This is where inverter efficiency comes into play. Think of your inverter like a translator—its job is to convert the DC (direct current) electricity from your solar panels or batteries into AC (alternating current) power that your appliances can use. And like any translator, it’s not always perfect. Some energy gets lost in the process.
No inverter is 100% efficient—some energy always gets lost as heat during the conversion. Most modern inverters have efficiency ratings between 90% and 98%. Let’s break it down: If you feed 1000 watts of DC power into your inverter and it outputs 950 watts of AC power, your inverter efficiency is 95%.
Most modern inverters have efficiency ratings between 90% and 98%. Let’s break it down: If you feed 1000 watts of DC power into your inverter and it outputs 950 watts of AC power, your inverter efficiency is 95%. The other 50 watts were lost in the conversion process—mostly as heat.
Here''s why it matters: Let’s say you have a 5kW solar system and you’re using an inverter with 92% efficiency. That means you’re only getting 4.6kW of usable power. Compare that with an inverter that has 97% efficiency—you’d be getting 4.85kW. Over a year, that difference becomes hundreds of kilowatt-hours.
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