A smart inverter is an inverter that includes sophisticated power electronics that allow it to provide a variety of functions while compensating for varying voltage magnitudes from the direct current (DC) source. This is useful in conjunction with PV cells whose optimal operating voltage varies with the amount of sunlight and temperature conditions.
Capabilities of a smart inverter include:
Smart inverters provide the technical capabilities for distributed energy resources (DERs) to interconnect to the grid without causing operating difficulties and, in some cases, to become a resource helping to support grid operations. In some jurisdictions, installation of smart inverters is required as part of the interconnection rules associated with connecting DERs to the grid.