Solar panels are inherently susceptible to shading because they are set up in series. What micro inverters do is isolate each panel from each other in the array. By doing this the micro inverters can use Maximum Power Point Tracking (MPPT) to improve the conversion efficiency and at the same time minimize the effects of shading. This is a great system, and the tracker shown in the picture (Sentinel Solar) is also a great unit. Many people use this micro inverter/tracker combination here in Ontario. Thanks to Ontario's microFIT program solar is not only feasible it is profitable.
Solar Trader
http://www.solartrader.ca 
