A grid-tie inverter is a device that converts direct current (DC) electricity generated by sources like solar panels into alternating current (AC) electricity, which is compatible with the electrical grid. This allows homeowners and businesses to use their own renewable energy while also feeding excess power back into the grid, potentially earning credits or payments. These inverters are designed to synchronize with the grid's voltage and frequency, ensuring a seamless flow of electricity. They play a crucial role in solar energy systems, enabling efficient energy use and contributing to a more sustainable energy landscape.