Grid-tie inverter

A grid-tie inverter is a power inverter that converts direct current (DC) electricity into alternating current (AC) with an ability to synchronize to interface with a utility line. Its applications are converting DC sources such as solar panels or small wind turbines into AC for tying with the grid.

Residences and businesses that have a grid-tied electrical system are permitted in many countries to sell their energy to the utility grid. Electricity delivered to the grid can be compensated in several ways. "Net metering" is where the entity that owns the renewable energy power source receives compensation from the utility for its net outflow of power. So for example, if during a given month a power system feeds 500 kilowatt-hours into the grid and uses 100 kilowatt-hours from the grid, it would receive compensation for 400 kilowatt-hours. In the US, net metering policies vary by jurisdiction. Another policy is a feed-in tariff, where the producer is paid for every kilowatt hour delivered to the grid by a special tariff based on a contract with distribution company or other power authority.