You have received a solar quote. Somewhere in it is an inverter specification. This guide helps you work out whether that inverter was chosen for your specific roof, your shading situation, and your battery plans, or whether it was simply what the installer always quotes. The difference can cost you thousands.
Key findings
- There are three distinct inverter types: solar (panels only), battery (battery only), and hybrid (both in one unit).
- For most homes with a simple unshaded roof and no battery plans, inverter choice is straightforward. For everyone else it's the most consequential decision in the system.
- Retrofitting a battery to a system with the wrong inverter means replacing the inverter, which adds significant cost to the project.
- Battery, inverter compatibility is a hidden trap. Most hybrid inverters only work with specific battery brands.
- If you plan to add a battery within five years, specifying a hybrid inverter now is almost always cheaper than retrofitting later.
Three devices, not one
Solar panels produce DC. Your home runs on AC. A solar inverter converts panel output to AC. A battery inverter manages DC power from a battery and converts it to AC. A hybrid inverter does both in one unit.
For a new solar installation
String inverter
One central unit manages all your panels. The lowest cost option and the most proven. Works best when all panels face the same direction with minimal shading.
Hybrid inverter
A string inverter with built-in battery management. Costs more than a plain string inverter. If you plan to add a battery now or within five years, specifying a hybrid at installation is almost always cheaper than retrofitting later.
Microinverters
Each panel gets its own small inverter. The highest cost option. Shade on one panel does not affect the others, so this suits roofs with significant shading or multiple orientations.
DC optimisers with string inverter
Per-panel optimisation at a lower cost than full microinverters. Suits roofs with moderate shading where a pure string inverter would underperform.
Adding a battery to an existing system
AC-coupled battery (with built-in inverter)
Some batteries include their own inverter and connect on the AC side without replacing your solar inverter. More flexible for retrofits, slightly less efficient. Right choice if your existing inverter is relatively new.
DC-coupled battery via hybrid inverter replacement
The battery connects directly between panels and inverter. More efficient but requires replacing your existing string inverter, which adds cost. Right choice if your inverter is near end of life.
Which inverter type is right for your situation
| Your situation | Best fit | Why |
|---|---|---|
| Simple roof, all panels same orientation, no battery plans | String inverter | Lowest upfront cost, proven and easy to service |
| Battery now, or planning one within five years | Hybrid inverter | Cheaper than retrofitting later, single device manages both |
| Significant or seasonal shading on parts of the roof | Microinverters or DC optimisers | Per-panel optimisation prevents one shaded panel dragging the string |
| Multiple roof orientations or complex layout | Microinverters or optimisers | Each panel or string operates independently |
| Existing system, add battery, keep current inverter | AC-coupled battery | Battery brings its own built-in inverter, no inverter replacement needed |
| Existing system, inverter near end of life, add battery | Replace with hybrid | Combine inverter replacement and battery into one project |
Sources
- Australian Government, Inverters: types and roles, energy.gov.au · energy.gov.au
- Clean Energy Council, Battery and inverter compatibility guidance · cleanenergycouncil.org.au