The short answer? Neither is “better” on its own. Solar panels and inverters are two sides of the same coin, working together to turn sunlight into usable electricity. Inverters are found in nearly every solar installation, from small residential systems to large utility-scale plants, typically mounted near the main service panel, in a garage or directly beneath the panels. It's a device that converts direct current (DC) electricity, which is what a solar panel generates, to alternating current (AC) electricity, which the electrical grid uses. But what exactly do they do and does every solar system need one? In this simple guide for beginners, we look at the functions of a solar inverter, the different types and how to choose the right one for your system.