Solar
Solar inverters explained: string, micro and hybrid
What a solar inverter does, how string, micro and hybrid inverters differ, how they’re sized, and what to check on a quote.
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The inverter gets less attention than the panels, but Solar Victoria calls it the heart of the system: when it stops, the panels stop earning. It’s also the part you’ll most likely replace during the system’s life.
The three main types
| String | Microinverter | Hybrid | |
|---|---|---|---|
| Where it goes | One box, usually on a wall | Under each panel | One box, usually on a wall |
| How it works | Panels wired in series strings | Each panel works on its own | Manages solar, battery and grid together |
| Shade | One shaded panel can pull down the whole string | Shade on one panel doesn’t affect the others | As for a string inverter |
| In a blackout | Stops working | Stops working | Can run the home from the battery |
| Best for | Unshaded roofs, lowest cost | Partly shaded or complex roofs, adding panels later | Homes with a battery, or planning one |
A hybrid isn’t the only way to add a battery. Batteries can also work with a string or microinverter system, usually with an extra inverter or a battery with one built in, but those set-ups may lack hybrid features such as backup.
On roofs where panels face different ways, an inverter with two independent inputs, power optimisers or microinverters keep each section working at its best, as Solar Victoria’s planning guide explains.
How inverters are sized
- Matched to the panels. A grid-connected inverter is usually close to the panels’ size, such as a 5 kW inverter with 5 kW of panels.
- Up to 33% more panels. For the STC discount to apply, the panels can be no more than 33% bigger than the inverter. That’s why 6.6 kW of panels on a 5 kW inverter is so common. See how the solar rebate works.
- Network limits. Your network’s export limits are based on inverter size. On a single-phase home, up to 5 kW is usually accepted without extra approval.
- Hybrids. Sizing depends on the battery, your loads and whether you want backup, so leave it to the installer, and ask them to explain it.
What an inverter costs
Solar Victoria gives these indicative prices for a 5 kW inverter:
| Type | Budget | Premium |
|---|---|---|
| Grid-connected (string) | $1,000 | $2,000 |
| Hybrid | $2,500 | $5,000 |
Installed prices vary. Use the quote, not this table, to compare, but a hybrid quoted far above these ranges deserves a question.
Standards and approved models
Inverters must meet Australian standards and be approved before they connect to the grid. Check the exact model number on the Clean Energy Council’s approved inverter list. Since 23 August 2025, models must meet the updated AS/NZS 4777.2 standard, and non-compliant models were removed from the list.
In Victoria, Solar Homes rebates also need certain grid-support features. Your installer or the inverter’s spec sheet can confirm them, and the inverter must be on Solar Victoria’s product lists.
Monitoring and warranty
- Monitoring. Most inverters connect to wi-fi and an app. Solar Victoria recommends remote monitoring so faults don’t go unnoticed while you lose free power and feed-in credits.
- Warranty. Solar Victoria suggests at least 5 years, and many can be extended. See solar warranties explained.
- Replacement. Inverters generally last 10 to 15 years, so budget for one replacement over the life of your panels.
Frequently asked questions
Will my solar work in a blackout?
Most grid-connected systems switch off in a blackout. To keep power on, you need a battery with backup, usually through a hybrid inverter.
Do I need a hybrid inverter to add a battery later?
No. Batteries can be added to string or microinverter systems with an extra inverter or a battery with one built in. A hybrid makes it simpler and can add backup.
Are microinverters better?
They handle shade and panels facing different ways better, and one failure only affects one panel. On a sunny, simple roof, a quality string inverter usually costs less.
How do I know if my inverter has failed?
Check the display or app. A fault light, error code or zero output on a sunny day means it’s time to call your installer.
This guide is general information, not financial or legal advice. Rules, rebates and prices change, so check the linked sources before you decide. Facts checked 18 October 2026.
Sources
- Solar Victoria: Finding the right inverter for your systemsolar.vic.gov.au
- Solar Victoria: Planning your solar electricity systemsolar.vic.gov.au
- Clean Energy Council: Approved inverters that meet the updated inverter standardcleanenergycouncil.org.au
- Solar Victoria: Product listssolar.vic.gov.au
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