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The smallest photovoltaic inverter, primarily used for residential installations, is the microinverter. Each panel (or a maximum of two combined panels) comes with its own integrated inverter. This helps maximize energy output and improve performance in shaded or partially obstructed conditions – as MPPT (Maximum Power Point Tracking) can be optimized for each individual panel. Systems are also more flexible and reliable as more panels can easily be added without modifying the existing setup and a failure in one inverter does not affect the other panels. Typically rated up to a maximum of 3 kW they are ideal for small residential installations and increasingly for public facilities like streetlights or illuminated road signs.