Understanding the options available in the world of renewable solar energy is essential for making the most of today’s advanced photovoltaic (PV) technology. One of the most critical components in this system is the inverter. A quality inverter can significantly boost your solar system’s efficiency—helping you save both energy and money over time.

 

But how do you choose the right inverter without getting lost in technical jargon and complex product listings?

 

To help you navigate the process, we’ve created a comprehensive guide to energy storage solutions. This includes an introduction to energy storage inverters, a breakdown of the various types—such as hybrid inverters and battery inverters—and how each one can support your solar energy system.

 

What are energy storage inverters?

 

You might already know that standard photovoltaic (PV) inverters convert direct current (DC) generated by solar panels into alternating current (AC) for use in your home.

 

Energy storage inverters take things a step further. Unlike regular inverters, they support bidirectional power conversion—meaning they can convert DC to AC and AC back to DC.

 

This ability to switch between current types is what allows energy storage inverters to store power, as their name suggests.

 

In a typical PV system, any excess solar energy you don’t use is sent back to the grid. During the night or when your system isn’t generating power, you draw electricity from the grid—essentially using it as your backup source.

 

But what happens when the grid goes down? Without storage, you’re left in the dark.

 

That’s where energy storage inverters truly shine.

 

To have backup power during outages or extreme weather events, you need to store energy locally—in batteries. However, batteries can only store DC power. Since standard PV inverters output AC, you’ll need an energy storage inverter to convert that AC back into storable DC.

 

Now that we’ve covered the fundamentals, let’s take a closer look at the two main types of energy storage inverters: hybrid inverters and battery inverters.

 

 

What is a hybrid inverter?

 

A hybrid solar inverter functions much like a standard inverter but with added versatility—it can work with both DC from solar panels and AC from the grid or other AC sources, such as generators.

 

The key feature that sets it apart from a traditional PV inverter is its built-in battery port, allowing for two-way power conversion. This means it can charge a battery using solar energy and then convert the stored DC power back to AC when needed.

 

That said, using a battery is optional. Without a battery connected, a hybrid inverter operates just like a regular solar inverter. Many hybrid models also support generators, providing additional backup options during power outages or when living off-grid.

 

Because it’s a DC-coupled system, a hybrid inverter requires only one inverter unit. DC power from the solar panels flows directly to the batteries, and is only converted to AC once—for use in your home or to export to the grid. This single conversion process improves efficiency.

 

However, to protect the batteries, a charge controller is necessary. It regulates the flow of electricity into the battery to prevent overcharging, which can degrade battery health over time.

 

One of the standout advantages of hybrid inverters is their support for a higher DC-to-AC ratio without energy loss. This ratio refers to the total capacity of your solar panels (DC) relative to the output capacity of your inverter (AC). In traditional systems, a high ratio can lead to midday “clipping”—energy loss when solar production exceeds inverter capacity.

 

Hybrid inverters avoid this issue by diverting surplus power to the battery, allowing you to make the most of your solar generation—even when production peaks.

 

Where are hybrid inverters used?

 

Hybrid inverters are most commonly found in residential string solar systems.

 

For homes with large rooftops, a string system is often ideal—solar panels are connected in series, and the hybrid inverter functions like a traditional string inverter, with the added benefit of a battery port for energy storage.

 

If you’re building a new solar system from the ground up and want to integrate both solar generation and battery storage from the start, a hybrid inverter is a smart and cost-effective choice. It streamlines the setup by combining multiple functions into a single device, making it a convenient all-in-one solution for home energy management.

 

What is a battery inverter?

 

Battery inverters are similar to hybrid inverters, but with one key distinction—they’re designed exclusively for use with batteries and do not have a PV (solar panel) input port.

 

Unlike hybrid inverters, which operate as DC-coupled systems, battery inverters are part of an AC-coupled setup. In this configuration, AC power—typically produced by microinverters or a standard PV inverter—is converted back into DC power by the battery inverter for storage in the battery. That’s where the name “battery inverter” comes from.

 

Battery inverters are most commonly used in PV retrofit applications. If you already have a solar system in place—whether it’s a string system or a microinverter setup—and want to add energy storage, a battery inverter enables that functionality by integrating a battery for backup power.

 

Here’s how it works:

 

1. Your existing PV inverter converts the DC energy from your solar panels into usable AC electricity.
2. The battery inverter then takes that AC power and converts it back to DC so it can be stored in the battery.
3. When your home needs power, especially during a grid outage, the battery inverter converts the stored DC energy back into AC to safely power your appliances.

 

It’s important to keep in mind that this process involves multiple conversions—from DC to AC, and then back again—which can lead to some efficiency loss. However, for retrofitting existing systems with storage capabilities, a battery inverter remains a practical and flexible solution.

 

Where are battery inverters used?

 

Battery inverters are ideal for solar systems that require the addition of energy storage, making them especially suitable for retrofit applications. They are commonly used in larger residential setups, as well as in commercial and industrial properties where backup power and energy management are critical.

 

In addition, high-capacity battery inverters play a key role in large-scale energy storage facilities. These installations store surplus energy for later use, ensuring a reliable power supply during peak demand periods or grid outages.

 

What is the difference between a hybrid inverter and a battery inverter?

 

Here is a quick recap of the main differences between hybrid and battery solar inverters:

 

	Hybrid inverters	Battery inverters
System efficiency	Higher self-consumption ratio, higher utilization ratio of PV	Certain power loss during energy conversion
Installation scenario	Brand-new installation	Already have PV inverter and want to have a system retrofit
Coupling	DC-coupling solution, longer time off grid	AC-coupling solution
System components	PV modules Hybrid inverter Generator Battery	PV modules PV inverter or generator Battery inverter Battery