The core parts of a home solar system
Every rooftop system is built from the same handful of components. Here is what each part does and what to look at when you compare it. This is neutral, educational guidance, not a product recommendation.
| Component |
What it does |
What to evaluate |
| Solar panels (modules) |
Turn sunlight into direct-current electricity on your roof. |
Efficiency, power rating, temperature coefficient, degradation rate, and the product and performance warranties. |
| Inverter |
Converts panel DC power into the AC power your home and the grid use. |
String versus microinverter design, efficiency rating, warranty term, and whether you want panel-level monitoring. |
| Battery (optional) |
Stores solar power for backup or to use after the sun goes down. |
Usable capacity, depth of discharge, round-trip efficiency, power output, and warranty cycles. |
| Racking and mounting |
Holds the panels on your roof or on the ground at the right angle. |
Roof versus ground mount, wind and snow load rating, roof penetration and flashing, and material warranty. |
| Monitoring |
Tracks how much the system produces so you can spot a problem early. |
Whole-system versus panel-level data, app access, and whether alerts are included. |
General guidance for 2026, not a quote, an offer, or a product endorsement. Component roles follow U.S. Department of Energy and NREL residential photovoltaic guidance; specifics vary by manufacturer, installer, and your roof. The federal residential solar tax credit (Section 25D) ended December 31, 2025, so it no longer offsets the cost of this equipment for a 2026 buyer.
String inverter vs microinverters, at a glance
The two common inverter setups convert your panels’ power in different places. Neither is universally better; the right one depends on your roof. This is a neutral overview, not a recommendation.
| Setup |
How it converts power |
Where it tends to fit |
| String inverter |
One central unit converts the whole string of panels together. |
A simple, unshaded roof facing mostly one direction; often lower up-front cost. |
| Microinverters |
A small unit on each panel converts that panel’s power on its own. |
Roofs with shade or several angles; adds panel-level monitoring. |
| Power optimizers |
A unit on each panel conditions its power, then a central inverter converts it. |
A middle path with panel-level data and a single inverter to service later. |
Neutral overview, not a product recommendation. The right inverter depends on your roof’s shading, layout, and your monitoring preference. See our microinverters versus string inverters guide for the full comparison.
Where your money goes: rough cost share by part
Here is a useful reality check when you read a quote. On a typical installed residential system, the visible hardware is only part of the price; labor and soft costs (design, permitting, sales, and overhead) make up the majority. These are approximate shares drawn from the NREL U.S. Solar PV System Cost Benchmark, not a quote.
| Part of the job |
Rough share of installed price |
| Solar panels (modules) |
About 10 to 15 percent |
| Inverter |
About 6 to 10 percent |
| Racking, wiring, and other hardware |
About 10 to 15 percent |
| Installation labor |
About 5 to 10 percent |
| Design, permitting, sales, and overhead (soft costs) |
The majority, often more than half |
Approximate shares of the total installed price of a typical residential system, drawn from the NREL U.S. Solar PV System Cost Benchmark; actual shares vary by installer, system size, and region, and the figures are illustrative, not a quote. The takeaway is that comparing two quotes means comparing the whole installed price, not just the panel brand.