Solar panels produce Direct Current or DC energy. Your house runs on Alternating Current or AC. The energy produced by the panels runs down into the inverter, is converted to AC and then on into your house, so that it can be used.
The inverter also communicates with the electric grid and keeps the energy in sync. If the grid goes down, the inverter immediately shuts down as a safety feature. This ensures that no electricity makes its way back onto the grid and shocks anyone working on the lines. Overall, the inverter is essentially the hub that makes the whole system work.
