The inverter is typically located in an accessible location, as close as practical to the modules. In a residential application, the inverter is often mounted to the exterior sidewall of the home near the electrical main or sub panels. Since inverters make a slight noise, this should be taken into consideration when selecting the location.

The inverter turns the DC electricity generated by the solar panels into 120-volt AC that can be put to immediate use by connecting the inverter directly to a dedicated circuit breaker in the electrical panel.

The inverter, electricity production meter, and electricity net meter are connected so that power produced by your solar electric system will first be consumed by the electrical loads currently in operation. The balance of power produced by your solar electric system passes through your electrical panel and out onto the electric grid. Whenever you are producing more electricity from your solar electric system than you are immediately consuming, your electric utility meter will turn backwards!