There are mainly three types of solar inverters: 1. String inverters 2. Microinverters 3. Central inverters String inverters are the most commonly used type of inverters in residential and small commercial solar panel systems. They are called “string” inverters because they work by. Central inverters, also known as large-scale or utility-scale inverters, are used in large commercial and industrial solar panel systems. They are called “central” inverters because they are located in a centralized location and convert the DC power generated by. Microinverters are a type of inverter that are installed directly on each individual solar panel. Unlike string inverters, which convert the DC power generated by a series of panels into AC power, microinverters convert the DC power generated by each.