are wired in series into a string, and one inverter handles the lot. They are the cheapest option, well proven, and easy to service. Their limitation is that the string performs to its weakest panel: if one module is shaded, the whole string's output drops. On an unshaded terrace this rarely matters. On a roof with a water tank casting afternoon shadow, it matters a great deal.
Microinverters attach to each panel individually. Because each module operates independently, shading on one panel does not drag down the others, and you get per-panel monitoring. The cost is higher, both upfront and because you now have several devices on the roof rather than one accessible unit at ground level. For a genuinely partially-shaded roof they can be worth it. For a clear terrace they usually are not.
Power optimisers sit between the two approaches. Each panel gets a small device that conditions its output, but a single central inverter still does the conversion. You get much of the shade tolerance of microinverters at lower cost, with the serviceable inverter still in an accessible place.
Hybrid inverters can handle both grid connection and battery storage. This matters if you want backup during power cuts, because a standard grid-tied system shuts down when the grid goes down. That shutdown is deliberate and protects linemen working on what should be a dead line. If riding through cuts matters to you, a hybrid inverter plus battery is the route, and it is worth specifying the hybrid inverter at installation even if you add the battery later. Retrofitting is more expensive than planning for it.
What to check on any quotation. The make and model, the warranty period, and whether it is rated appropriately for your system size. Inverter warranties commonly run five to ten years against twenty-five for panels, which tells you something about expected service life. Budget for a replacement somewhere around year ten to twelve rather than being surprised by it.
Sizing. Your inverter capacity is usually specified slightly below or matching your panel capacity, because panels rarely produce their full rated output in real conditions. An installer who cannot explain their sizing choice is worth questioning.
What most NCR homes actually need. A clear, unshaded terrace with a stable grid supply is well served by a good string inverter, and that is what the majority of quotations will offer. Consider optimisers or microinverters if shading is genuinely unavoidable. Consider a hybrid only if power cuts are a daily reality for you and you intend to add storage, remembering that batteries are not subsidised and cost Rs 70,000 to Rs 1.2 lakh separately.
One practical note. The inverter needs a shaded, ventilated location. Mounting it in direct sun shortens its life. Ask where your installer intends to put it and why.
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Last updated 27 July 2026 · Reviewed by the RenSetu team