Solar panels keep getting more efficient. That's a great thing. But they can't communicate, can't adjust to environmental circumstances, and don't have automatic shutdown capabilities. Fortunately -- and with apologies to the Farrelly brothers (who seem to have similar limitations) -- solar panels aren't getting any dumber. Many of the newest solar panels are equipped with optimizers, either built into the junction box or attached as a separate component to the back of the panel. Microinverters (which convert the DC output of a panel to AC) provide the same basic benefits at similar costs; however, unlike microinverters, optimizers operate on the DC side of the system and are always connected to a central or string inverter.

These optimizers, or power electronics as their also called, provide three basic functions. First, they optimize the output of each panel by adjusting the current and voltage generated by each panel. If there is a weak panel operating at a low current, the optimizer on that panel can lower the voltage across that panel (thereby increasing the current) and prevent that panel from affecting the current of the other panels in the string. Second, optimizers have communications capabilities so that the installer or system owner can see the performance of each individual panel. And third, some new optimizers provide code-required automatic DC shutdown capabilities to prevent arcing and fires.

As with many new solar technologies with high initial costs and unproven benefits, optimizers got a relatively slow start. But as production volumes increased, prices came down and operating capabilities were improved, more and more installers began to use them for both residential and commercial projects. Perhaps the biggest breakthrough came as panel manufacturers began to integrate optimizers into the junction boxes - this step significantly reduced both parts costs and installer labor.

My guest on this week's Energy Show on Renewable Energy World is Zvi Alon, Chairman and CEO of Tigo Energy, based in Los Gatos, California. Tigo is one of the pioneers in the optimizer business, and is getting a lot of traction in the marketplace as more panel and inverter manufacturers build Tigo technology into their products. So listen up to this week's show as we explore the costs and benefits of this latest generation of solar panel optimizers.