Solar inverter is one of the most important components of Solar PV System. They are brain of solar system. Solar inverter transforms DC electricity into useable AC electricity
String inverters
Solar panels are installed in rows, each on a “string.” For example, if you have 20 panels you may have 4 rows of 5 panels. Multiple strings are connected to one string inverter. Each string carries the DC power the solar panels produce to the inverter where it’s converted into usable AC power consumed as electricity.

Generally residential installations have one string inverter. Commercial installations may have several string inverters each receiving DC power from a few strings depending on the size of the installation.

Central inverters
Central inverter is a high capacity inverter designed for use with large commercial or power station sized solar systems. It is like large string inverter designed to handle more power and offer economies of scale. Central inverters are not used for residential or small commercial solar systems.
Microinverters are installed on each panel. Micro-inverters most effective on shaded roofs as shade affecting one panel will not affect any other unshaded panels. If one or more panels are shaded or are performing on a lower level than the others, the performance of the remaining panels won’t be impacted. Microinverters also monitor the performance of each individual panel, while string inverters show the performance of each string.
Hybrid inverters
Hybrid inverter converts the DC power your solar system generates into AC power, which is used to power the households or businesses and excess power can be fed into the electricity grid. Hybrid inverter also has the feature of sending excess DC power to the battery storage. It can draw on and convert this stored DC power into AC power to supply to household or business as and when required. This usually happens when your solar system is not producing electricity.