A micro-inverter functions in a parallel circuit. To simply put, a standard inverter will cap the electricity production of each panel by the lowest producing panel on your roof. A micro-inverter on the other hand, will take full advantage of the production of each individual panel. It will convert the power generated by each panel to the grid voltage.
1. The core advantage of using micro inverters is that theoretically you can yield more solar electricity.The reason for this is that there are slight differences in voltages between solar panels. When solar panels are in a string the voltage is reduced to the voltage of the lowest voltage panel in the string.
2. If a solar system is facing multiple angles, meaning some panels are facing south, some east, and some west, then micro-inverters are the way to go. Or, if you have shading issues from trees or a large chimney, again micro-inverters would be best. In these situations, the solar panels will be producing different amounts of electricity at different times of the day, but micro-inverters will ensure you harvest all of the energy, while with a standard inverter you will lose some of this production. With solar panels all facing one direction on your system, and you have marginal shading issues, then your best option is a standard inverter. You’ll get about the same production, without paying the higher cost.
3. There are other aspects to consider as well. Micro-inverters typically have 25 year warranties while a standard inverters typically have 5 or 10 year warranties. The reliability of micro-inverters was in questions several years ago, but the technology now has caught up with the industry and the long warranties on the micro-inverters shows the confidence the manufacturers have in their products.
4. Micro-inverters and the add-on optimizers both offer an additional perk in system monitoring as well. With either of these devices, you have the ability to track the production of each individual panel, while with a standard inverter you only can track the production of the whole system.
If you were to expand your system in the future, micro-inverters are simple to add one at a time. However, with a standard inverter, it would be more costly to add another full unit.
To sum it all up, micro-inverters are definitely a value-add, but are only recommended if you have panels facing multiple orientations or you have shading issues. Otherwise, the less expensive standard inverter is usually more cost effective.
This means you as a customer only see system wide monitoring information not what is going on with each panel. A sceptic would say that the reason they do this is to protect them and their installers from support calls related to broken inverters. It is very difficult with only system wide monitoring data to determine if only 1 or two inverters out of 25 or so have failed.