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2. Inverters Inverters are crucial for converting the direct current (DC) electricity generated by solar panels into alternating current (AC) electricity, which is used in homes. The cost of inverters typically ranges from $1,000 to $2,500, depending on the type of inverter chosen (string inverters, microinverters, or power optimizers).

The orientation and tilt of the solar panels also impact their performance. Ideally, panels should be positioned to face the sun, with an optimal tilt angle that maximizes sun exposure throughout the year. This ensures that the energy output from each solar panel, regardless of its size, is maximized.