Inverter In many cases, AC power is required. There are two kinds of electricity, DC and AC. Homes that are connected to utility power use AC electricity. Flashlights, small radios, and automobiles use DC electricity. The direct output of the solar generation system is generally direct current, which needs to convert the DC (direct current) generated by the solar power system into AC (alternating current), so an inverter is required. An inverter is a device that converts direct current (DC) into alternating current (AC).