The silicon solar panels are semi-conductors that convert light photons into electricity.
The inverter converts the DC from the panels to usable AC, in order to create the type of power needed for your home.
With "Net-Metering", your meter runs backwardswhen you are overproducing and returns power to the power company. During the night and other low production times, your meter will run forward while you consume power from LIPA
The power from the inverter is fed to your existing electric service panel, where it is distributed to your home. Any excess power flows out to your electric meter and spins the meter backwards.
The AC disconnect switch is required by LIPA so that your solar panels can be disconnected from the power grid in case a repair is being made in your area.