A Moonshot Moment for Solar

Residential solar installations saw a record first quarter. But then the coronavirus pumped the brakes on customers seeking cheaper energy solutions like solar, with one company even giving it away for free.

But the sun is set to shine on the solar sector again, with new solar installations set to rise 33% this year. Tesla (TSLA) wants in on that action. It announced last week that it’s “introducing the lowest-ever cost to go solar.”

Elon Musk isn’t the only entrepreneur who sees a moonshot in the sun.

Warren Buffett, via Berkshire Hathaway (BRK.A) subsidiary NV Energy, is spending $1 billion to build the country’s biggest solar plant just outside of Las Vegas.

Those are just some of the reasons why the solar revolution is starting to heat back up. Another is that a key piece of technology is here that can help solar eclipse other forms of energy.

The solution is collecting and using solar energy from solar panels—known as photovoltaic (PV) panels—that turn sunlight into electricity. These have been around since the 1950s, but they weren’t very popular due to high costs… and they weren’t much help at night.

Plus, most PV panels aren’t plug-and-play. PV panels produce direct current (DC) power, and all the things we power in our homes require alternating current (AC).

So, you need another device to convert DC from the panels into the AC you need to power your home.

This device—called an inverter—could change the game for solar energy.

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