Solar micro-inverters, like their big brothers string inverters, convert the direct current (DC) electricity that solar panels produce to the alternating current (AC) energy we use to power our electronics. The difference is that they’re smaller.
Instead of converting electricity from an entire solar array or big groups of panels in a solar farm at once, micro-inverters convert DC to AC one or two panels at a time.
Micro-inverters are known to increase solar system efficiency by 5 to 25 percent. The reason is that they are concentrated on one or two panels instead of 100, so they can fine-tune a panel’s output. If there is a problem with one of the panels attached to a string inverter, it can greatly diminish the output of the entire system, depending on the inverter and how it’s configured.