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Almost all residential areas use AC current. It is not possible to save AC current for future use. Thus, AC current is required to convert to DC current and it is stored in batteries, capacitors etc. When AC is needed the stored DC current is converted to AC to run AC based applications. The device that converts AC current to DC current is called an inverter.

An inverter converts DC voltage to AC voltage. Most of the time we see that the DC voltage output voltage is lower than AC. On the other hand, the output voltage is equal to the AC grid supply voltage. Or it is equal to 120 volts, 240 volts depending on the country. The inverter output of an inverter can be single phase or three phase. Typically, inverters are rated by total power capacity. The total power capacity ranges from one hundred to one megawatt.