In a single phase hybrid inverter system, the solar panels are connected to the inverter, which converts the DC electricity into AC electricity. The AC output of the inverter is then used to power the electrical loads in the building or facility. Any excess solar electricity that is not used by the building is fed back into the grid.

Single phase hybrid inverters are commonly used in small to medium-sized solar panel installations, such as residential rooftop photovoltaic systems and small commercial solar power systems. They offer the benefits of both a solar inverter and a grid-tie inverter, allowing users to take advantage of solar power and sell excess electricity back to the grid.